LEGL Test 2 Review

Question 1

Property

Answer 1

Legal right to exclude others from resources that are originally possessed or are acquired without force, theft, or fraud
- Known as Legal Fence

Question 2

Boundaries can be…

Answer 2

Ambiguous
- Use courts to assist

Question 3

Bundles of Rights for Property

Answer 3

i. Right to exclude
ii. Right to possess
iii. Right to use
iv. Right to sell
v. Right to control
vi. Right to gain income

Question 4

Private Property System

Answer 4

State recognizes and enforces an individuals’ rights to acquire, possess, use, and transfer scarce resources
1. The people determine how resources are distributed.

Question 5

Real Property

Answer 5

Land and interest in land (includes Buildings)

Question 6

Personal Property

Answer 6

All moveable resources
i. Divided into Tangible (physcially touched) and intangible (intellectual copyrights)

Question 7

Defining Land

Answer 7

Land ownership consists of more than the surface of the property

Question 8

Air Rights

Answer 8

i. Owner of real property possesses the air above the land to a certain extent
1. Air Rights
ii. Can be sold to another for development. What does this mean?
1. For cell towers, for development; purchase someone air rights to not block a person view in a Highrise

Question 9

Subsurface Rights

Answer 9

i. Landowner owns the liquids, gases, rocks, and minerals beneath the land
ii. Can be separately sold to another
iii. Rule of Capture: If it flows naturally, a person has rights over it. A person cannot use machinery to manipulate the resource and change it to another’s side. Can use it only to touch my side not another person’s property
be physical intrusion

Question 10

Briggs v. Southwestern Energy Production Co

Answer 10

Subsurface Rights: Company trying to extract gas from an adjacent property using machinery. Can use machinery if it doesn’t touch the adjacent property there can’t be physical intrusion

Question 11

Fixtures

Answer 11

Personal Property that has converted into real property from attaching the object or fixture to the real property.
CAN NOT TAKE these fixtures when real property is sold; unless written in contract and signed by everyone
EX: Celling Fan, Chandelier, Built in bookcase, decorative pillar

Question 12

Life Estate

Answer 12

Grants an ownership in land for the lifetime of a specified person

Question 13

Reversion Interst with Life Estate

Answer 13

If the Land reverts to the original grantor upon the death of Sally, the original grantor has a reversion interst

Question 14

Remainder Interest with Life Estate

Answer 14

If the property goes to someone other than the original grantor upon Sally’s death, that person has a remainder interst

Question 15

Future and Present Interest

Answer 15

• Reversion and Remainder property interests in life estate ownership are called future interests.
• Whereas a Life Estate is a present interest. Why? Curretnly have rights to that property

Question 16

Leasehold Estate

Answer 16

i. Property right granted to tenants by a landloard
1. Land can be leased for a definite duration (ie 2 years) or an indefinite duration
2. Tenants have a qualified possession, use, and transfer of the land
3. Can’t waste the land/reduce the value
a.Ex: Punching a hole in the wall in an apartment

Question 17

Concurrent Ownership

Answer 17

More than one person that owns property

Question 18

Joint Tenancy

Answer 18

i. Must be equal
ii. Rights of survivorship
iii. Can be partitioned

Question 19

Easement

Answer 19

a. Right of someone other than the owner to cross/use the land
b. Ways of acquiring
i. Buying directly from a titleholder or reserved in a deed

Question 20

Natural Easement

Answer 20

If property is landlocked and no access to public road, asking for permission to use their driveway to gain access to the public roads

Question 21

Negative Easement

Answer 21

Asking another to not do something on their property that would have a negative impact on your property

Question 22

Easement by Presciption

Answer 22

Using a person property openly, wrongfully(without permission) , and continuously (typically 20 years) then granted to use the other person property and they cannot stop you

Question 23

Bailments

Answer 23

i. Goods placed into another’s possession to be returned in the future.
ii. Bailor= owner
iii. Bailee= possessor of the object
iv. Key Question: Did the bailee intend to take possession of the object?

