Law I
Chapter 23: Contracts
Chapter 24: Warranties
Chapter 23
• Contracts
Key Terms
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Contract
Breached
Offer
Acceptance
Consideration
Cosign
Ratified
Two More Terms
• Unconscionable
• Fraud
Contract
• A legally enforceable agreement between
two or more people.
Breached
• When a law, duty or other form of
obligation has been violated, either by
engaging in an action or failing to act.
Offer
• A definite proposal by one person to
another to make a deal or contract.
Acceptance
• The act of agreeing to an offer and
becoming bound to the terms of a
contract.
Consideration
• Something of value either offered or
received, constituting the main reason for
making the contract.
Cosign
• To sign a legal document, guaranteeing to
pay off the debt or contract if the original
signer defaults.
Ratified
• An act performed by you or someone else
has been confirmed.
• Ex: In order for the Constitution to
become the law of the land, ten (10) of the
original Thirteen (13) states had to have
ratified it.
Unconscionable
• 1. Unfair, harsh, oppressive.
• 2. A sales practice or term in a contract
that is so unfair that a judge will not
permit it.
Fraud
• Any deception, lie, or dishonest statement
made to cheat someone.
Chapter 24
• Warranties
Key Terms
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Warranty
Breached
Express Warranty
Puffing
Implied Warranty
Warranty of Merchantability
Warranty of Title
Two More Terms
• Warranty of Fitness for a Particular
Cause
• Disclaimer
Warranty
• A guarantee or promise made by a seller
or manufacturer concerning the quality
or performance of goods offered for sale.
Breached
• When a law, duty or other form of
obligation has been violated, either by
engaging in an action or failing to act.
Express Warranty
• A statement of fact or a demonstration
concerning the quality or performance of
goods offered for sale.
Puffing
• An exaggerated statement as to the
desirability of a product or service.
Implied Warranty
• The unwritten standard of quality the
law requires of products offered for sale.
Warranty of Merchantability
• An implied promise that an item sold is of
at least average quality for that type of
item.
Warranty of Title
• The seller’s promise that he or she owns
and may transmit title to the item being
offered for sale.
Warranty of Fitness for a
Particular Purpose
• A seller’s promise that the item sold will
meet the buyer’s stated purpose . The
promise is not spoken or written by the
seller, but it is implied by law.
Disclaimer
• A clause or statement in a contract or an
agreement that denies responsibility for
anything not expressly promised.