BUL 4421 Lecture Notes - Lecture 10: Contract, Quasi-Contract, Term Life Insurance
Document Summary
Contract a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. Agreement consists of an offer by one party, called the offeror, to enter into a contract and an acceptance of the terms of the offer by the other party, called the offeree. Consideration the bargained-for exchange or what each party gets in exchange for his or her promise under the contract. Contractual capacity the legal ability to enter into a binding agreement: most adults over the age of majority have capacity; those under the age of majority, people suffering from mental illness, and intoxicated persons do not. Bilateral contract a promise in exchange for a promise. As soon as the promises exchanged, a contract is formed and the parties" legal obligations arise. Unilateral contract requires performance in order to form a contract (i. e. a promise + a requested action).
