Business Law Test 2 Terms

Forbearance

Used as consideration, give up your right to sue.

Unforeseen Difficulities

Not bad weather

Promissionary Estoppel

Substitute for consideration, rely on a promise to your detriment

Reaffirmation

Bankruptcy, promise to pay a discharged debt

Modification of contract

Common law requires consideration, AIA requires writing

Unilateral contract

Consideration is performance of the act

Consideration (General)

Receive legal benefit, incur legal detriment

Accord and Satisfaction (Exception)

Liquidated debt, gift, advance payment

Accord and Satisfaction (General)

Agreement and payment, unliquidated debts, less than full amount due

Pre-Existing Obligation

Does not require more money to finish on time, no new consideration

Past Consideration

No good, family-owned business deals

Auction with reserve

Auctioneer is offeree

Revocation

Effective upon reciept

Irrevocable offer

An option, offeror sells right to revoke for 90 days

Unilateral Offer

Acceptance by substantial performance

Counter offer

Rejection and modification, not mirror image

Lapse

Perishable goods, reasonable time, nature of situation

Expiration by own terms

Offer good until November5, 2015, 1:00 EST

Request for further information

Not a counter offer, not a rejection

Online Acceptance

Anne and E-Commerce Weekly case

Deposit acceptable rule

Acceptance when posted in U.S. Mail

Advertisements

Not an offer, goods not adequately described, no quantity terms

Implied Contract

Conduct, pay v. gift, "fill it up

Quasi Contract

Equitable, not a contract, remedy, prevent unjustifiable enrichment

Unenforceable contract

Legal defense against it, some must be written

Restitution

Like quasi contract, return what previously exchanged

Rescission

Equitable, annul the contract, one party wants out

Void Contract

Purpose of contract is illegal

Grounds for voidable contract

Minors and incompetents

Bilateral contract

Promises exchanged

Consideration

Money, something with value

Executory contract

Not yet performed

Ambiguity

Court sides with party not drafting contract

Necessities

Minor liable for reasonable /fair value not contract price

Usury

Federal law, charge too much interest, many exceptions

Adhesion Contract

Fairness, cannot modify, leases

Exculpatory clauses

Effective if consumer made aware and accepts, amusement park tickets

Racial covenants

Not enforceable in real estate

Covenant not to compete

Courts look at geographic location and time limitation and consideraton

License requirement

Quasi contract not a good defense, to protect public, electricians

Lucid interval

Valid contract results, competent status and rights

Minor

Under age 18

Upon reaching age of majority

Must ratify or disaffirm contract with reasonable time

Tantamount

Equal in weight

Respondent

The defendant in a lawsuit

Repudiate

Refusal to support or accept

Plaintiff

The complainant in a lawsuit

Jury-rig

To fabricate in a make-shift fashion

Egregious

Flagrant in nature

Devise

Gift of land in a last will and testament

Appurtenance

The swimming pool that goes with the sale of the house