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Western Governors University *
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Course
LWC1
Subject
Law
Date
Nov 24, 2024
Type
Pages
2
Uploaded by KidRain12222
Contract law asks 2 questions:
Did the parties create a valid, enforceable contract?
What remedies are available when one party breaks the contract?
Offer
A manifestation of willingness to enter into a contract. If the terms of an offer are definite and
are accepted, a contract is formed. An offer can be withdrawn before it is accepted.
Acceptance
A manifestation of assent to all the terms of an offer, thus forming a contract.
Consideration
The requirement that a contract involve a quid pro quo or exchange of value. Without
consideration, a contract is not enforceable; therefore, a one-sided promise to give a person
money without requiring anything at all in return is not enforceable.
2 elements: whether promisee has incurred legal detriment, and whether legal detriment was
bargained for.
Quid Pro Quo
A Latin term representing something of value given or received in exchange for something else.
The doctrine of promissory estoppel
is invoked in the interests of justice when three conditions
are met:
The promise is one that the promisor should reasonably expect to induce the promisee to take
action or forbear from taking action of a definite and substantial character.
The action or forbearance is taken.
Injustice can be avoided only by enforcing the promise.
Promissory Estoppel
A legal doctrine that allows a person to recover in contract when a promise has been made and
that person has detrimentally relied on the promise. An example would be a promise to convey
real estate to a party in possession who has made substantial improvements to the property in
reliance on the promise.
Capacity
The requirement that individuals who enter into contracts have the legal competence to do so by
age and mental status.
Duress
Also referred to as coercion; in contract law, when a party’s assent to a contract is obtained by
force or undue pressure. It is a defense to a contract.
Fraud
The use of trickery or misrepresentation of facts to induce someone to assent to a contract. It is a
defense to a contract.
Undue Influence
The use of mental pressure to obtain a person’s assent to a contract, typically in a relationship
that can be exploited due to the weakness of one party and constituting a defense to a contract.
Void
Also referred to as void ab initio, the status of a contract that is not valid from the beginning, as
in illegal contracts.
Oral Agreement
A meeting of the minds that is expressed in spoken but not written words. An oral agreement that
meets the other requirements of a contract (legality, capacity, and consideration) is legally
enforceable unless it falls under the Statute of Frauds’ requirements for a writing.
Statute of Frauds
Legislation that requires certain types of contracts to be in writing such as a contract involving
real estate, a contract in consideration of marriage, a contract that cannot be performed within
one year, a contract to answer for the debt of another, a contract to make a will, or a contract
involving the sale of goods for $500 or more. There are certain exceptions to this requirement,
such as when performance has been completed or where there has been promissory estoppel.
2.2 contract remedies
Collateral
Security for a debt or loan taken by the lender to ensure repayment of a debt. An example is a
mortgage lien on real estate that gives the lender an interest in the property to ensure repayment
by the borrower of the loan. If the debt or loan is not repaid, the holder of collateral may execute
on the lien or mortgage and take possession thereof.
Compensatory Damages
A form of monetary award intended to make a victim whole by compensating the victim to place
him or her in the position he or she would have been in had the damage not occurred, and
nothing more.
Consequential Damages
Damages that occur from loss or injury that do not flow immediately or directly from the act of
the liable party but only from the consequences or result of the act. Typically, the law requires
such damages to be foreseeable in order to be compensable.
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