Chapter 11
What are the 2 sources of Contract Law?
Common Law & Statutory Law
What is consideration?
Consideration is the value given in return for a promise in a bilateral contract, or the value given in return for a performance in a unilateral contract.
What is ratification?
Ratification is the legal avoidance, or setting aside of a contractual obligation.
What is the promisor? What is the promisee?
The promisor is the person making the promise. The promisee is the person to whom the promise is made.
What 3 main forms can a 'legally sufficient value' take?
A promise to do something, the performance of an action, and forbearance.
In certain jurisdictions, minors can be held responsible for what?
They can be held responsible for the damage to goods, ordinary wear and tear, and depreciation.
How is a contract formed?
A contract is formed by two or more parties who agree to perform or to refrain from performing some act now or in the future.
What is the difference between a bilateral contract and a unilateral contract?
Bilateral contracts are a promise for a promise. Unilateral contracts are a promise for an act.
How can marriage play a role in minority status?
Minority status can be terminated upon marriage in some states.
What will the courts look at when interpreting a contract?
Courts will look at the course of dealing, usage of trade, and course of performance.
What is the adequacy of consideration?
Adequacy of consideration concerns the fairness of the bargain between the parties is fair or equal in value.
What can happen if someone withdraws from an illegal agreement?
If a party withdraws before the illegal purpose occurs, they may recover the value of what they contributed.
What is the 'Plain Meaning Rule'?
Courts give words their ordinary, obvious meaning unless the contract clearly defines them differently.
When can voluntary consent be lacking?
A large disparity or imbalance in the value of consideration can signal possible fraud, duress, or undue influence and may prompt a court to scrutinize the contract for unfairness or unconscionability.
What is the 'justifiable ignorance of facts'?
A party who did not know and had no reason to know a contract was illegal may still recover damages or be paid for performance.