Chapter 10 List Vocab - Business Law

1. Offer
2. Acceptance
3. Consideration
4. Legality
5. Capacity
6. Consent
7. Writing

-Begins the contract process
-Proposing a deal
-Must be in a certain way are legal
-definite terms

-Receives an offer
-Must respond in a certain way

-Bargaining that leads to an exchange.
-Both sides must receive some benefit

The contract's purpose must be legal

Ex: courts will not enforce agreements to sell cocaine

The parties must be adults of sound mind

Trickery and force can prevent the formation of a contract

-"I'll give you an offer you can't refuse"

Must be in writing to be enforceable

Party fully accomplishes what the contract requires, his duties are discharged.

A court will award money or other relief to a party injured by a breach of contract.

-Can be fully enforceable.
-Smart to put in writing though

1. Valid offer and acceptance- If a deal is proposed and the other party does something to accept it

2. Consideration- Whether the parties exchanged something of value signaling they both to be bound by the agreement

3. Capacity and Legality- If the subject matter is legal and the parties were adults with sound minds

4. Consent- If there was fraud or trickery

5. Writing- Terms were in writing

A promise made in exchange for another promise

ex: A team signs an athlete to 2 year deal. (Athlete must play for 2 years and the Team must pay him)

-A binding agreement
-can accept only by action, not words

ex: I'll pay anyone \$100 who finds my dog

-An agreement in which 1 or more parties have not YET fulfilled their duties

ex: the moment the athlete and the team agree to a contract, it is executory

When all parties fulfilled their duties.

One that satisfies all of the law's requirements

-Parties intend to form a valid bargain
-a court declares that law prevent it.

-Contract that neither party can enforce
-bargain is illegal or one of the parties had no legal authority to make it.

Agreement that may be terminated by one of the parties

-An agreement with all the important terms explicitly states
-

The words and conduct of the parties indicate they intended an agreement.

ex: kid mows lawn for producer one day a week for 2 months. Continues to mow lawn after those 2 months and producers pays him

-Possible remedy for injured plaintiff w/:

-No valid contract
-a promise
-reasonable reliance,
-injustice

- A possible remedy for injured plaintiff w/:

-No valid contract
-benefit provided to defendant and expected pay
-unjust enrichment

-"As much as he deserves"
-award from a Quasi-Contract case

makes an offer

Receives an offer

One side must make an offer and the other must make an acceptance

A letter that summarizes the main points of a negotiation or proposed contract

Advertisements
Letters of Intent
Invitations to Bargain

-Must be definite
-Lack of information cannot be enforced by a court even if both parties agree

An offer is revoked when the offeror "takes it back" before the offeree accepts it.

offeree rejects offer, offer is terminated

Party responds to an offer with a new and different proposal.
-is a rejection

-Offer gives a time limit for acceptance, binding
-no time limit: offeree has reasonable period in which to accept

-If an offeror dies or becomes incapacitated the offer is terminated automatically and immediately

-Destruction of subject matter terminates the offer

Requires that acceptances be on precisely the same terms as the offer.

governs contracts when the primary purpose is a sale of goods.

modifies the mirror image rule

-Most important factor is whether the parties believe they have a binding agreement or not.

-If offeree adds new terms to offer, acceptance by offeror creates binding agreement.

ex: clicking the read and agree button

-include arbitration clauses
-Before inserting a CD in the computer you must agree to terms on the brochure

1. Value
- both parties receive a benefit

2. Bargained-for exchange
-"if you do this, i will do that"

when she does something she was not legally required to do

ex: teacher threatening to not post final grades unless given money. Demand is void b/c its an obligation to post grades

-opposite of an act
-Refraining to do something that one has a legal right to do

ex: elderly man promises not to drive at night

A promise to do or not do something in future counts as consideration.

The promise to mow someone's lawn is the same thing as actually doing it