POL 220 Chapter 10: Contracts

the practice of law related to business matters, including contract drafting, real estate matters, and intellectual property issues

an area of law that governs the agreements between two or more entities

partnership agreements, real estate sales agreements, leases, and licesning agreements

an agreement that is between two or more parties support by consideration and that is enforceable by law

English common law

- Mutual consent
- Consideration
- Capable parties
- Legal subject matter

person making an offer to another

person who receives the offer

current intent to enter into an agreement with each other

- Offeror must intend to enter into a contract
- Offer must be communicated to the offeree
- The essential terms must be certain and definite

- subject mattter
- quantity
- price
- time

no

minimum amount that a seller will accept as the winning bid

- comply with method designated by the offeror
- be done in a timely manner
- not vary the terms of the offer

contract in which both parties have made promises to perform

contract in which the offer is accepted by performance rather than a promise

rule of contract law providing that the acceptance of an offer cannot vary or add terms to the offer

functions as both a rejection of an offer to enter into a contract, as well as a new offer that materially changes the terms of the original offer, that the original offeror can accept

Rule of contract law providing that an acceptance is valid upon mailing if mail is an agreeable method of acceptance and the mail is properly addressed and stamped

unequivocal and free from pressure

wrongful act of pressuring or threatening one of the parties to contract in order to coerce them into entering a contract; often involves economic pressures

pressure brought about by one in a position of trust or confidence who takes advantage of the position to coerce a person entering into a contract

a misrepresentation of fact, knowing it is false, made to persuade a party to consent to a contract, upon which the defrauded party relied and without which the party would not have entered into the contract

no contract was entered into

extremely unfair and unreasonable

willingness to give up something of value in return to enter into an agreement

one who makes a promise

person to whom a promise is made

if a person is under a legal or contractual duty to do something prior to making a promise, such a promise is not sufficient consideration for a contract

small or insignificant amount of money or something of value that is typically demonstrative of the agreement

statement that resembles a promise but in fact does not obligate the promissor to do anything

promise to keep an offer open for a set period of time

judicial theory that allows for recovery when the party relies on a reasonable promise and who is adversely affected by the reliance

an agreement that one party can seek to set aside

at what age are people considered capable parites

law based on English common law that requires certain types of contracts to be evidenced by writing

- Contracts involving the sale of land
- Contracts that cannot be performed within one year
- Surety agreements or an agreement to pay the debt of another
- Contracts that affect marriage, including prenuptial agreements
- Contracts for the sale of goods over $500 - Contracts made by an executor of an estate to pay the debts of an estate

states that when parties have put their agreement in writing, evidence of prior or contemporaneous statements regarding the agreement are not admissible if a dispute arises and the parties go to trial

indicates that the contract is meant to embody all of the terms of the parties’ agreement

event or act that must occur before the other party is required to perform their promise (exception to the parol rule)

contract imposed by law; transaction that will be treated as a valid contract even though one or more elements may be missing, because that is the equitable thing to do

prevents injustice by requiring a person who makes promises that induce reliance and action by another to be liable for the harms suffered

promise made by the parties to a contract

to refrain from doing something you have a legal right to do

mutually dependent condition in a contract that requires both parties to perform at the same time

condition that terminates a duty to perform under a contract

transfer of one's rights under a contract

person to whom a transfer or assignment is made

person who makes a transfer or assignment of rights under a contract

failure of one party to a contract to perfom his or her obligations under the contract

party’s failure to perform their obligations under the contract is substantial

party’s failure to perform their obligations under the contract is slight

breaching party informs the nonbreaching party that performance will not take place before the time to perform is due

is an anticipatory breach considered an actual breach of contract?

financial penalty or an order issued by a court requiring the breaching party to compensate the other party to the contract

money to compensate for breach of contract

court order requiring one party to fulfill his or her obligations under a contract

return consideration that was given

compromise and settlement that extinguishes the prior agreement in return for a new performance

1. bona fide dispute between parties
2. substitute performance tendered in full satisfaction
3. acceptance of the tendered performance

set of suggested rules that are written by experts that emphasize commercial transactions

definitive offer by a merchant to keep an offer open for a specific period of time

article that regulates sale of goods