Question 24

Type of Bailment: For the sole benefit of the bailor

Answer 24

a. Slight duty of care.
b. EX: Storing my car at the friends while I am on vacation

Question 25

Type of Bailement: Mutaully Beneficial

Answer 25

a. Reasonable duty of care.
b. EX: Renting a car

Question 26

Type of Bailement: For the sole benefit of the bailee

Answer 26

a. High duty of care.
b. Ex: Borrowing a lawnmower

Question 27

Rule of first possession

Answer 27

first to take possession of previously unowned items becomes their rightful owner.

Question 28

Abandoned Property

Answer 28

The first person to take possession of an abandoned item becomes its owner—did the original owner intend to abandon the property?

Question 29

Lost Item

Answer 29

The finder becomes the owner by taking possession of the item and following a legal procedure, even though the original owner did not intend to leave the item behind.

Question 30

Mislaid things

Answer 30

Must be given to the owner of the premises where the item was mislaid
* person intend

Question 31

Adverse Possession

Answer 31

Grants ownership of land under state law when possession is:

Question 32

Adverse Possesions Elements

Answer 32

1. Open and notorious : Not hiding
2. Actual and exclusive: Only person using the property
3. Continuous:
4. Wrongful: Without permission
5. For a prescribed period of time: typically 10-20 years

Question 33

Confusion

Answer 33

The process outlined involves the mixing of fungible (interchangable) goods, where owners share ownership proportionally if the mixing happens by honest mistake. To determine ownership:

Record Keeping:
If records are available, the goods are divided based on those records.
If no records exist, the goods are divided equally among all owners.

Intentional Wrongful Confusion:
If the mixing was done intentionally, ownership of the goods is granted to the innocent party.

Question 34

Accession

Answer 34

Something that is added

Question 35

Law of Accession

Answer 35

When people apply efforts to any raw material and change its nature into finished products, they own the finished products

Question 36

Gift

Answer 36

Gift does not take place until the donor:

INTENDS to make the gift
DELIVERS the gift by physical transfer to the done

Question 37

Constructive Delivery

Answer 37

Keys are representation of a car as you cannot physically give a car

Question 38

ii. Testamentary gif

Answer 38

gift through a will
*Not complete until donor’s death

Question 39

Title

Answer 39

Document registered with the state for certain types of personal property that represents ownership

Question 40

Deed

Answer 40

Document of title that transfers ownership of land

Question 41

Type of Deed: Warrenty Deed

Answer 41

i. promises the grantee that the grantor has good ownership and the full power to convey it.
ii. Buyer can sue the seller if someone else claims the land.

Question 42

Type of Deed: Special/Limited Warranty Deed:

Answer 42

i. Limits the liability of the grantor/seller
ii. Does not hold the grantor liable for what happened prior to his or her ownership
1.No guarantee against title defects dating from previous owners
iii.Current GA Real Estate Contracts call for a Limited Warranty Deed

Question 43

Quitclaim Deed

Answer 43

Makes no guarantees other than that the grantor surrenders all claim against the land.

Question 44

What happens when deed is not recorded…

Answer 44

The person does not legally own the property

Question 45

Security Deed

Answer 45

A pledge of real property to secure repayment of a loan. Used in Georgia. Only between the Lender and Borrower. GA is nonjudicial foreclosure state.

