Ba 241 Law

Chapter 9 Quiz

I. Contract: agreement enforceable by a court of law or equity

-Legally Enforceable Contract: a contract in which if one party fails to perform as promised, the other party can use the court system to enforce the contract and recover damages or other remedy

II. Offeror Vs. Offeree

1. Offeror: the party who makes an offer to enter into a contract (makes offer)

2. Offeree: the party to whom an offer to enter into a contract is made (gives acceptance)

III. Elements of a contract for forming a contract

1. Agreement: Offer + Acceptance

2. Consideration: fairness of what you exchange of value (give vs. get)

3. Capacity: knowledge capacity=mental understanding of what you are getting into

4. Legality: what is being exchanged or the way it is being exchanged is legal

-Law is an implied term in all contracts and ignorance of the law is no excuse and judge or jury will reform the contract for you through reformation, so businesses should get a lawyer

IV. Defenses to the Enforcement of a Contract

1. Genuineness of Assent: contract must seen genuine, not duress, undue influence, fraud

2. Writing and Form: contracts must be in writing and a certain form

- Main reason contracts are enforceable is because both parties were willing participants, in theory both are suppose to be better off or getting something out of a contract

V. Sources of Contract Law

1. Common Law: precedent for later decisions

2. Uniform Commercial Code: statutory that includes laws that create a uniform system of commercial law among the 50 states: divided into 9 main articles

A. Article 2: Sales Contracts

B. Article 2A: Lease Contracts

3. Restatement of the Law of Contracts: compilation of model contract law principles drafted by legal scholars: is not law, used for guidance

VI. Objective Theory of Contracts: theory stating that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the...