Aaron Notes

Question 1

Legal Contract

Answer 1

• Agreement (offer acceptance)
• consideration
• competent parties
• legal matters

Question 2

Restrictive Covenant

Answer 2

1. Restriction - must have a salutory business purpose
2. Restriction - cannot be overly broad - reasonable
3. restriction - must be reasonable in geographic scope
4. restriction - must be reasonable in time/duration employee <2 years

Question 3

Parole evidence rule

Answer 3

Integrated agreement (all terms are in this document)

Cannot use extrinsic evidence to change

except – ambiguity - can use parol evidence to clarify

Question 4

2 remedies

Answer 4

recission of contract - undo it

sue for fraud – recover differences

Question 5

Unilateral mistake

Answer 5

1 person makes mistake

No remedy for unilateral mistake

exception is clarical error - not enforce

• remedy for unilateral

Question 6

Consideration

Answer 6

Need to be paid for obligation to be enforceable

Bilateral - promise exchanged for promise

Unilateral - promise exchanged for act

Question 7

Requirements for consideration

Answer 7

1. Bargained for - intended by the parties
2. Legal Sufficiency - legal detriment to promise ; legal benefit to promisor generally both, not just economic terms
3. Mutuality - must support both parties obligations

*Adequacy or fairness is irrelevant, cannot be judged

Question 8

Ilusory promise

Answer 8

No contractual obligation on promisor, so not binding

except:

1. contracts with option to cancel - notice to exercise is legal consideration
2. best efforts provision - is legal consideration - reasonable standard

*preexisting obligations are not consideration for new