Key terms to Contracts

Key terms to Contracts

1. Acceptance

   • willingness by offeree to go with offer
   • Benefits
     • something that a party wasn't entitled to receive 
     • Bilateral
       • two promises
       • Capacity
         • legal ability to enter into a contract
         • Consideration
           • exchange of benefits & detriments by the parties to an agreements
           • Counteroffer
             • any changes in the terms of the offer
             • Death
               • offeror died
               • Detriments
                 • any loss suffered
                 • Durees
                   • overcoming a person's fee will by use of force or by threat of force or bodily harm
                   • Economic Duress
                     • threats to a person's business or income
                     • Emancipation
                       • serving of the parents-child relationship
                       • Express
                         • contact statement that may be written or oral
                         • Firm Offer
                           • written offer for good that state the period of time during which the offer stays open 
                           • Forbearance
                             • not doing something that you have the right to do
                             • Fraudulent Misrepresentation
                               • party to a contact deliberately makes an untrue statement of face
                               • Genuine Agreement
                                 • valid offer has been made by the offeror and a valid acceptance has been exercised by the offeree 
                                 • Illusory Promises
                                   • clause or wording that allows party to escape from a legal obligation
                                   • Implied
                                     • contract that comes from the actions of the parties
                                     • Insanity
                                       • offeror is declared insane 
                                       • Legality
                                         • illegal contracts
                                         • Mentally Incapacitated
                                           • lacking the ability to understand consequences of contractual actions 
                                           • Mirror Image Rule
                                             • terms of acceptance must match exactly the terms of the offer
                                             • Mutual Mistake
                                               • both parties mistaken about an important fact
                                               • Nominal Consideration
                                                 • token amount in a written contract where either the parties can't or do not wish to state the amount
                                                 • Offer
                                                   • proposal by 1 party to another with intent to create a legal binding agreement
                                                   • Offeree
                                                     • who the offer is made to
                                                     • Offeror
                                                       • makes the offer
                                                       • Option
                                                         • the offeree gives the offeror something of value in return for a promise to keep offer open for period of time
                                                         • Oral
                                                           • created by 2 or more people speaking to each other
                                                           • Past Performance
                                                             • act that has already been performed can't be consideration in a contract
                                                             • Price Fixing
                                                               • competitors agree on certain price ranges within which they will sell their products
                                                               • Rejection
                                                                 • refusal by offeree
                                                                 • Restrictive Covenant
                                                                   • agreement not to compete in a region for a period of time