Final Exam Flashcards
Meyers V Mitnich
Barry and Robyn Custom engagement ring
when asked to sign a prenupt the marriage was called off
robyn would not return the ring
Michigan courts decided that fault is not a determining factor in who should get the ring
There was no precedence in michigan at this point
They determined that the gift is a conditional part of the marriage
old cases v modern cases
• Old cases
○ Donor breaks engagement does not get ring back
○ Mutual or donee breaks engagement ring goes to donor
• Modern cases
○ Fault doesn’t matter donor gets the ring back
Formal vs Informal
Formal
Executed vs Executory
Executed is a contract that is done and executory is a contract that has not been fully performed
Lucy V Zehmer
Lucy wants to buy farm from zeemer
Zehmer refuses to sell property
contract on a napkin “i bet you wouldn’t take 50,000 for the farm”
zehmer said it was in jest not believing that lucy could get 50,000 there was some drinking involved
Supreme court of virginia decided that there was serious intent because you have to actually express doubt not just say later that you didn’t mean it
Specific performance
Specific Performance
When you want the specific results from the contract not monetary damages because like in the case of lucy v zehmer he does not want his money back he wants the farm
Condidtion Precedent
things that need to be done before the contract is enforcable
Passing the bar before your contract to become a lawyer is valid
Condition subsequent
timing requirement defined by the terms of a contract that links one contractual obligation to the occurrence of some subsequent event. A condition subsequent refers to a continuing obligation to perform under the terms of a contract pending some event which will then terminate that obligation.
Fergus owns an executive placement firm, specializing in accountants. As part of his contact with each client, he agrees to work to place the client in a suitable position continuously, until such a time as the client is gainfully employed. The client’s gainful employment is a condition subsequent that releases Fergus from his contractual obligation to perform his placement activities.
Things that are not consideered contracts
Offers made in jest or undue excitement
• Expressions of opinions are not offers
• Preliminary opinions are not offers
• Advertisements are not offers but are invitations to negotiate
Statute of frauds
• Requires certain contracts to be in writing
○ Land
○ If contract cannot be performed within one year from contract formation
○ Promises made in consideration of marriage
Remedies at Law
Monetary remedies
Remedies in equity
Getting that specific performance
specific reformation
reformation
A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
Conditions concurrent
Fiona and Fergus have agreed that so long as Fergus does not spend his Sunday’s watching football on the television, she will continue to do his laundry. This is a condition concurrent.
Mitigation of Damages
- Required to minimize the damages suffered
- You have to mitigate the damages
- If someone skips town and does not pay rent and you can rent it less you should rent out the apartment to minimise the person’s damages
Sole Proprietoship
The simplest form of business organization, in which the owner is the business. The owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business.
Advantages:
Flexability to do whatever you want with the business
Pay taxes right from personal income tax
easy to from
Disadvantages:
Business owner assumes risk
Parternership
Governed by Common Law and statutory law
Similar to an agency relationship
based on a voluntary contract between two or more competent persons who agree to contribute financial capital, labor, and skill to a business with the understanding that profits and losses will be share
n agreement by two or more persons to carry on, as co-owners, a business for profit.
parternership can be formed oral written or implied by conduct
Uniformed Parternership Act
The National Conference of Commissioners on Uniform State Laws has drafted the Uniform Partnership Act (UPA), which governs the operation of partnerships in the absence of express agreement and has done much to reduce controversies in the law relating to partnerships
Pass Through Entity
A business entity that has no tax liability. The entity’s income is passed through to the owners, and the owners pay taxes on the income.
They only have to file and information return
Articles of Parternership
A written agreement that sets forth each partner’s rights and obligations with respect to the partnership.
Dissolution
he formal disbanding of a partnership or a corporation.
winding up
The process of disolving the parternership
The partnership exists only do wrap up all things necessary to end the business ie dealing with assets and liabillities
LLP
The major advantage of the LLP is that it allows a partnership to continue as a pass-through entity for tax purposes, but limits the personal liability of the partners.\
LLC
A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership.
Owners are called members
most states require 2 members
formation of LLC
To form an LLC, articles of organization must be filed with a state agency—usually the secretary of state’s office
