Rule statements Flashcards
Contract
A promise for the breach of which the law provides a remedy or recognizes a duty
Offer
A presentation for someone to accept or reject as desired
Acceptance
The offeree’s manifestation of assent to the terms and conditions made by the offeror, the offeree agrees to the terms
Consideration
A bargain for exchange, what is given up
Specific performance
An order by the court to get what was promised initially
Termination
a) Non-occurrence of any condition or acceptance under the terms
b) Revocation by the offeror
c) Lapse of time
d) Death or incapacity
e) Rejection or counteroffer by the offeree, not an inquiry
Quasi-contract
Not an actual contract, legal fiction created to effect equitable results
Promissory estoppel
The doctrine that a party may recover based on a promise made when the party’s reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise
a) A promise on which there is a foreseeable reliance
b) The promisee relies on that promise to their detriment
c) Injustice can be avoided by enforcement of the promise
Damages
Has to be proven with clear and convincing evidence
Expectation damages
Puts a party in the position they would have been in had the contract been fully completed with no breach
Reliance damages
Puts a party in the position they would have been in had the contract never been agreed to
Restitution damages
Awards a party damages based on the value a benefit conferred to the breaching party; courts use a great deal of discretion
Consequential damages
The expenses or other losses that the plaintiff would never have incurred but for the defendant’s breach
Incidental damages
Incurred in ascertaining and trying to prevent breach or avoid damages
Lost profits
An estimate, the standard to uphold awards is to be substantial evidence
Loss of goodwill
The reputation the person/business had built over time is reflected by the return of customers
Equitable remedies
Considers specific performance, injunctions, and declaratory judgment actions
Britton Rule
When a non-breaching party receives value, takes and uses the materials, or has an advantage from the labor, they are still liable to pay the reasonable worth of what was received
Mutual mistake
A contract may be found voidable under these circumstances
a) The mistake concerns a basic assumption on which the contract was made
b) The mistake has a material effect on the agreed exchange of performances
c) The adversely affected party who is seeking avoidance does not bear the risk of a mistake
A party bears the risk of a mistake when
a) The risk is allocated to them by agreement
b) They are aware, at the time the contract was made, that they have only limited knowledge of the facts to which the mistake relates but treat their limited knowledge as sufficient
c) The risk is allocated to them by the court because it is reasonable in the circumstances to do so
Misunderstanding
When both parties’ reasonable faith beliefs are objectively factually correct but different
a) No mutual assent if both parties know they have different meanings or they don’t know
b) If one party knows and the other doesn’t, the meaning will be attributed to the party who didn’t know’s belief
Unilateral mistake
The effect of the mistake would make enforcement of the contract unconscionable, or the other party had reason to know of the mistake or caused the mistake
Misrepresentation
Must prove an assertion not by the facts - fact and not opinion – a belief without certainty as to a fact; or a judgment of quality, value, etc.
Duress
If a party’s assent is induced by an improper threat by the other party or by a third party, leaving them with no reasonable alternative, the contract is voidable unless the other party acted in good faith and had no reason to know of the party was acting under duress
Undue influence
Coercive persuasion overcoming the will without convincing the judgment that is normally found in a confidential relationship or one that is susceptible to influence
a) The party was under the domination of the other party
b) The party exercising the influence must use unfair persuasion
Illegality
Rendering unenforceable all or some part of an agreement on public policy grounds – focuses on the contract’s subject matter rather than the parties’ conduct, the freedom to contract is outweighed by moral values, economic interests, or protecting legislation or government institutions
Incapacity
Contracts with minors or people with a mental infirmity are voidable
Impossibility/impracticability
A contract that is impossible to enforce
