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.