Question 46

Foreclosure

Answer 46

The process by which a creditor enforces its secured interest in property when the owed obligation is not fulfilled, typically through a public sale
*lender takes possession of a property and sells it to recover a debt owed by the borrower

Question 47

Foreclosure: Judicial vs. Non-Judicial Foreclosure

Answer 47

Judicial: lender is required to go through court for foreclose
Non-Judicial: Doesn’t have to go through

Georgia is a Non-Judaical Foreclosure State

Question 48

Foreclosure: Deficiency

Answer 48

Balance owed by the debtor to the creditor (mortgagee)

Question 49

Right of redemption

Answer 49

Allows mortgagor to get back land upon payment of the full amount of the debt, including all interest and costs

Question 50

ARTISAN’S LIEN

Answer 50

i. Arises when someone contributes parts and/or services to personal property and is not paid
ii. The lien is possessory

Question 51

Mechanic’s Lien

Answer 51

i. Arises when someone contributes materials and/or services to real property and is not paid
ii. NOT possessory, only has priority if it is perfected by written notice

Question 52

Nuisance

Answer 52

i.Public Nuisance
-Arises from use of land that causes inconvenience or damage to the public

Question 53

Private Nuisance

Answer 53

1.Unreasonable use of one’s property to cause substantial interference with the enjoyment or use of another’s land
a.Only a public official can bring a claim for a public nuisance on behalf of the public
b.Already occurred and no asking court for remedy

Question 54

Zoning

Answer 54

Laws that divide counties into use districts designated residential, commercial, or industrial

Question 55

Zoning limits the use to which land can be put to that specified

Answer 55

Land Use: Only specified uses are allowed (e.g., industrial facilities cannot be built in residential areas).
Building Specifications: Zoning can dictate the height, size, number, weight, and location of buildings permitted on the land.
Aesthetic Requirements: Zoning may also impose guidelines for appearance, such as building color and exterior design.

Question 56

Zoning: Variance:

Answer 56

Allows for use of land in a way that is not permitted under current zoning

Question 57

Does a contract have to be in writing to be enforceable?

Answer 57

No, Verbal contract are just as enforceable

Question 58

Contracts

Answer 58

Legally enforceable promise or exchange of promise
-Enables buyers and sellers to account for future risks or have confidence in exchanging valuables

Question 59

Sources of Contract Law

Answer 59

Legislation:
-Uniform Commercial Code (UCC): Governs contracts related to the sale of goods (tangible, movable items).
-Contracts for Goods: Fall under the UCC.

Common Law:
-Based on judge-made decisions.
-Governs all other types of contracts not related to the sale of goods.

Question 59

Bilateral Contracts

Answer 59

1. An Agreement of mutual promises
2. Both parties have a duty to perform when the contract is formed

Question 60

Unilateral Contracts

Answer 60

1. An agreement with only one promise and in exchange for performance
2. Only one party is obligated to perform
   a. EX: Lisa promises to pay Olaf $1000 if 100 units are sold at the end of the year and Olaf’s right to receive the money if he performs

Question 61

Express Contracts

Answer 61

1. The parties show their agreement in words (written or oral).
2. The parties discuss the promised terms of their agreement

Question 62

Implied-in-fact Contracts

Answer 62

Arises from the conduct of the parties rather than from words

Question 63

Implied-in-law aka Quasi-Contracts

Answer 63

i. Judicial remedy to prevent one party from receiving unjust enrichment
ii. Remedy applies when no actual contract exists to cover the dispute

EX: You owe a credit card company $100, but you send them $200. If they keep the extract money they are unjust enrich so they reimbur you

Question 64

Contractual Terminology

Answer 64

a. Valid: all required elements are met
b. Enforceable: agreement will be upheld in court
c. Unenforceable: a party had a justifiable reason for not performing
d. Void: agreement lacks an essential element
e. Voidable: at least one party can withdraw and make the contract void

Question 65

Contractual Performance: Executed Contract

Answer 65

Parties have performed their promises

Question 66

Contractual Performance: Executory Contract

Answer 66

Parties have not yet performed their agreement

Question 67

Elements of an Enforceable Contrac

Answer 67

a. Offer to enter into a contract
b. Acceptance of the offer
c. Consideration for each promise
d. Capacity of each party to enter into a binding agreement
e. Legality

