What Does a Legal Contract Constitutes of , Flashcards

A contract is a legally enforceable agreement between two or more competent persons.

A valid contract is one that is enforceable by the courts and it has five requirements:Mutual agreementCompetent partiesConsiderationLawful purposeAny formal requirements

All contracts are agreements, but not all agreements are contracts; only those agreements enforceable by law are contracts.

Valid contracts, void agreements, and voidable contractsExpress and impliedFormal* and simpleExecutory and executedUnilateral and bilateral *ln a formal contract, the letters L.S. after a name stand for the Latin Locus Sigilli, which means "the place of the seal."

A. A void agreement is one that is of no legal effect.

A voidable contract is one that may be set aside by at least one of the parties.

An express contract is one in which the parties express their intentions by words at the time of the agreement.

A formal contract is one that must be in a special form or be created in a certain way.

An implied contract is one in which the duties and obligations that the parties assume are not expressed but are implied by their acts or conduct

A simple contract is a contract other than a formal contract.

An executory contract is one in which the terms have not been fully carried out by all parties.

An executed contract is one in which the terms have been fully carried out by all parties.

A contract in which an act is done in consideration for a promise is a unilateral contract.

A bilateral contract consists of a mutual exchange of promises to perform some future acts. Each promise is consideration for the other.

A quasi contract is the imposition of rights and obligations by law when no real agreement exists.