GA Contracts Flashcards
Consideration
Met when nothing is received by the promisor, it is sufficient if there is a loss or disadvantage. Also doesn’t need to be a benefit accruing to promisor can be to another.
Statute of Frauds
Contracts involving the lending of money must be inwriting in order to be enforceable.
SOF doesn’t apply to contracts that are:
- of infinite duration
- terminable at will OR
- possible to be performed within a year
Equal Dignities Rule
Authority of an agent executing a contract within the SOF is required and must be in writing. If a contract is required by law to be in writing, the authority of an agent to execute the contract must also be in writing.
Interests in Land
Part performance will be sufficient to allow full performance of a contract for the sale of land under one of the following:
- the vendor accepted full payment
- the vendee is in possession of the property, as well as partial payment OR
- the vendee is in possession of the property, as well as valuable improvements that have been clearly proved to have been done with reference to the parol contract
Employment Contracts
Even if an employment manual describes termination procedures and lists the kinds of infractions that will result in termination, the employment agreement is still considered to be at-will and terminable by either party.
Noncompetition Agreements
Permitted so long as the restrictions are reasonable in time, geographic area, and scope. If the contract restricts competition after the term of employment or contains a nondisclosure of confidential info, to be enforceable the employee must have also solicited customers, sold products/services, been in management or otherwise a key employee.
Geographic Limitations
No geographic limitation need be called out if the restrictive covenant prohibits for a stated period of time solicitation of business from the employer’s customer with whom the employees had material contact while employed.
Restrictive Covenants
Presumptively reasonable if
- their duration is the same as the duration of the parties’ relationship
- the geographic scope includes areas in which the employer does business at any time during the parties relationship, provided the total area is reasonable and/or the covenant contains a list of particular competitors with which employment is prohibited AND
- the scope of competitive conduct is measured by the business of the employer
Post-Termination Covenants
Presumed reasonable if their duration are
- two years or less for former employees
- three years or less for former distributors or franchisees AND
- five years or less for sellers of a business
Promise to Pay a Loan
If a party promises to pay a loan within a reasonable time, the statute of limitations will not start to run until the date of demand, because the parties intended that the demand for repayment would be made at a future time.
Parol Evidence
Admissible in determining the parties’ prescribed method for fixing the final price when the final price wasn’t set, even if there is a merger clause.
Infancy
A person married with parental consent can be considered an adult at 16 or if the minor was emancipated by court order.
Remedies for Breach
No requirement for the mitigation of damages in lease contracts.
3rd Party Beneficiaries
It must appear that both parties to the contract intended the third party to be a beneficiary. The third party doesn’t have standing just because of indirect benefit.
Contract for Personal Services that Require Skill
The right to enforce the contract may be assigned to a third party without the other party’s consent after a party to the contract performs.