Question 68

Offer to Contract

Answer 68

a. Contains a specific promise and a specific demand
b. Offeror must intend to make the offer by making a commitment to the offeree
i.TEST: Courts measure intent from a reasonable person’s perspective in the position of the offeree. This standard is known as the objective standard rather than the subjective intent of the offeror
c. General Rule: Contractual terms must be definite and specfic in order to be enforceable
i. Exception: Sale of Goods (UCC)

Question 69

Termination of an Offer

Answer 69

a. Revocation: Offeror revokes offer *Only prior to acceptance
b. Rejection: offeree rejects the offer
c. Counteroffer: offeree makes a counter proposal
d. Lapse of time: Offer expires as it reached over a reasonable time limit
e. Subject Matter Destruction: Object is destroyed
f. Offeror Death or Insanity:
g. Subject Matter Illegality

Question 70

Acceptance of an Offer

Answer 70

a. Acceptance of an offer is necessary to create a valid, enforceable contract
i. Bilateral contract is accepted when offeree has made the required promise
ii. Unilateral contract is accepted by performing a requested act (not by making a promise)

Question 71

Statute of Frauds

Answer 71

The Statute of Frauds mandates that certain contracts must be in writing to be enforceable. These include:

1. Types of contracts requiring writing:
   Sale of an interest in land
   
   • Collateral promise to pay another’s debt
     -Contracts that cannot be completed within a year
     -Sale of goods over $500 (UCC)
     Exception: Specially manufactured goods
2. State requirements:
   -Some states require the actual contract to be in writing.
   -Other states allow a written note, memo, or document signed by the party being sued to suffice, even if it’s not a formal contract.
3. Merchant exception: In contracts between merchants, the writing does not need to be signed by the party being sued.
4. Exceptions to the writing requirement:
   -Part-performance: For land sales, part performance, like making improvements, can eliminate the need for writing.
   -Specially manufactured goods: Custom-made goods must be paid for even without a contract in writing.
   -Partial or full performance: Completing part or all of the contract can override the need for written documentation.
   -Judicial admission: If the party being sued admits to the existence of the contract, writing may not be necessary.

Question 72

Lack of Meeting of the Minds

Answer 72

a. Fraud
b. Mistake
i. Mutual Mistake
ii. Unilateral Mistake
c. Duress
d. Undue Influence

Question 73

Fraud

Answer 73

i. A misrepresentation of fact with the intent to deceive that a party justifiabliy relies on and results in injury
ii. Remedy: The defrauded party has the option to void the contract OR may enforce the contract and sues for damages resulting from the fraud (including punitive).

Question 74

Innocent Misrepresentation

Answer 74

i. An unintentional misrepresentation of fact that a party reasonably relies on, resulting in harm.
ii. Remedy: The injured party may choose to void the contract.

Question 75

Mistake: Mutual Mistake

Answer 75

i. Both parties are mistaken as to some fundamental/material aspect of the agreement.

ii. Remedy: Rescission by either party

Question 76

Mistake: Unilateral Mistake

Answer 76

i. One of the parties to a contract is wrong about a material fact

ii. Remedy: Usually none

Question 77

How Does a Court determine Materiality?

Answer 77

i. Test: Whether the parties would have contracted had they been aware of the mistake

ii. Note: The mistake must be one of fact

Question 78

Duress

Answer 78

a. Action that compels another to do what he or she would not otherwise do
b. Duress means force or threat of force
i. Threat can be physical or economic

Question 79

Undue Influence

Answer 79

a. When one is taken advantage of unfairly by a party who misuses a position of relationship or legal confidence

b. EX: Often arise when persons weakened by age or illness are persuaded to enter into a disadvantageous contract. People in a special relationship of power or trust may also exert undue influence

c. Remedy: Contract is voidable

Question 80

What Controls?

