Law I

Chapter 23: Contracts

Chapter 24: Warranties

Chapter 23

• Contracts

Key Terms

• 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

• 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.