Vocabulary
Consideration
Something of value which a party exchanges in a contract
Consideration does not have to be of equal value
Adequacy of consideration
Define disaffirm
When a minor cancels a contract
2 different terms for genuine assent
Mutual agreement, meeting of the minds, genuine agreement
Promise may be _______ even though no consideration is given for it
enforceable
Fraud
Intentionally deceiving a party so they will contract with you; deliberate deception
Time frame for filing a lawsuit (usually 3 years) is known as
Statute of Limitations
Name 2 types of contract a minor cannot cancel
Necessaries, armed forces agreements, banking contracts, real estate, educational loans
if one party in the contract makes a mistake it is known as a ________ mistake, thus the contract will be ______
Unilateral
as is
The act of refraining from ones legal right which can be used as consideration
Forbearance
Age of Minority
When the owner of a business promises to keep an offer open by writing the details on paper, then signing it, it is known as a ____ offer.
firm
Explain the difference between a void and voidable contract
Void- was never valid
Voidable- something in the contract that may allow a party to escape
If one party knowingly hides material facts, or does not disclose material information, it is known as ______
Concealment
Promises made to this type of organization will typically be enforceable by the court
Charitable
Duress
Using force or threats to make someone enter a contract
Charging more than a states maximum allowable interest rate.
usurious or usury
Making a payment or signing a contract are examples of
ratification
Two key elements in undue influence
Relationship of trust/confidence
using your power to get the other party to contract with you
Promissory Estoppel is a doctrine that states that a party may recover on the basis of a promise if the plaintiff does in fact ___ and ____ on the promise
rely and act
Contractual Capacity
The ability to understand the consequences of a contract
When an offeror takes back their offer before its accepted
revocation
Define scope of authority
someone who has the capacity to enter a contract for an organization even though they do not own the business
Define rescission
When both parties return what they received, thus canceling the contract
Define unconscionable
grossly unjust or unfair. Courts will void