Exam 4 Prep Flashcards
Thor, laughing, told Loki that he’d sell him his hammer in consideration of $1. Thor was just joking as the
hammer was worth billions. Loki, also laughing, said “I accept.” This is
not a valid contract as there is no meeting of the minds or mutual assent.
Joker held a knife to Batman’s throat and told him “I’ll kill you on the spot unless you sign this contract!”
The contract called for Batman to turn over his Batmobile to Joker in consideration of $5. The Batmobile is
worth $10 million. Under these circumstances this is not a valid contract because
it is void due to duress.
Deadpool saved Black Panther from a trap that had been set to kill him by Erik Killmonger. In gratitude,
Black Panther told Deadpool: “Next time you come to Wakanda, look me up and I’ll give you a billion
dollars.” Deadpool happily said “I accept your contract, I could use the money.” If Deadpool stops Black
Panther the next time he passes through Wakanda, what duty does Black Panther owe him?
He owes no duty to pay him anything due to the rule of past consideration.
Avery advertised in the George-Anne classifieds: “Lost ferret, has collar, last seen near Seasons Apartments.
$250 reward.” This is a _____________ contract and it is _____________ once performance has begun.
unilateral, irrevocable
Teoni was offered a contract to work for Process Products. When she objected to a clause in the contract
which said that all parties waived the right to sue and agreed to submit their claims to binding arbitration,
the person interviewing her told her that Progressive would not alter the contract in any way. This contract
is a ___________ and if there is an ambiguity in the contract, it will be interpreted in favor of ___________.
contract of adhesion, Teoni
Gonzalez entered into a contract to lease an apartment for $500 a month. Under these circumstances, the
contract must be in writing because it
involves an interest in land.
McEnroe was hired by Tennis Star Camps, Incorporated (TSCI), to conduct a two-day tennis camp in
consideration of $50,000. He decided to take some time off after a busy schedule, so he determined that he
no longer wanted to do the camp. He arranged to have his friend Federer fill in for him to teach the camp.
Federer was a very famous tennis star and every bit as prominent as McEnroe. He was also one of the
premier experts at teaching tennis camps in the world. Under these circumstances
the duty cannot be delegated without permission of TSCI because this is a personal services contract.
Isabella purchased a car for her son Darnell’s 18 th birthday. She wanted it delivered to their house on his
birthday with a large bow on top. Under these circumstances, Darnell is an _____________ beneficiary and
he has ____________ to enforce the terms of the contract.
intended, the right
Jimmy Bob had entered into a contract with Johnna to repair her car in consideration of $1,500. Jimmy
Bob then got an offer to join the NASCAR pit crew of Chase Elliott. Jimmy Bob called his best friend and
fellow mechanic Carl and asked him if he could fix Johnna’s car instead. Carl agreed and Johnna agreed.
Carl would completely step into Jimmy Bob’s shoes, so to speak, and assume full rights and duties under
the contract. This is known as
novation agreement
Romero raced motorcycles for a living. He was sponsored by Yamaha on a one-year contract. While
practicing for the big race at Daytona, he wrecked his motorcycle and broke his leg and was unable to race
under his contract. Yamaha sued him for breach of contract. Under these circumstances this is
subjective responsibility and romeo is not liable to yamaha
Elements of Contracts
offer
acceptance
consideration
capacity
legality and public policy
Offer and Acceptance
for a contract to be valid, There must be a genuine offer and acceptance judged by a reasonable person’s standard
Offer and acceptance example
A person offers to sell a client a car for 5 grand; they accept and buy for that price.
Mirror image rule for offer and acceptance.
no material variation between the two. They must be identical or have no major difference that matters.
If a person buys the car for 4,999.99 instead of 5,000, what happens.
There is no mirror image. That is a counter offer. The seller has the choice whether to accept it or not.
If the buyer agrees to buy the car for 5k as long as it gets delivered, this is
Not the perfect mirror image as this would be another term thats added. May be a difference that matters.
Both parties must genuinely ______ to offer and acceptance
agree
Joking (even internally), jesting, anger and rash statements would not be considered as an
offer
If you breach a contract, you can get sued. This is called
Remedy; however, this is not always the case
You can revoke an offer ___ before you accept.
anytime
You cannot back out an offer if you
have purchased an option contract of value
To formally accept an offer, you must
sign it
Detrimental Reliance
The court pretends as if there was an actual contract, and say they rely on it reasonably, they can sue
The offeree can reject the offer, and
the offer no longer exists. But the offerer doesn’t have to renew it after rejected.
Consideration
Any contract must have a something for something exchange; Something for nothing doesn’t count since its a gift
Quid Pro Flow
latin term for Something for something; view it broadly
Examples of something for something
Doing a service for money, selling a car for money, etc.
In a something for something consideration, it does not have to be equal to count, for example
Ill give you my car if you smile at me
Past consideration does not count in a case because ____ therefore, you do not have to honor your offer.
it is an action someone did in the past before an offer was made. The person was merely offering a gift
If you offer to save someone for money, it is a valid contract because
It is not a past consideration.
If a fire fighter offers to put out a fire in consideration of the victim passing over there car, this is not consideration because
They had an preexisting obligation to put out the fire.
Capacity
all parties in contract must have capacity to enter it
Capacity example
People who are infant in the law(under 18), they dont fully have the capacity to enter in the contract
Voidable Contract
Ineligible people (infants) can have the power to make a non enforceable contract any time they want. As long its before 18
You as an infant want a brand for your breakfast cereal etc, this is a
Its a voidable contract unless you get your parents to sign or cosign. Cant be sued if contract is breached
If a person is too intoxicated to understand the contract,
the contract is voidable
If someone offers to buy a car for $50 by physical force, its a contract obtained under
Duress
Since you are certified insane, You scribble your name as your signature on a document. Since this is inconsideration of paperwork, this contract is
void
A contract to do something illegal is the the _________ as a contract to with someone insane. it is void
same
Public Policy
Courts have the power to void contract if it violates public policy
If a mother offers to giver her daughter a millions dollars to divorce her husband, but doesn’t divorce him and keep the money, the mother
would not win the case because the contract is against public policy and is void
Bilateral Contracts
Two parties exchanging promises; each have certain rights and duties under contract
Bilateral Contracts example:
I offer to sell you a car for 5k:
Right: receive 5k
duty: turn over the car
Unilateral Contract
One sided contract; one side making the offer.
Offer is accepted by action instead of promise
Unilateral Contract example
Newspaper of Lost dog, reward 5K;
You accept that contract by showing up with the dog
A teacher promises to give each of the class 10 dollars for running around the building. This is a _____ contract because the action is done
unilateral
A unilateral contract would turn into a bilateral contract if
there is negotiation. ex: counter offering
The offeror _______ retract the offer once the performance has begun
may not
