Ch10 Flashcards
Know what a non-binding promise is what happens is someone breaks a non-binding promise
Non-binding promise: Not a contract
Nothing happens
Know what is required to make promises legally binding
There must be consideration
Each party must give each other something of value
Know the definition of an express contract
Uses words
Know the definition of an offer
Serious intent
Details
Communicated to the offeree
An offer (from the offeror) and an acceptance (from the offeree) form a contract
An offer (from the offeror) and an acceptance (from the offeree) form a contract
To have a valid offer (and thereby a valid contract) there must be clear intent to be bound by the offer.
To have a valid offer (and thereby a valid contract) there must be clear intent to be bound by the offer.
Know whether Advertisements are considered offers.
There are not, There are invitations
Know the examples of termination of offer by operation of law
Death
Know what the Caley v. Gulfstream Aerospace Court said that continued employment is valid consideration for a change in the employment contract
Continuative employment was consideration there was a contract
Know what the court decided in Universal Truckload, Inc. v. Dalton Logistics, Inc
There was not contract but Dalton could recover based on promissory estoppel
Consideration does not have to be equal or at market value to valid
Consideration does not have to be equal or at market value to valid
Contracts to commit a crime are illegal and therefore void
Contracts to commit a crime are illegal and therefore void
Know how a minor keeps a contract after they turn 18
They can affirm the contract
Know what would make a contract unenforceable
If the law change and made the subject of the law illegal after the contract was created
Know what an exculpatory agreement is
You are putting someone in danger and they must agree that they cannot keep you liable
Know what the Crowley v. Empire Fire & Marine Ins. Co. said about an insurance contract excluding coverage for accidents caused by intoxicated drivers
Perfectly fine they have that clause and the insurance company does not have to pay
What happens when one party makes an error in the contract, and the other party knows about the error, but does not say anything
A mutual mistake
Know what happens when there is a bilateral (mutual) mistake in a contract
It is voidable by either party
E-signing a contract is just as valid as signing it physically
E-signing a contract is just as valid as signing it physically
Why was there no quantum meruit for the Plaintiff in Jones v. Four Corners Rod & Gun Club?
The value of the fair market rent was higher than the labor he performed and he got everything he deserved
4 Elements to a Valid Contract
Agreement
Consideration
Capacity
Legality
Manifestation of Intent
Advertisements, negotiations are not offers because no clear intent
Mirror, Image Rule
Acceptance must be the same
By operation of law
Death or incapacity of offeror or offeree
Exculpatory
Digging out your liability
Void
Voidable
Valid
