Legal and Social Environment of Business
Popularity (by total correct streak): 29
Popularity (by number of users): 1
| Contract | a promise or set of promises for the breach of which the law provides a remedy (legal shorthand=K) | |
| 3 Elements + 2 Factors of a Contract | Elements: Offer, Acceptance, Consideration; Factors: Capacity, Legality | |
| 2 Categories of Contracts | 1)Express 2)Implied | |
| 2 Types of Contracts | 1)Unilateral 2)Bilateral | |
| Express Contract | manifests agreement either orally or in writing | |
| Implied Contract | created by conduct or behavior | |
| Unilateral Contract | one person makes a promise and the other party performs | |
| Bilateral Contract | one party makes a promise and the other party makes a promise in return | |
| Uniform Commercial Code (UCC) | a body of law that is not federal law, but is passed in every state in identical form, except Louisiana where they have Napoleonic law | |
| Goal of UCC | to reduce litigation by insuring predictability in contracts from state to state | |
| Capacity | possessing the ability to understand the nature and consequences of your actions | |
| Legality | contract is VOID if it is about an illegal thing/act | |
| Void | as if the contract never existed | |
| 3 Defects in Capacity | 1)Infancy 2)Mental incapacity 3)Intoxication | |
| Infancy | people under 18, minors (Contracts are VOIDABLE BY THE MINOR) | |
| Non-Voidable Capacity Exceptions for Minors | emancipated minors: 1)married--total non-voidable capacity 2)kicked out by parents--limited non-voidable capacity for NECESSARIES ONLY | |
| Necessaries | things you need to stay alive | |
| Ratification of Contracts | when a person turns 18, he/she can ratify contracts established when he/she was a minor | |
| Mental Incapacity | mentally retarded, mentally ill, dementia, etc. (can be difficult to prove) | |
| Intoxication | blackout drunk (most of the time this won't excuse actions/decisions) | |
| Offer | must be made in clear, unambiguous language, containing definite terms about material items | |
| 2 Options for Rejecting an Offer | 1)say no 2)counteroffer (either must be clear) | |
| Acceptance | the manifestation of assent to the terms of the offer, in the manner required by the offer | |
| Consideration | the benefit of the bargain or the bargain for exchange | |
| Charitable Pledges/Promises of Gifts | not enforceable because of lack of consideration for the giving party | |
| Past Consideration | not valid consideration for present agreements | |
| Hooters Toy Yoda Case | see notes | |
| Lucy v. Zehmer | Supreme Court of Appeals of VA, 1954 | |
| Two-Prong Test | 1)Objective Test (3 elements + legality) 2)Subjective Test (includes capacity--is there a meeting of the minds?) |
Quisition is a browser-based flashcard system that repeats old cards and introduces new ones at optimal time intervals. You can create your own card packs or use those developed by others.
