CONTRACT & SALES LAW
• STUDY GUIDE
• Acceptance: unqualified willingness to go
along with an offer
• An acceptance must follow the rules regarding
methods of acceptance: to be vaild and
unconditional
• Bilateral: a contract that contains a promise by
both parties
• Breach of contract: The failure of one of the
parties to do what he or she has agreed to do
• Capacity: the legal ability to enter a contract
• Case: an offer cannot be revoked by the
offeror, if the offeree has responded in the
same way that the offer was made and within
the agreed time
• Consideration: exchange of benefits and
detriments by the parties to an agreement
• Contract: an agreement enforceable by law
• Counteroffer: acceptance that changes the
terms of the original offer and terminates the
offer
• E-sign: is a federal law that permits the use of
electronic signatures and records
• Express: contract is stated in words and may
be either written or oral
Goods:
• the legal term for movable items such as
books, furniture, and clothing
• Implied: contracts people sometimes enter into
without exchanging a word
• Implied warranty: a guarantee
of quality imposed by law
and not in writing
• Limited warranty: is a warranty that provides
less than what is provided by a full warranty
• Magnuson-Moss Warranty Act: the law
requiring that written express warranties on
products costing more than $10 meet certain
requirements
• Merchant: A business or person
who deals regularly in the
sale of goods
• Most newspaper advertisements are
considered: invitations to negotiate
• Offer: proposal by one party to another party
to enter into a contract
• Offeree: an offer must be communicated
• Oral: a contract can be classified as valid,
bilateral, ____, and express
• Perjury: the legal term made under oath
• Real property: the legal term for land and
anything permanently attached to the land
• Rejection: a refusal of an offer by the offeree
that brings the offer to an end
• Sale: a contract by which ownership of goods
is shifted from seller to buyer for a price
• Statute of limitations: a law that specifies the
length of time within which a legal action may
be brought
The six elements of a contract:
•
Offer
•
Acceptance
•
•
genuine agreement
•
Consideration
•
•
capacity
and legality
• To fully understand the nature of contracts: we
must understand the elements that make up a
contract
• Uniform Commercial Code: is a collection of
laws that governs various types of business
transactions
• unilateral contract: a contract in which one
party makes a promise in exchange for an act
• Valid contract: a contract that is legally
binding and fully enforceable
• Void: a contract that amounts to nothing
and has no legal effect