| A | B |
|---|
| contract | Any agreement enforceable by law |
| Equity theory | Parties to a contract exchange things of equal value |
| Will theory | Did both parties agree to the terms? |
| Formalist theory | Did the parties “reach a meeting of the minds”? |
| Contract | Any agreement enforceable by law. |
| Revocation | taking back of an offer by the offeror, withdraw before it has been accepted |
| Consideration | exchange of things of value, one thing of value promised in exchange for something else of value |
| Legality | can’t involve illegal acts |
| Genuine Agreement | a valid offer met by a valid acceptance |
| Acceptance | agreement of the offeree to be bound by the terms of the offer |
| Offer | proposal by one party to another intended to create a legally binding agreement |
| Valid | contract that is legally good |
| voidable | a party is able to void or cancel a contract |
| Void | contract that has no legal effect |
| negotiable instruments | checks, notes, CD |
| executed | Has been fully performed by all parties to the contract |
| executory | The terms have not been fully carried out by all parties |
| unilateral | A promise by only one person to do something if the other party acts |
| bilateral | One party promises to do something in exchange for the other’s promise to do something else in future acts |
| quasi contract | Not a true contract |
| offer | A proposal by the offeror to an offeree to enter a contract |
| serious intent | Offer made with the intent of entering into a legal obligation |
| Mirror image rule | Acceptance must not change the terms of the original offer |
| counteroffer | Change in terms |
| UCC | Uniform Commercial Code |
| Capacity | legal ability to enter a contract |
