What is the definition of a contract.
An agreement between two or more parties that creates an obligation.
What are the three requirements or factors of consideration?
Must have something of legal value or sufficiency
Must be a bargained for exchange
Each party must give a promise, performance, or forbearance
What are we talking about when we mention the idea of Legal purpose in a contract?
We are referring to the fact the the promise or performance included in consideration is not breaking any laws.
What are the requirements for a valid contract?
Offer and Acceptance
Genuine Assent
Legality
Consideration
Capacity
Writing.
What is the definition of a "Remedy".
Remedy: an action or procedure followed to enforce a right or receive damages for an injury to a right.
Define the term "Voidable contract"
A contract whose legal effect can be cancelled by one or more of the parties to it.
What is a legal detriment?
doing or not doing an act when one has a legal right to do so.
What is the difference between a void and an illegal agreement.
A void agreement may or may not be prohibited by law, being void refers to the fact that the contract is non-binding. All illegal agreements are prohibited by law and one can be penalized for entering into such an agreement.
What are the requirements of a valid OFFER?
Expression of intent to create a legal obligation
Offer must be complete and clear
Offer must be communicated to the offeree
What is the primary remedy for a minor breach of contract ?
Monetary damages
Define "Unilateral contract"
A contract in which one party may be obligated to fulfill a contractual promise and then only if another party performs.
What is an illusory Promise
An illusory promise is not really a promise at all, it is a deal that places no obligation on the "promisor".
What are we referring to when we say a contract has to be in "proper form"?
We are referring to the fact that some contracts must be WRITTEN so that they can be legally binding.
What 3 items should a contract contain in order to be deemed complete and clear?
Offers should contain price, subject matter, quantity
What is the difference between recission and restitution?
Recission allows the parties to treat the contract as canceled, while permits the injured party to recover money or property.
Define "Forbearance"
A promise not to do something or to delay something.
Scenario: Rebecca makes a deal with Lucille that would allow Lucille to earn 1 penny of every dollar Rebecca makes until the end of time. In return, Rebecca gets to take one item from Lucille's lunch every day for the next year.
2 months from that day Rebecca requests that the court make the contract voidable, because it is not a fair deal. How will the court rule on this and why?
The contract would stand because adequacy/fairness is not relevant to the courts so long as it is legally sufficient.
What is another term for contracts that must be in writing.
Contracts that are within the statute of Frauds.
When can advertisements be deemed offers.
It is sufficiently definite in its terms, meaning descriptions, quality, quantity, & price;
It is communicated to a specific person or people, generally a limited group of people; and
The circumstances surrounding the publication show that the advertiser intends to enter into a contract.
What is "Specific Performance"?
A decree that the breaching party do exactly what was required under the contract because monetary compensation is not enough
What is a "Implied Contract"?
An implied contract is not stated; they are determined from the surrounding circumstances of an established pattern of dealings.
Can you, in your own words, explain to the class what promissory estoppel is?
When the court forces a party to keep their promises or "Consideration" to another party.
What is the difference between signing a physical contract and an E-contract
TRICK QUESTION... Nothing.
What are the different reasons a contract could be deemed voidable due to Genuine Assent?
Mistakes
Misrepresentation
Fraud
Undue influence
Duress