H. contract
Agreement to do or not to do a certain thing
S. unilateral contract
Contract in which the offeror bargains for the performance of an act
as the
acceptance of the offer
B. bilateral contract
Contract in which the promises mutually exchanged by each party
constitute the consideration for the contract
D. competence
Element of all valid contracts that requires the parties to be over
18, of
sound mind, and not deprived of civil rights
N. minor
Person under the age of 18
P. offer
Proposal indicating a present intent by the person making the
proposal to
be bound by a contract
K. lapse of time
Way an offer is deemed to be terminated because the offeree failed to
respond within a reasonable period after the offer
A. acceptance
Manifestation on the part of the offeree to agree to the terms of an
offer
unconditionally
I. counteroffer
Response to an offer that changes some term of the offer
M. mailbox rule
Exception to the rule that an offer must be communicated to an
offeree,
making an acceptance binding upon deposit in the U.S. Mail
G. consideration
Any benefit conferred upon the promisor in a contract that will
support
the formation of a contract
T. valid contract
Contract with all required elements and is therefore binding and
enforceable
Q. parol evidence
Oral statements made during the negotiation of a contract that are
“merged” into a written agreement upon its execution
F. condition subsequent
Event, which if it occurs, excuses one party from further obligations
to
perform under a contract
E. condition precedent
Something that must happen before one party to a contract is
obligated to
perform
L. liquidated damages
Term in a contract by which the parties agree that if one party
breaches
the agreement, their liability is limited to a specific amount
O. mutual rescission
All parties to a contract agree to cancel the agreement and put
themselves back where they started
C. breach
Failure by one party to comply with his or her obligations under a
contract
R. statute of limitations
Time limit for someone to file a lawsuit or be forever barred from
enforcing a legal right in court
J. laches
Flexible time limit within which someone must seek an equitable
remedy
from a court