Contract Basics
The term for a legally binding agreement between two or more parties
A contract
An agreement with clearly stated terms, either written or spoken
Express Contract
When both parties have met all contract obligations
Performance
Monetary award to the party that suffered injury
Damages
Cancellation of the obligations imposed by a contract
Discharge of a contract
Consideration
Contract that exists based on actions, rather than written or spoken words
Implied-in-Fact
Mutual agreement of both parties to end or change contract obligations
Later Agreement
Specific Performance
Mirror Image Rule
The legal ability to enter into a contract
Capacity
Contract that is created by law to prevent someone from getting a benefit for nothing
Implied-in-law
When one party fails to perform as agreed
Breach of Contract
Damages intended to cover cost of the injury, as well as pain and suffering
Compensatory Damages
The legal principle requiring certain contracts to be in writing.
The Statute of Frauds
Contracts for an illegal act are not legally _________ ?
Enforceable
Agreement in which both parties make promises to each other
Bilateral contract
A contract specifies cancellation for non-performance or with written notice
Condition of Terms
Type of damages used to punish wrongful behavior
Punitive Damages
Termination of an offer where the offeree changes the terms and sends the offer back.
Counteroffer
Genuine Assent
An agreement where something agreed upon remains undone by one or both parties
Executory Contract
Contract contains a specific date or length of time for expiration
Period of Time
Remedy allows both parties to cancel the contract and return to their original positions
Rescission & Restitution
Transfer of ownership without getting anything in return is called a __________
Gift