Answer 80

Handwritten  Typed  Pre-printed Terms/Forms

Question 81

Parol Evidence Rule

Answer 81

Rule: In a fully integrated written contract, parties cannot present evidence of oral agreements made at or before the contract’s signing that would alter its terms.

When is evidence of oral agreements permitted?

i. Oral modifications made after the written contract may be admitted.
ii. Evidence clarifying the meaning of terms may be allowed.

Question 82

Duty of Performance

Answer 82

Performance required by the other party as promised in the contract

Question 83

Discharged

Answer 83

Occurs when the party is relieved from all further responsibility of performance

Question 84

Condition of Performance: Condition Precedent

Answer 84

Something (a condition) must take place before a party has a duty to perform

Question 85

Condition of Performance: Condition Subsequent

Answer 85

Excuses contractual performance if some future event takes place

Question 86

Condition of Performance: Express Condition

Answer 86

Explicitly mentioned in the contract governing performance

Question 87

Condition of Performance: Implied Condition

Answer 87

Not explicitly mentioned but can be read into the parties’ obligation to perform

Question 88

Condition of Performence: Concurrent Condition

Answer 88

Parties have a simultaneous duty of performance

Question 89

Payment & Delivery of Goods (UCC)

Answer 89

1. P ayment: If the contract doesn’t specify terms, the buyer’s payment is a condition that must be fulfilled before the seller is obligated to deliver the goods.
2. Delivery: When the contract lacks specifics on delivery, the UCC provides default rules:
   The buyer is expected to arrange pickup at the seller’s designated location.
   If the contract states goods will be shipped to the buyer without further details, the seller satisfies their obligation by shipping the goods in a commercially reasonable manner.

Question 90

Level of Performance : Complete Performance

Answer 90

i.Definition: Everything required under the contract has been done.

ii. Performance Level: A party that performs completely is entitled to complete performance by the other party and may sue to enforce this right.

Question 91

Level of Performance : Substantial Performance

Answer 91

i. Definition: Less than full performance but greater than significant performance

ii. Performance Level: The other party is required to perform and may sue for damages resulting from the breach.

EX: Contractor hasn’t completed all the landscaping by the due date (Jan 20) but finished the building. He doesn’t finish landscaping till FEB 1.

Question 92

Level of Performance : Material Breach

Answer 92

Definition: The performance is severely lacking or entirely absent.

Performance Level: The other party is excused from their obligations and may pursue damages.

Question 93

Excuses for Nonperformance: Force Majeure

Answer 93

• only one that needs to negotiated into the contract

i. Must be negotiated into the contract. *If earthquake occurs, excuse your obligation to perform
ii. Excuse or delay a party’s obligation to perform if a certain extreme event occurs
iii. The event must be outside of either party’s control and not foreseeable

EX: Natural Disasters (hurricanes, floods, earthquakes, pandemics), Political Turmoil(strikes, terrorist attacks, war)

Question 94

Excuses for Nonperformence: Impossibility (Common Law)

Answer 94

i. Performance is illegal or physically (impossible)
ii. Higher Standard

EX: Subject Matter of contract destroyed (sell 10 cows and fire occurs where cows are deceased and subject matter is destroyed), Person promising those services dies that party is discharged from performance

Question 95

Excuses for Nonperformence: Frustration of Purpose (Common Law)

Answer 95

i. occurs when an unforeseen event that undermines a party’s principal purpose for entering into a contract.

