Flashcards: Fundamentals of Contract Formation and Validity — 16 cards

Contract formation stages?

Becoming legally binding after agreement.

Offer vs invitation to treat?

Offer is proposal; invitation to treat invites offers.

Acceptance — form?

Unqualified agreement to an offer.

Counter-offer effect?

Rejects original offer, proposes new terms.

Timing clause — role?

Ensures contract performance within specified time.

Consideration — requirement?

Both parties must give something of value.

Promissory estoppel — purpose?

Prevents reneging on a promise without consideration.

Legal relations — element?

Parties intend legal enforceability.

Capacity — definition?

Parties must have legal ability to contract.

Formalities — purpose?

Ensure validity and enforceability of contracts.

Privity of contract — principle?

Only parties to a contract have rights and obligations.

Illegality — effect?

Can render a contract void.

Misrepresentation — requirement?

False statement of fact inducing contract.

Economic duress — impact?

Makes contract voidable due to coercion.

Undue influence — effect?

Contracts are voidable if obtained through abuse of power.

Void vs voidable?

Void contracts are invalid; voidable can be rescinded.