Elements of a Contract
Name the two parts of an agreement
Offer and Acceptance
Both parties exchange promises to perform something. What type of contract is this?
Bilateral contract.
A definite proposal showing willingness to enter a contract if accepted.
Offer
Under traditional common law, an acceptance must match the offer's terms. What is this rule called?
Mirror-image rule
What is the bargained-for exchange of legal value required for most contracts?
Consideration
What is the legal term for something of value exchanged between parties?
Consideration
One party promises something in exchange for another party performing an act.
Unilateral Contract
A seller offers a bicycle for $200. The buyer responds, "I'll pay $175." What has the buyer made?
Counteroffer
What body of law generally governs contracts for the sale of goods?
Uniform Commercial Code (UCC)
An aunt promises her nephew $500 for his birthday with nothing required in return. What kind of promise is this?
Gift promise
What term describes a person's legal ability to enter a contract?
Capacity
A contract in which one or both parties still have obligations to perform
Executory contract.
An offeror withdraws an offer before it has been accepted. What is this called?
Revocation
What body of law generally governs contracts for services and real estate?
Common Law
A person promises $100 for a favor that was completed last month. What is the legal term for this type of consideration?
Past Consideration
Which contract requirement is violated when an agreement involves an illegal activity?
Legality
A contract that one party may legally choose to cancel.
Voidable contract.
Under common law, a buyer replies, "I accept your $1,000 offer, but only if you include free delivery." What is the legal effect?
Rejection of the original offer and creation of a counteroffer
A person reasonably relies on a promise, suffers a loss, and asks a court to enforce the promise despite a lack of consideration. What legal doctrine may apply?
Promissory estoppel.
A contractor demands $2,000 more to complete exactly the work already required by an existing contract, without offering anything new. What rule may prevent enforcement of the new promise?
Preexisting-duty rule
Identify all seven contract requirements commonly taught in this unit.
Offer, acceptance, consideration, legality, capacity, genuine consent, and writing when required
A customer sits in a barber's chair, receives a haircut, and is expected to pay, even though no price was discussed. What type of contract exists?
Implied-in-fact contract
A properly mailed acceptance is generally effective when sent, even if the offeror has not yet received it. What rule applies?
Mailbox rule.
A court orders someone to pay the reasonable value of a benefit unfairly retained, even though no actual contract was formed. What legal principle applies
Quasi contract (unjust enrichment)
A company promises to buy 100 laptops "if we feel like it," without committing itself to anything. What type of promise is this?
Illusory promise.