Contract Law Key Terms

Annotations:

• One party's proposal

1. Acceptance

   Annotations:

   • one part's acceptance
   1. Genuine Agreement

      Annotations:

      • when both partyies agree
      1. Consideration

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         • exchange of benefits and detriments communicated between the parties
         1. Capacity

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            • legal ability to enter into a contract
            1. Legality

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               • the "legalness" of contracts

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• when offeror takes back offer

1. Rejection

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   • when offeree turns down offer
   1. Counter Offer

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      • when offeree follows up with an offer 
      1. Death

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         • someone dies
         1. Insanity

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            • when someone is not mentally able to fulfill their end of the contract
            1. Expiration of Time

               Annotations:

               • when offeror doesn't meet deadlines
               1. Destruction of Subject Matter

                  Annotations:

                  • object at hand is damaged or destroyed

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• contract that has all aspects to be legal

1. Void Contract

   Annotations:

   • contracts without legal affect
   1. Voidable Contract

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      • contract that CAN be voided due to legal reasons
      1. Unenforceable Contract

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         • Contract that will not uphold in court, usually over legal reasons

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• contract that comes about based on actions of the parties

1. Mentally Incapacitated

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   • mentally unable to understand and agree to terms
   1. Mirror Image Rule

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      • when offer matches terms
      1. Mutual Mistake

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         • both parties are mistaken about an important fact
         1. Nominal Consideration

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            • token amount in a written statement that both parties do not wish to express.
            1. Offeree

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               • has offer made to them
               1. Offeror

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                  • makes offer
                  1. Option

                     Annotations:

                     • similar to a deposit
                     1. Oral

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                        • created by people speaking to each other
                        1. Past Performance

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                           • act already performed that cant be considered in the contract
                           1. Price Fixing

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                              • competitors agree on price range in which they will sell their products
                              1. Restrictive Covenant

                                 Annotations:

                                 • competitors agree to not compete during a certain period of time or in a certain area.
                                 1. Undue Influence

                                    Annotations:

                                    • unfair and improper persuassive pressure within a relationship of trust
                                    1. Unilateral

                                       Annotations:

                                       • contains promise from one party to do something only if an act is performed by other party
                                       1. Usury

                                          Annotations:

                                          • charging too high of an interest rate

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• something a party wasn't previously entitled to receive

1. Bilateral

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   • contains two parties and agreements
   1. Detriments

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      • losses suffered or item(s) given up
      1. Duress

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         • overcoming a persons free will by force, fear or threat
         1. Economic Duress

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            • threats to a persons business or income
            1. Emancipation

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               • severing a parent child relationship
               1. Express

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                  • contract statement shared (oral or written)
                  1. 'Firm Offer

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                     • written offer for goods that states that the offer will be open for a period of time
                     1. Forebearance

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                        • not doing something you have the right to do 
                        1. Fraudulent Misinterpretation

                           Annotations:

                           • party involved in contract deliberately makes an untrue statement or fact
                           1. Illusory Promises

                              Annotations:

                              • clause or wording that allows a party to escape from legal obligation
                              1. Statute of Frauds

                                 Annotations:

                                 • requires that certain contracts be in writing in order to be enforceable.
                                 1. Unconscionsble

                                    Annotations:

                                    • something so grossly unfair that it would shock the court
                                    1. Unilateral Mistake

                                       Annotations:

                                       • an error made only by one party
                                       1. Written

                                          Annotations:

                                          • contract terms that are written so that both parties are clear of what the terms are