Exam 2 (6-11) Flashcards
What is a contract
An agreement the court is willing to enforce
What are the elements of a contract
Agreement
Consideration
Capacity
Legality
It does not have to be in writing
Can one party cancel a contract without the consent of the other or is a deal a deal
Under common law a deal is a deal
Sources of contract law
Common law of contracts
Restatement of contracts
Uniform commercial code
What is the restatement of contracts
Summarizes the common law of contracts
Not binding on judges
Not actual law
Uniform commercial code
State statutory law
All states adopted
Relates to contracts through article two that refers to sale of property
What are bilateral contracts
Two components to the contract
A promise for a promise
What is a unilateral contract
Promise for an act
You accept the contract when you perform act
What is an expressed contract
And what what is an implied
Terms are explicitly said
While others is
Implied
What is an executory contract
And what is an executed
An executory means it isn’t done yet
While the executed means it is complete
What is a void contracts and what is a voidable contract
Void means not valid
Voidable means valid at first but can be canceled
What is the offer
The expression of a willingness to enter into a legally binding agreement
What are the three requirements of an offer
Intent Legal intent Communicated Parties are informed Definite Cannot be unclear
Lucy v zehmer
A person if judged by the outward manifestation of content not by any secret intent or any unstated intent
Are advertisements offers
No
What are the different terminations of an offer
Communicate revocation to the offeree
Rejection by the offeree
Counter offer by offeree (terminate original offer)
Lapse time (expiration of offer)
What if there is a promise to keep the offer open,
Can the offeror communicate the revocation
Yes he can revoke anytime
A promise to hold an offer open is not legally binding
Rules considering acceptance of offer
Unequivocal-Mirror image rule - no new conditions/cannot change terms
Has to be communicated: mailbox rule- it is accepted once it is mailed
Pre existing duty rule
It is not considered if you merely promise to do something that you were already obligated to do
The past consideration rule
If you already saved their life
What is a consideration
The price a person charges for promise
Doesn’t have to be fair or adequate just has to be bargained for
Liquidated debt
The amount is known, there is no consideration, there is no dispute
Unliquidated debt
Not sure how much is owed, agree on a random amount, there is a dispute
Promissory estoppel
Exception: if A makes a promise, knowing it I’ll be relied upon, then there is a legal obligation to enforced
Minors capacity for contacts
Contracts for minors can be voidable until they become legal ages
Capacity for contact for insanity
Possible to make voidable but it is a very hard defense
Capacity for intoxication good defense
Sobriety test is only for driving, not for contracting only for driving
Legality contracts to commit crime
Sale of illegal goods
Illegal payments to a public official
Payments to a “hit man”
Gambling contracts
Gambling contracts are not enforceable by way of action or defense
The court will leave the parties where it finds them
In pari delicto — equally at fault
Fantasy football legal?
On a state to stay basis
Failure to obtain a license required by law: only if regulatory
Regulatory
If you don’t have the license you cannot collect fees
Excultpatory clauses (waiver/disclaimer)
You are at your own risk
Maybe legally enforceable
Non compete clause
Covenant not to compete
Means they are claiming you cannot go and work for a competitor for a certain amount of time
Basic rules: it is limited
Limited to amount of time
Limited to area
Does not go further to where the competition is
Non compete clause is invalid when
Too broad
Or area of contract is changed by court
Blue penciled
Statute of frauds
Sale or mortgage writing is required
Contract that cannot be completed in a year (impossible)
Promise to stand behind debt of another (co-sign)
Sale of things greater than 500 (not service) must be in writing
Satisfy a statute of frauds
What terms must be in writing
- only enforceable to person signed it
Who must sign it
The parol evidence rule
- all writing in control no verbal agreement acknowledge
Voluntary consent considering mistake: unilateral v bilateral
Has to be a mutual mistake to make it void
Voluntary consent regarding fraud
Fraud - deliberate statement that is false
No general duty to speak
Who has duty to speak
If you are the seller of the house and you are selling it yourself (you don’t have duty to speak)
If you are realtor you have a disclosure form where you answer questions from
Voluntary consent regarding misrepresentation
They get their money back but more then that
Voluntary consent in regarding to undue influence
One person has taken advantage of another in a contract
Voluntary consent regarding
Duress
A threat of force
Cause a person to be unable to engage in fee will
