Legal & Ethical Environment of Business -
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
What's an expressed contract? An agreement that is expressed in oral or written words; an
actual at law
Most Contracts are... Expressed contracts
Counteroffer - When the offeror rejects and comes up with new terms
- A response by an offeree that contains terms and conditions different from or in addition to
those of the offer
- Counter offer terminates original offer!!!!!
Consideration - Both sides give up & receive semi-equal value
- Something of legal value given in exchange for a promise. Both sides must give up & receive
qual value.
Past Consideration - Bad consideration; no consideration; when offer is made after you
acted
, Legal & Ethical Environment of Business -
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
- A prior act or performance. Does not support a new contract, which means new consideration
must be given.
Promissory Estoppel/ Detrimental Reliance - Action @ equity
- You made a promise... I relied on it... and I was harmed
Capacity A person is legally able to enter a contract (age, state of mind, etc)
Void Contract - No Legal effort (minor, intoxication, insanity, undue influence)
Voidable Contract - One side can choose to enforce the contract
- One or more parties has the option to void their contractual obligation. If contract is voided,
both parties are released from obligation. One side can choose to enforce, then judge decides.
Some are unenforceable.
Minor - Contract is voidable of minor.
, Legal & Ethical Environment of Business -
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
- 3 exceptions: Business contracts, student loans, and contract of necessity (food, clothing,
shelter)
Intoxication Contract is voidable once intoxicated person sobers up.
Insanity Voidable if judge or court rules they lack capacity or has previously lacked
capacity.
Undue Influence - No Force! Person in position of trust plays your trust to get what they
want.
Duress - FORCED you illegally in signing a contract
Legality - Have to be legal to sue
- Contract is legally valid
- Void if usury or illegal gambling)
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
What's an expressed contract? An agreement that is expressed in oral or written words; an
actual at law
Most Contracts are... Expressed contracts
Counteroffer - When the offeror rejects and comes up with new terms
- A response by an offeree that contains terms and conditions different from or in addition to
those of the offer
- Counter offer terminates original offer!!!!!
Consideration - Both sides give up & receive semi-equal value
- Something of legal value given in exchange for a promise. Both sides must give up & receive
qual value.
Past Consideration - Bad consideration; no consideration; when offer is made after you
acted
, Legal & Ethical Environment of Business -
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
- A prior act or performance. Does not support a new contract, which means new consideration
must be given.
Promissory Estoppel/ Detrimental Reliance - Action @ equity
- You made a promise... I relied on it... and I was harmed
Capacity A person is legally able to enter a contract (age, state of mind, etc)
Void Contract - No Legal effort (minor, intoxication, insanity, undue influence)
Voidable Contract - One side can choose to enforce the contract
- One or more parties has the option to void their contractual obligation. If contract is voided,
both parties are released from obligation. One side can choose to enforce, then judge decides.
Some are unenforceable.
Minor - Contract is voidable of minor.
, Legal & Ethical Environment of Business -
Exam 2 Study Guide - Perry Binder (GSU
2018) With Solutions 100% Complete
- 3 exceptions: Business contracts, student loans, and contract of necessity (food, clothing,
shelter)
Intoxication Contract is voidable once intoxicated person sobers up.
Insanity Voidable if judge or court rules they lack capacity or has previously lacked
capacity.
Undue Influence - No Force! Person in position of trust plays your trust to get what they
want.
Duress - FORCED you illegally in signing a contract
Legality - Have to be legal to sue
- Contract is legally valid
- Void if usury or illegal gambling)