EX: Susie contracts with a swim coach to help with Olymics. After executing the contract but before coaching begins, Susie gets into a car accident and is left paralyzed. The swim coach is ready to coach her but Susie’s purpose to enter the contract has been frustrated. Purpose for entering into contract has been frustrated

iii. Mere increased difficulty or reduced profitability doesn’t count for impossibility or frustration of purpose

Question 96

Excuses for Nonperformence: Commercial Impracticability (UCC)

Answer 96

i. Circumstances greatly increase the difficulty and violate the parties’ reasonable expectations
ii. If goods are reasonably available from another supplier, can’t use this excuse
iii. Lower Standard

Ex: A manufacture can be discharged from an obligation to make goods for a buyer when its major source of raw material that they need has been unexpectly interrupted

Question 97

Breach of Contract

Answer 97

Arises when a party does not accomplish the obligation of contractual performance

Question 98

Remedies

Answer 98

Damages (money) and Equitable Remedies

Question 99

Damages: Compensatory

Answer 99

Damages that aim to put the plaintiff in the same position as if the contract had been performed

Question 100

Damages: Liquidated:

Answer 100

i. When the amount of damages is stipulated in the contract
ii. Ex: If contract is breached you have to pay 5000 in liquidated damages
1. Can’t use liquated damages to serve as a penalty

Question 101

Damages: Consequential

Answer 101

Damages for the downstream impact of the breach (arises from unusual foreseeable losses)
I.E. Lost Sales

Question 102

Compensatory Damages

Answer 102

a. Buyer Breaches
i. Lost Profits: If buyers fail to pay but seller make a replacement sale for a lower price
1. Agree to sell 10 textbooks for 100 but buyers doesn’t pay but makes a sale to another for 70 then can sue for difference
ii. Contract Price: If buyer fails to pay for goods/services and seller can’t resale
b. Seller Breaches
i. Difference between the market price versus the contract price
1. Occurs when the seller fails to deliver goods or services and it is procured at a higher price

Question 103

Duty to Mitigate

Answer 103

a. Victim of a breach of contract must take reasonable steps to mitigate damages
i. If a tenant moves out early breaking his lease, the landlord must try to find someone else

Question 104

Mitigation

Answer 104

reducing or minimizing the damage

Question 105

Equitable Remedies

Answer 105

– if money damages are not adequate

a. Specific Performance
i. requires the defendant to do what he/she is contractually obligated to do
ii. Used for unique subject matter
b. Injunction
i. a court order directing a party to do or to refrain from doing something
c. Rescission
i. the court cancels the agreement and returns the consideration exchanged to each respective party

Question 106

Third Party Rights: Beneficiaries

Answer 106

i. General rule: Third parties cannot enforce a contract
ii. Exception to the general rule if the parties to the contract intended to benefit the third party

Question 107

EX of Beneficiaries

Answer 107

a. Creditor Beneficiaries
i. Creditor Beneficiary can enforce the contract against Promisor OR Promisee
b. Donee Beneficiaries
i. Donee Beneficiary CAN enforce the contract against Promisor
ii. Donee Beneficiary CAN’T sue the Promisee

Question 108

Incidental Beneficiary

Answer 108

a 3rd party who unintentionally benefits from a contract

Question 109

Assignment

Answer 109

Transfer of contractual rights

Question 110

Delegation

Answer 110

Transfer of contractual duties

Question 111

Novation

Answer 111

i. A novation is a 3 (or more) party contract?
ii. The original contracting parties agree to relieve the obligor from liability by substituting another in the place of this party

Question 112

Tort

Answer 112

a. A civil wrong that gives rise to an injury or harm (other than a breach of contract)
b. Tort law limits how people act and use their resources

Question 113

Types of Torts

Answer 113

a. Intentional
b. Negligence
c. Strict Liability

Question 114

Intentional Torts

Answer 114

a. Deliberate actions that cause injury or harm

• The plaintiff has to prove that the defendant intended to perform the act that caused the harm
  ii. Note: The plaintiff does not have to prove that the defendant intended to cause the exact harm suffered but only that the defendant intended the ACT that was substantially to result in harm.

Question 115

Intent

Answer 115

the desire to being about certain results
*The plaintiff has to prove that the defendant intended to perform the act that caused the harm

Question 116

Intentional Tort: Assault

Answer 116

Placing another in immediate apprehension for his/her physical safety

Question 117

Intentional Tort: Battery

Answer 117

Touching of another without consent

Additional Battery Elements: Did defendant touch plaintiff? Was it intended? Was it done in a manner that was harmful or offensive?

