Contracts Flashcards
1
Q
Cats and cupcakes
A
- Bert is cat of the day (feral cat)
- Ernie was a community cat, 16 years old; now a housecat
- Mason Cat Coalition
- Brooke, Julie’s cat is suing for breach of contract because she got orange and black fur instead of just orange
2
Q
quote by Roscoe Pound
A
“The social order rests upon the stability and predictability of conduct, upon which keeping promises is a large item.” – Roscoe Pound
3
Q
freedom of contract
A
- Courts do not like to interfere with contracts
4
Q
Meyer v. Mitnick - details
A
- Michigan courts, 2001
- Barry and Robyn engaged in Aug 1996
- Tried to enter into prenup in Nov 1996
- Lawsuit in Dec 1996
- Barry gave Robyn a custom designed engagement ring worth $20,000
- Robyn refused to sign a prenup
- Each party accuses each other of fault
- Robyn refuses to give back ring
- Barry argues that it was a conditional gift given in contemplation of marriage
- Robyn argues that it was an unconditional gift and that Barry broke off the engagement
5
Q
Meyer v. Mitnick - ruling
A
- Court decided that fault was not a determining factor
- No Michigan law specifically covers engagement rings
- Court looked at decisions of other state courts due to lack of precedent
- Court decided that an engagement ring should be considered a conditional gift
- Old cases (fault based system)
- If the donor unjustifiably breaks engagement, ring was not returned
- If by mutual agreement or fault by done, then ring was returned
- Modern trend (ring is inherently conditional)
- No-fault
- If engagement is broken, then ring goes back to donor
- Court found the reasoning of the no-fault cases persuasive
- “What fact justifies the breaking of an engagement? …”
6
Q
Merrill v. Trump Indiana (casino case)
A
- Mark Merrill and Trump Casino, 2003
- Federal 7th circuit
- Merrill alleged riverboat casino did not do what it was supposed to do to prevent him from gambling and subsequently robbing banks
- Merrill claimed that an oral contract was made between gambling counselor and casino
- Merrill claimed that he was on an eviction list kept by the casino
- Merrill claims breach of contract because of letter he wrote to casino
- Court ruled that his letter did not create a contractual agreement because the casino never promised to honor his exclusion request
7
Q
Castillo v. Tyson
A
- Tyson vs. Holyfield fight
- Tyson bit his ear off and was disqualified
- Plaintiff was fan that wanted his money back for the fight ticket, etc.
- Did the plaintiff have contractual privity?
- Court decided that there was no privity of contract
8
Q
Need four things to create a contract
A
-
Agreement
- Offeror – person who makes the offer
- Offeree – person who accepts the offer
- Consideration
-
Contractual capacity
- Cannot make a contract with someone that is mentally incompetent
- In most cases, if a minor enters into a contract, they are allowed to rescind
-
Legality
- Cannot enter into a contract to do something illegal
9
Q
types of contracts
A
- Bilateral
- Unilateral
- Formal vs. informal contracts
- Express (oral or written)
- Implied-in-fact – conduct creates and defines the terms of the contract
- Executed vs. executor
10
Q
bilateral contracts
A
- offeree must only promise to perform
- “promise for a promise”
- most common
11
Q
unilateral contracts
A
- offeree can accept the offer only by completing the contract performance
- “promise for an act”
- Uncommon
- Contingent upon doing something—if not done, then nothing happens
12
Q
Formal vs. informal contracts
A
- Logus sigilli (“place for the seal”)
- Formal contract requires a specific format
13
Q
express contracts
A
- oral or written
14
Q
Implied-in-fact contracts
A
- conduct creates and defines the terms of the contract
15
Q
Executed vs. executor
A
-
Executed
- a contract that has been fully performed on both sided
-
Executor
- a contract that has not been fully performed on either side
