Cram Law Flashcards
3 Sources of contract law-
Common law- court decision precedent (statute)
UCC- Uniform commercial code(series of statutes that varies from state to state) streamlines the process of making a contract.
Court decisions- in the state (non statute)
UCC
UCC- Uniform commercial code(series of statutes that varies from state to state) streamlines the process of making a contract.
objective theory of contracts
intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person,
Elements of a contract
Agreement. An agreement to form a contract includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.
Consideration. Any promises made by the parties must be supported by legally sufficient and bargained-for consideration (something of value received or promised to convince a person to make a deal).
Contractual capacity. Both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties.
Legality. The contract’s purpose must be to accomplish some goal that is legal and not against public policy.
Defenses to enforceability of a contract
Voluntary consent
proper legal form
Unilateral contract
Bilateral contract
Unilateral contracts - promise money in the future, for an act in future (I hire lawn care service over a month and pay them at the end)- you agree by mowing my lawn for a month
Bilateral contracts- Promoce money in future for action in future (I pay you $10 for you to cut my lawn on monday)- You agree by making the promise (promise for promise) example one person agrees to buy another person’s automobile for a specified price. No performance, such as the payment of funds or delivery of goods, need take place for a bilateral contract to be formed. The contract comes into existence at the moment the promises are exchanged.
Executed contract
Excretory contract
Executed contract completed contract
Executory contract contract still in effect
Quasi contracts
Quasi contracts, or contracts implied in law, are not actual contracts. They are not true contracts because they do not arise from any agreement, express or implied, between the parties themselves. When the court imposes a quasi contract, a plaintiff may recover in quantum meruit, a Latin phrase meaning “as much as he or she deserves.”
Agreement requirements of an offer
There must be a serious, objective intention by the offeror.
The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.
The offer must be communicated to the offeree.
revocation
The offeror’s act of withdrawing an offer
mirror image rule
requires that the offeree’s acceptance match the offeror’s offer exactly
e-signature
has been defined as “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”
Agreements that lack consideration
Illusory promice
preexisting duty
past consideration
Promissory estoppel
the courts have some wiggle room to force people to keep promises in the interest of fairness
Unilateral mistakes-
Burden on whoever made the error
Contracts that must be in writeing
Selling land requires proof of ownership with writing and approval from the governing body
Any contract that cannot be completed in one year requires writing down
Collateral promises, “I promise eric is a good person he will pay back the car” requires written contract from the person voching for eric
Dowry and marriage requires writing
promissory Estoppel
Judge has wiggle room int the interest of fairness.
Conditions precedent-
You must be of sound health before the life insurance company will sell you insurance.
Conditions subsequent-
A law firm hires Julia Darby, a recent law school graduate. Their contract provides that the firm’s obligation to continue employing Darby is discharged if she fails to pass the bar exam by her second attempt. -This type of condition is the most rare
Concurrent conditions-
As long as you keep mowing my lawn every tuesday I will keep paying you. Either of us could stop the agreement at any time and the other would not have to complete theirs
Substantial performance
arty who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party
Performance to satisfaction of another
performance that would satisfy a reasonable person
mutual Resend
an agreement by both parties to end the contract
Novation
Substitute one party in a contract for anouther
Accord
parties mutualy agree to change the obligations of one party. I agree to let you mow my lawn on friday insted of the agreed tuesday. (If you fail to show friday I can sue you for breach of contract for not shoeing up tuesday.)
What can discharge a contract by law
Statuet of limitations- can limit contracts, sets sentences for breach of contract and torts, can get you out of contracts.
Bankruptsy- federal process usses state laws to determine what a bankrupt person is allowed to own. In texas you can go throuh bankrupsty and keep a 12million dollar house. Long and painful procces for hard workers- can be abused by poor.
Impossibility of performance
When performances is impossible- your obligations are discharged but it better be completley impossible(like act of god or country).
Temporary Impossibility
Commercial Impractibility- The price on the lumber I was transporting increased I will now be at a loss intead of a gain for transporting it. The lumber is no longer consideration because it has negative value to me.
Frustration of purpose- contract can no longer acheive its purpose