Question 118

Intentional Tort: Infliction of Emotional Distress

Answer 118

1. Outrageous, intentional conduct that carries a strong probability of causing mental distress to the person at whom it is directed
2. Infliction of emotional distress requires the plaintiff to prove not only mental distress, but also physical symptoms

Ex: Employee who have been discriminated against or fired, efforts of creditors to get payment, parent seeing their child ran over by a truck

Question 119

Intentional Tort: Invasion of Privacy

Answer 119

1. Using a person’s name or likeness for personal gain/use.
   EX: need permission to use someone’s name or picture
2. Intrusion upon a person’s solitude
   EX: conducted illegal search, illegally searching your home
3. Public disclose of highly objectionable private information
   EX: Broadcasting to the world if I haven’t paid my bills

Question 120

Intentional Tort: False Imprisonment

Answer 120

Intentional unjustified confinement of a nonconsenting person

EX: Manager blocked room with chair with employee in it, Towing company towed a car with person in car

Question 121

Intentional Tort: Malicious Prosecution (False Arrest)

Answer 121

Causing someone to be arrested criminally without proper grounds

Ex: false arrest

Question 122

Intentional Torts: Trespass to Chattell

Answer 122

AKA Trespass to personal property

When someone uses personal property without permission or otherwise interferse with the owner’s possession of personal property
- Can recover the value of the lost use of the item and recover the item itself

Question 123

Defamation

Answer 123

Publication of untrue statements about another that hold up that individual’s characters or reputation to ridicule

Question 124

Slander

Answer 124

Oral Defamation

Question 125

Libel

Answer 125

Written Defamation

Question 126

What are the defenses to Defamation?

Answer 126

Truth and Priviledge Communicaton

Question 127

Is the News Media held to the same standard?

Answer 127

No, because of the 1st amendment when it comes to public officials unless if they publish with no regard for the truth

Question 128

Intentional Torts: Fraud

Answer 128

Intentional misrepresentation of a material fact that is relied upon by someone to his or her injury

2. Failure to disclose can also constitute fraud
   a. There must be a legal duty to disclose a fact
3. Intentional concealment of an important fact that induced reliance can be fraud
4. Business frauds often involve the intentional misrepresentation of property or financial status

Fraud is both a tort and a crime!

Question 129

Intentional Tort: Injurious Falsehood

Answer 129

1. Publication of untrue statements that disparage the business owner’s product or its quality
2. Similar to defamation BUT usually applies to a product rather than character or reputation
3. Plaintiff must:
   a. Establish the falsity of the Defendant’s claims
   b. Show actual damage arising from the untrue statements

Question 130

Intentional Tort: Tortious Interference

Answer 130

1. Wrongful interference with contractual or business relationships

Ex: One company going after another company’s employees while that employee is under contract.
a.In this case, you are not allowed to induce the employee to break their contract

Question 131

What is Negligence?

Answer 131

Definition: Unreasonable behavior that causes injury
ii. Considered an unintentional tort
iii. Number 1 cause of action for lawsuits in the US

Question 132

Elements of Negligence

Answer 132

i. Duty of Care
ii. Breach of Duty
iii. Causation in Fact
iv. Proximate Causation
v. Actual Injury

