Law 231 Exam 2: Jana Phillips Latest Update
valid contracts - ANSWER Legality, Agreement, consideration, capacity
capacity - ANSWER sober, adult, have the correct mental state
enforceable contract - ANSWER a contract that can be enforced in court
Unenforceable Contract - ANSWER A contract in which the essential elements to
create a valid contract are met but there is some legal defense to the
enforcement of the contract.
Statute of frauds
Voidable Contract - ANSWER A contract that may be legally avoided at the
option of one or both of the parties.- minor
Bilateral Contract - ANSWER A promise made in exchange for another promise
Unilateral Contract - ANSWER A contract that results when an offer can be
accepted only by the offeree's performance.
Express Contract - ANSWER created when the parties have knowingly and
intentionally agreed on the promises and performances
Implied Contract - ANSWER a contract in which the agreement us reached by
the parties actions- buying ice cream from Andys
Executed Contract - ANSWER contract completely performed by all parties
executory contract - ANSWER contract not yet fully preformed by all parties
Void Contract - ANSWER Never had all the components of a contract. A contract
having no legal force or binding effect.
Offer and Acceptance - ANSWER Two essential components of a valid contract;
a "meeting of the minds."
1. Offer- Offeror
2. Acceptance- Offeree
Serious and objective intent - ANSWER Serious- not made in anger, jest, pr
under excitement
Objective- how a reasonable offer would interpret the offerers words
, counter offer - ANSWER where the offeree rejects the the original offer and
proposes a new offer
Recission - ANSWER parties agree to cancel the contract
Novation - ANSWER Substituting a new obligation for an old one or substituting
new parties to an existing obligation.
Express Warranties - ANSWER a seller expressly represents that the goods have
certain qualities or a level of efficentcy
doesn't have to be a merchant
oral or written promise by seller about goods
requires affirmative action
Implied Warrenty of Merchantability - ANSWER seller must be a merchant
a merchantable good is...
1. reasonably fit fro for the general purpose for which it is used
2. properly packaged and labeled
3. of proper quality
implied warranty of fitness for a particular purpose - ANSWER buyer must
prove...
-buyer relied on the sellers advice and recommendation
-seller knew of the buyers desire to use the product in a specific way
-dont need to be a merchant
warranty disclaimer - ANSWER The UCC allows a seller to disclaim both implied
and express warranties under certain conditions
-seller must do so in writing, such as capital letters, bold print, or large font
The UCC (Uniform Commercial Code) - ANSWER Applies only to sales contracts
that are agreements for the sale of tangible goods (must be merchants)
Open terms of the UCC - ANSWER Quantity: theres no contract w/o a stated
quantity,
Delivery: Pick up at sellers location,
Payment: due at the time of pick up,
Price: reasonable price at the time of pick up
Common Law - ANSWER Has no open terms. Offerer can revoke an offer at any
time before the acceptance
Merchant's Firm Offer - ANSWER created when merchant offers to sell goods, in
writing that promises the offer will be help open:
-offer is a merchant
valid contracts - ANSWER Legality, Agreement, consideration, capacity
capacity - ANSWER sober, adult, have the correct mental state
enforceable contract - ANSWER a contract that can be enforced in court
Unenforceable Contract - ANSWER A contract in which the essential elements to
create a valid contract are met but there is some legal defense to the
enforcement of the contract.
Statute of frauds
Voidable Contract - ANSWER A contract that may be legally avoided at the
option of one or both of the parties.- minor
Bilateral Contract - ANSWER A promise made in exchange for another promise
Unilateral Contract - ANSWER A contract that results when an offer can be
accepted only by the offeree's performance.
Express Contract - ANSWER created when the parties have knowingly and
intentionally agreed on the promises and performances
Implied Contract - ANSWER a contract in which the agreement us reached by
the parties actions- buying ice cream from Andys
Executed Contract - ANSWER contract completely performed by all parties
executory contract - ANSWER contract not yet fully preformed by all parties
Void Contract - ANSWER Never had all the components of a contract. A contract
having no legal force or binding effect.
Offer and Acceptance - ANSWER Two essential components of a valid contract;
a "meeting of the minds."
1. Offer- Offeror
2. Acceptance- Offeree
Serious and objective intent - ANSWER Serious- not made in anger, jest, pr
under excitement
Objective- how a reasonable offer would interpret the offerers words
, counter offer - ANSWER where the offeree rejects the the original offer and
proposes a new offer
Recission - ANSWER parties agree to cancel the contract
Novation - ANSWER Substituting a new obligation for an old one or substituting
new parties to an existing obligation.
Express Warranties - ANSWER a seller expressly represents that the goods have
certain qualities or a level of efficentcy
doesn't have to be a merchant
oral or written promise by seller about goods
requires affirmative action
Implied Warrenty of Merchantability - ANSWER seller must be a merchant
a merchantable good is...
1. reasonably fit fro for the general purpose for which it is used
2. properly packaged and labeled
3. of proper quality
implied warranty of fitness for a particular purpose - ANSWER buyer must
prove...
-buyer relied on the sellers advice and recommendation
-seller knew of the buyers desire to use the product in a specific way
-dont need to be a merchant
warranty disclaimer - ANSWER The UCC allows a seller to disclaim both implied
and express warranties under certain conditions
-seller must do so in writing, such as capital letters, bold print, or large font
The UCC (Uniform Commercial Code) - ANSWER Applies only to sales contracts
that are agreements for the sale of tangible goods (must be merchants)
Open terms of the UCC - ANSWER Quantity: theres no contract w/o a stated
quantity,
Delivery: Pick up at sellers location,
Payment: due at the time of pick up,
Price: reasonable price at the time of pick up
Common Law - ANSWER Has no open terms. Offerer can revoke an offer at any
time before the acceptance
Merchant's Firm Offer - ANSWER created when merchant offers to sell goods, in
writing that promises the offer will be help open:
-offer is a merchant
