Business Law - Contract Law Flashcards 2

4/28/2021 Business Law: Contract Law Flashcards | Quizlet
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Business Law: Contract Law

Terms in this set (62)
(can be oral or written)

i. Offer
ii. Consideration
Contract Requirements
iii. Legality
iv. Acceptance
v. Capacity
impossible for courts to get in head of contract

parties- so they will not try to interpret a contract
legal concept that a binding agreement exists

Objective theory of between two (or more) parties if a reasonable
contracts person would judge (from the outward and
objective acts of the parties and the associated
circumstances) that an offer has been made and
accepted. It dispenses with the subjective notion of
intention ('meeting of minds')
i. Mentally capable
ii. Legally capable (ie minors cannot enter into
Capacity
contracts)
iii. Not under influence (drugs, alcohol)
Legality i. Illegal contracts are not valid or enforceable

https://quizlet.com/4764733/business-law-contract-law-flash-cards/ 1/4
i. Unintentional mistakes- mutual vs unilateral

Mistake/Fraud 1. Fraud= making representations/ promises that a
party knows can't and will not be fulfilled
i. Freely and voluntarily entered into contract

Consent 1. Cannot be forced- taken advantage of (is elderly
and their wills)
The rule of privity: The doctrine of privity in the

common law of contract provides that a contract
cannot confer rights or impose obligations arising
under it on any person or agent except the parties
to it.
The premise is that only parties to contracts should
be able to sue to enforce their rights or claim
damages as such. However, the doctrine has proven
problematic due to its implications upon contracts
made for the benefit of third parties who are unable
Third party rights to enforce the obligations of the contracting
parties.
If a third party gets a benefit under a contract, it
does not have the right to go against the parties to
the contract beyond its entitlement to a benefit. An
example of this occurs when a manufacturer sells a
product to a distributor and the distributor sells the
product to a retailer. The retailer then sells the
product to a consumer. There is no privity of
contract between the manufacturer and the
consumer.
Contracts are entered into to induce parties to

Performance
perform

i. Issues, damages, limits on non breaching parties

contractual damages
ii. Contracts are all about promises- don't make a
promise you can't keep
is a legal cause of action in which a binding
agreement or bargained-for exchange is not
honored by one or more of the parties to the
Breach contract by non-performance or interference with
the other party's performance. If the party does not
fulfill hju is contractual promise, or has given
information to the other party that he will not
perform his duty as mentioned in the contract or if
by his action and conduct he seems to be unable to
perform the contract, he is said to breach the
contract.
i. Judge made law that has withstood the test of time

Common law that now stands as precedent (English Contract
Law)
3 Elements: plaintiff furnished some service or

property, plaintiff expected to be paid and
Implied in-fact contract
defendant knew/should of known it was expected,
defendant had a chance to reject and did not
a promise for a promise

Bilateral contract 1. not legally obligated to provide promise, but
someone seeks to do
offer made to someone( this person isn't obligated)

ie: if...I will give you or if I do ... will you give me...
unilateral contract 1. obligated only when accepted
2. only one promise being made that otherwise
would not have been done
i. Contracts don't have to be in writing ( there are

exceptions)
1. Bilateral and unilateral contracts do not have to
be in writing
Oral v. Written
ii. However in risk management in business written
contracts can help validate claims and outsiders
know meaning of contract
all items are clearly stated with nothing left to the

Express contract
imagination

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4/28/2021 Business Law: Contract Law Flashcards | Quizlet

Home / Social Science / Law / Civil Law

Business Law: Contract Law

(can be oral or written)

impossible for courts to get in head of contract

legal concept that a binding agreement exists

Legality i. Illegal contracts are not valid or enforceable

Business Law: Contract Law

i. Unintentional mistakes- mutual vs unilateral

i. Freely and voluntarily entered into contract

The rule of privity: The doctrine of privity in the

Contracts are entered into to induce parties to

Business Law: Contract Law

i. Issues, damages, limits on non breaching parties

i. Judge made law that has withstood the test of time

3 Elements: plaintiff furnished some service or

a promise for a promise

offer made to someone( this person isn't obligated)

i. Contracts don't have to be in writing ( there are

all items are clearly stated with nothing left to the

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