Assess 1 X-tras Flashcards
Acceptance by mail must be
Properly dispatched by properly addressing it and taking other ordinary precautions to insure a safe transmission
Promise
A promise is a manifestation of intent to act or refrain from acting in a certain way
Agreement
A manifestation of mutual assent
Bargain
Agreement (a manifestation of mutual assent) to exchange promises or exchange promise for performance
Manifestation of mutual assent to exchange usually comes in the form of…
Offer and acceptance
May be made even though neither can be identified and formation is undetermined
Offer
Manifestation of willingness to enter into a bargain (an agreement to exchange promises or promise for performance)
Made to justify another person in understanding that his assent is invited and will conclude the deal
Contract
A promise for the breach of which the law gives a remedy
Benefit-Detriment Test
Is there a benefit received or detriment incurred by either party? (don’t need both)
(3) Pre-existing duty (ex. job) is ____ consideration
Not consideration
Bargain Theory
Was there a bargained-for exchange for the promise?
- Bargained-for performance or return promise. Performance may consist of act, forbearance, or creation/modification/destruction of a legal relationship.
Gift vs. Consideration-based promise?
Could the offeree have reasonably believed that the intent of the Offeror was to induce the action? If so, there is consideration.
a) General rule: a promise to make a gift in the future is unenforceable
b) Courts rarely enforce donative promises in a family setting
c) Bailey v. West: Horse care case.
Adequacy of Consideration
Economic value does not matter. If the item/promise/etc. is desired, it’s consideration. General rule-we don’t evaluate adequacy.
Requirements contracts
Buyer agrees to buy ALL IT WILL REQUIRE from the other party.
Outputs contracts: seller agrees TO SELL ALL that it manufactures to a buyer.
- These are supported by consideration
Moral Obligations and Past Consideration
General rule: A person who performs unrequested or voluntary services for someone else does not thereby acquire a right to compensation.
Exceptions: Doctors performing emergency services, volunteering to pay debt that expired under the Statute of Limitations
Benefit-Received Doctrine
Moral obligations plus a material benefit received can add up to valid consideration –> —a promise made in recognition of a benefit previously received is binding to the extent necessary to prevent injustice,
Gift
Could the offeree have reasonably believed that the intent of the Offeror was to induce the action? If so, there is May BE consideration. [ check promissory estoppel]
a) General rule: a promise to make a gift in the future is unenforceable
b) Courts rarely enforce donative promises in a family setting
Consideration - Pre-existing duty rule
No consideration when a promise is to perform a previously existing duty (like your job)
Consideration - Illusory promise
Essentially pledges nothing
Consideration - Requirements contracts
- Buyer agrees to buy all it will require from the other party.
- Outputs contracts: seller agrees to sell all that it manufactures to a buyer.
These are supported by consideration
-Forbearance is consideration -they gave up their right to buy or sell from or to another
Moral Obligations and Past Consideration
General rule: A person who performs unrequested or voluntary services for someone else does not thereby acquire a right to compensation.
i) Exceptions: Doctors performing emergency services, volunteering to pay debt that expired under the Statute of Limitations (reviving a debt)
Moral Obligations - Benefit-Received Doctrine
Moral obligations + material benefit received can = valid consideration
–> Restitution Damages
Rest 86: a promise made in recognition of a benefit previously received is binding to the extent necessary to prevent injustice,
UNLESS the benefit was conferred as a gift or for other reasons the promisor has not been unjustly enriched.
Promissory Estoppel (restatement)
Elements: Promise 1) Reliance in Fact 2) Foreseeable Reliance 3) Detriment to the promisee 4) Injustice can only be avoided by enforcement
Promissory Estoppel - Charity
(donations/promises to charitable organizations—churches, colleges, etc.).
Courts will generally apply the doctrine of promissory estoppel to enforce these promises, they normally don’t require evidence of reliance.
Implied-In-Fact Contracts
When conduct indicates assent or agreement, it is implied-in-fact.
Quasi Contracts - Implied-In-Law
When a person confers a measurable benefit on another, the person has acted with gratuitous intent and allowing the other to keep the benefit without paying is unfair.
Ex: If you show up to repair A’s house and start to work, accidentally, on B’s house and B sees you doing it and says nothing or If you realize that a benefit is being given to you, you should ask about it or you will be obliged to pay for it.
Manifestation of mutual assent to exchange usually comes in the form of…
Offer and acceptance
Preliminary negotiations
Manifestation of willingness to enter into a bargain is not an offer if the person to whom its addressed knows or has reason to know that the deal isn’t concluded until the offeror has made a further manifestation of assent
Formation of a contract
Requires an agreement (manifestation of mutual assent) to exchange promises (mutual intent to act/not act) for promise or performance
Manifestation of mutual assent to an exchange requires that…
Each party makes a promise or begins to render a performance
