Module 9 (3&4) Flashcards
What are the types of contracts
Unilateral and Bilateral Contracts, Individualized contracts, and Standard form contracts
What is a unilateral contract?
A type of contract where there is an offer given, but acceptance is only by doing the thing specified
eg. reward posters
What are Bilateral contracts?
A contract where both sides promise to do something, and once both sides make the promise it is binding on both
What are Individualized contracts?
Where both sides negotiate the details of the contract
What are Standard Form Contracts?
Where one side drafted the agreement, and the other simply signs it and doesnt have much opportunity to negotiate
What is E-commerce
an area of the law that tries to figure out how consumers are able to understand what their obligations are (sometimes terms and conditions on a website are hidden)
What is a big example of a standard form contract type
Online purchases, you either accept the agreement or reject it (no negotiation)
also called “clickwrap, shrimkwrap, or browser wrap”
What are the two types of “terms” in a contract?
Warranties
Exclusion clauses
What is a Warranty?
A promise by the seller that it will fix the item if something is wrong with it
In an event that a seller doesnt honor their contract warranty, what can the the buyer do?
sue the seller to enforce the warrenty
What are exclusion clauses
The seller will not be reliable for any injury in case of an accident
What is a “Breach” of a contract, and what can happen as a result
If one side does not perform what it promosed, its known as a breach of contract. The other side will then have the right to take the person to court and ask for legal remedies / damages
What is Mitigation?
The idea that you cant claim remedies from something without at least trying to minimize the damages.
You must “mitigate” damages before claiming
Explain the case of Birch v GWR Resources Inc.
An investor, Birch, was investing in a company. The company said “find us some money and we will look after you.” (like a finders fee), this is a unilateral contract
Birch found the money but the company refused to pay, as the contract was ambiguous, what amount of money did he need to find? what exactly was the reward?
What happened to Birch in the Birch v GWR Resources Inc. Case?
The court made sure that Birch was paid under fairness principles of contract law (Quantum meruit)
