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Bus Law Chapter 9
Term | Definition |
---|---|
Promise | assertion that something will or will not happen in the future |
contract | agreement that can be enforced in court; formed by two or more competent parties who agree to perform an act now or in the future |
objective theory of contracts | theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person |
bilateral contract | type of contract that arises when a promise is given in exchange for a return promise |
unilateral contract | contract that results when an offer can be accepted only by the offeree's performance |
formal contract | contract that by law requires a specific form for its validity |
informal contract | contract that does not require a specified form or formality to be valid |
express contract | contract in which the terms of the agreement are stated in words |
implied contract | contract formed in whole or in par from the conduct of the parties |
executed contract | contract that has been completely performed by both parties |
executory contract | contract that has not yet been fully performed |
revocation | the withdrawal of an offer by the offeror |
mirror image rule | common law rule that requires that the terms of the offers acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed |
contractual capacity | threshold mental capacity required by the law for a party who enters into a contract to be bound by that contract |