Dynamic Business Law 2nd Edition Kubasek |Test Bank

contract - ans promise or set of promises for the breach of which the law gives a remedy or performance of which the law recognizes a duty agreement - ans one of the 4 elements for a contract; consists of an offer made by offeror, acceptance of offer by offeree offer - ans consists of the terms/conditions set by one offeror to be presented to offeree acceptance - ans consists of agreement of offeree to the terms of the offeror consideration - ans the bargained-for exchange; what each party gets in exchange for their promise under contract contractual capacity - ans legal ability to enter into binding agreement (minors, intoxicated, mental illness) legal object - ans purpose that doesn't violate a statute or public policy lack of genuine assent - ans defense to agreement of a contract in which offeree claims that the offeror secured the agreement through improper means (duress, fraud, undue influence, misrepresentation) UCC - ans statutory source of contract law in US applicable to transactions involving sake of goods; may be modified by each state bilateral contract - ans promise exchanged for a promise unilateral contract - ans promise exchanged for an act express contract - ans contract in which all terms are clearly set forth in either written or spoken words implied contract - ans contract that arises not from words, but from conduct of parties quasi contract - ans court-imposed contractual obligation to prevent unjust enrichment valid - ans includes all 4 elements (agreement, consideration, contractual capacity, legal object) unenforceable - ans term applied to contract that, because of law, can't be enforced by courts void - ans not valid because its object is illegal or it has some defect that is so serious that its not a contract voidable - ans one or both parties have ability to either withdraw from or enforce executed - ans all the terms have been fully performed executory - ans not all of the terms have been fully performed formal contract - ans contract that must have a special form or must be created in a specific manner contract under seal - ans contract that has a seal certifying its legality; require no consideration for them to be legal recognizance - ans obligation in which a party acknowledges in court that they will perform some specified act and/or pay a price on failure to do so letter of credit - ans binding document that a buyer can request from bank to guarantee that the payment of goods will be made to seller negotiable instrument - ans written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at certain time to holder of the instrument; acceptable medium for exchanging value from one person to another informal contract - ans contract that requires no formalities intent - ans intended purpose or goal of an action especially in a contract option contract - ans agreement whereby offeree gives offeror piece of consideration in exchange for offeror's agreement to hold offer open for specified period of time mirror-image rule - ans principle that holds that the terms of the acceptance must mirror the terms of the offer; if terms don't mirror each other then no contract is formed & the attempted acceptance is counteroffer mailbox rule - ans principle that holds that an acceptance is valid when its placed in the mailbox, whereas a revocation is effective only when received by offeree; some jurisdictions it has been expanded to faxes contract law - ans UCC & case law OR CSIG (Convention on Contracts for Internal Sales of Goods) Restatement of the Law Second, Contracts - ans way to look up common law; created by scholars Locus Sigilli - ans "place for the seal" Consumer Protect Laws - ans requiring ads to state that quantities of item are limited and X number of people or rain check if item sells out (Lefkowitz v. Great Minneapolis Surplus Store, Inc.)