Question 133

Element of Negligence: Duty of Care

Answer 133

Definition: A responsibility to another person to exercise reasonable care and skill to avoid causing injury or harm

ii. Without a duty to another person, one does not owe that person reasonable care
iii. Usually stems from a person’s conduct or activity
b. Standard of Care:
i. Ask yourself: What would a reasonable person do under the same or similar circumstances?
ii. Example: Driving a car  Not texting and driving, No drinking and driving
c. Is there a Duty owed for non-conduct?
i. Answer: There’s no duty owed to somone through non-conduct
ii. Example: No duty to worn others of danger
iii. Exceptions: Moral responability vs legal duty, feel a moral obligation but don’t have to
1. Special Relationships:
a. Creates a Duty to take action and makes someone liable for their unreasonable non-conduct
b. Examples:
iv. Other Examples: Parent/Child, Business/Customers
1. Businesses being sued for non conduct/ not protecting customers from crimes has increased.
a. Examples:
i. Gabby Petito: Couple Road trup, people see them fighting and call it in, police don’t arrest them and Gabby ends up dead, if he had arrested, she might be alibe
ii. Iannelli v. Burger King Corp takeaway: Teenager made a fuss in BK Infront of father with his kids, teens beat father up. Normally, business don’t have to protect customers but in that case there were warning signs so BK did have a duty to protect
KEY QUESTION: Were the restaurant employees aware of the danger? If yes, they have a duty to protect injury
d. Is the Standard of Reasonableness the Same for Everyone?
i. In most negligence cases the standard of reasonableness is that of a reasonable person
ii. What is the Standard of Reasonableness for Professionals:
1. The standard is that of a reasonable professional
2. Negligence of a professional is called Malpractice

Question 134

Mailbox Rule

Answer 134

Acceptance becomes legally binding when the offeree dispatches it

Question 135

What about an Offeror’s Revocation?

Answer 135

a. If an offer is in the mail and you put revocations in the mail, it can’t be revoked since the offer is already accepted

b. The offer is accepted as soon as it goes in the mail

Question 136

Consideration

Answer 136

1. Bargain for Exchange: An agreement where each party gives something to the other
2. Exchange of Value: Any value exchanged between parties is legally adequate, even if it doesn’t match fair market value.
3. Benefit and Detriment: One party benefits while the other incurs a detriment through the exchange.
4. Examples of Consideration:
   - Promise to pay: An agreement to pay money.
   - Promise to deliver goods or services.
   - Agreement not to sue: Accepting payment in exchange for not pursuing legal action.
   - Promise to keep an offer open (option contract): A binding promise to hold an offer open for a period, supported by the offeree’s consideration (often seen in real estate).
   - Promise to do something optional: A commitment to perform an act that isn’t required.
   - Promise to refrain from legal rights: Example, paying someone to stop a disruptive action.
   - Unilateral contracts: A performance in exchange for an offer where the other party has no obligation to act.

Question 137

What Doesn’t Suffice as Consideration?

Answer 137

Pre-existing Consideration, Past Consideration, Promise to make a gift

Question 138

Exception to the Consideration Requirement

Answer 138

Promissory Estoppel is a legal principle allowing enforcement of a promise even without consideration if certain conditions are met:

1. Reasonable Reliance: A party who reasonably relies on a gratuitous promise can seek compensation for that reliance.
2. Economic Detriment: It applies when a party justifiably relies on a promise to their economic detriment, even if there is no formal contract.
3. Contract Validity: Promissory estoppel can make a contract enforceable despite the lack of consideration.
4. Key Elements:
   -The promisor made a promise substantial enough to cause action.
   - The promisee relied on the promise.
   - The promisee suffered a significant detriment as a result.
   - Relief comes by enforcing the promisor to fulfill the promise.

Question 139

Capacity of Parties to Contract

Answer 139

Capacity of Parties to Contract refers to a person’s legal ability to be bound by a contract. Key points include:

1. Minors: Contracts with minors are voidable at the minor’s option, meaning they can choose to enforce or cancel the contract.
   Exception: Contracts for necessaries like food, clothing, shelter, and medical care are enforceable.
   A minor’s ability to void a contract generally ends at age 18.
2. Intoxicated or Mentally Impaired Persons: These individuals cannot be bound by contracts, and any contracts they enter are voidable at their option.
3. Court’s Competence Test: Courts determine if an adult was capable of understanding the nature and purpose of the contract at the time of agreement.