Contracts Overview

A patient cannot claim damages for a doctor's failure to achieve a promised result unless explicitly stated in the contract.

The difference between the value of the promised result and the actual result in a breach of contract case.

Damages that a breaching party should have known could result from the breach at the time the contract was made.

Failure to fulfill the terms of a legally binding agreement.

A standard used to decide if a party made an offer in an enforceable contract.

Damages awarded to a party who relied on a contract and suffered losses due to the breach, even if expectation damages are lower.

The process of creating an enforceable contract based on a reasonable understanding of agreement.

Remedies for the violation of contract terms, which might include the difference in value between the promised result and the actual result.

Advertisements are generally not considered offers, but invitations to negotiate. They lack the necessary definiteness and intent to be considered binding contracts.

A promise in exchange for an act. A unilateral offer can be withdrawn before the act is completed.

In contract law, whether a reasonable person would have understood a statement or action as an offer.

A document outlining the general terms of an agreement, but not intending to be a legally binding contract.

Both parties agree to the same terms. The court needs evidence of this.

A legally enforceable agreement between parties with mutual assent fulfilling the requirements of a contract.

The act of taking back an offer before it's accepted.

A bare promise, not legally binding.

When two businesses exchange different terms in their purchase order and acknowledgment forms, resulting in conflicting contract terms.

Terms that are not part of the original offer but are included in a written confirmation sent by one party.

An additional term that significantly changes the original contract's terms.

A party who regularly deals in goods of the kind involved in the contract, has knowledge or skill peculiar to the practices involved, or employs an agent who has such knowledge.

A written document that confirms the terms of a contract, often sent after an oral agreement.

An informal agreement made verbally that is later confirmed in writing by one of the parties, but the confirmation may include additional terms.

Acceptance of an offer contingent on specific conditions, such as acceptance of additional terms.

A type of warranty or license agreement printed on the outside of a product's packaging.

A contract where the quantity is measured by the buyer's needs or the seller's output. Good faith is required, and quantities can't be unreasonably disproportionate.

A valid requirements contract needs a fixed quantity (even if indefinite) and mutuality (both parties agree to the terms).

Refusing to fulfill a requirements contract based on unfavorable circumstances is not valid. Good faith reductions are allowed, but can't be unreasonable.

A definite acceptance, even with additional terms, is still an acceptance, unless the acceptance is expressly conditional on agreement to the new terms.

If the parties' writings don't establish all terms but their actions show a contract exists, the contract terms are based on the agreed parts.

In contract law, an express acceptance is explicit, while an implied acceptance demonstrates assent through actions.

A defense to a contract breach, claiming fulfilling the contract is too expensive.

A court order requiring a party to fulfill the contract promises.

Something of value exchanged between parties in a contract, ensuring fairness and mutuality. It can be a promise, an act, or a forbearance.

A moral obligation (feeling like you should do something) is not enough for a contract. There must be a legal duty or enforceable agreement.

A promise to do something you are already legally obligated to do isn't enough consideration for a new contract.

A benefit received by the promisor that is significant and substantial, which can constitute consideration for a promise.

Situations that are expected or likely to occur within the scope of a contract, which may not justify additional compensation.

A test to determine if there was a meaningful exchange between parties in a contract, ensuring fairness and mutual benefit.

A promise is enforceable if it is supported by consideration, which means a legal benefit to the promisor or a legal detriment to the promisee.

The court ruled in favor of Webb because McGowin received a material benefit (being saved from serious injury) and Webb suffered a legal detriment (sustaining significant injuries) through his actions. This constituted valid consideration for McGowin's promise to pay him.

When a party, before performance is due, indicates they will not perform their contractual duty.

A breach of contract that significantly affects the contract's purpose or value. It allows the injured party to terminate the contract.

Damages awarded to restore a party to their pre-contractual position. They are often given when the contract is rescinded.

Damages awarded to put the injured party in the position they would have been in had the contract been performed.

A buyer's right to cancel a contract after initially accepting goods, if there is a significant nonconformity.

A false statement of material fact made during contract negotiations that induces the other party to enter the contract.

A factor that contributes significantly to a party's decision to enter a contract.

A clause in a contract that states all prior agreements or representations are superseded by the final written contract.