Weeks 1-6 Flashcards
What was the issue in Lucy v. Zehmer?
Was there mutual assent between the parties where Zehmer claims he was joking during the contract creation?
The court looks to outward expressions rather than claims of intention.
What rule did the court apply in Lucy v. Zehmer?
The outward manifestation/expression of the parties is the rule applied.
The court focuses on words and deeds instead of subjective intentions.
What was the outcome of Zehmer’s claim in Lucy v. Zehmer?
Zehmer’s outward expression was sufficient to be classified as a contract.
They negotiated a price and wrote it down without expressing it was a joke.
In Harvey v. Facey, what did H request from F?
H requested the lowest price F would accept for the sale of his farm.
F replied with £900.
What was the court’s ruling regarding the communication in Harvey v. Facey?
The response of £900 did not constitute a valid offer for acceptance.
It suggested a price rather than being a definite promise to be bound.
What is required for a contract according to the court in Harvey v. Facey?
A contract requires an offer that is a definite promise and acceptance that is an unequivocal agreement to the terms.
What was the subject of the preliminary offer letter in the context provided?
The letter detailed values for inventory, fixed assets, and furniture for purchase.
It was addressed to Nicholson on August 24, 2001.
What elements were listed as needing further discussion in the preliminary offer?
Goodwill, consulting, and noncompete payments.
These were not included in the entire offer.
In the context of Kuzmeskus v. Pickup Motor Co., what was the court’s focus?
The court’s focus was on the tone used in the case.
Tone can help predict the outcome of a case.
What was the relationship between Caro Davis and the Whiteheads?
Caro Davis was the niece of Blanche Whitehead, and they had a close, loving relationship.
What significant event occurred on April 22, 1931, in Davis v. Jacoby?
Mr. Whitehead committed suicide.
This event influenced the subsequent legal proceedings.
What was the claim made by the plaintiffs in Davis v. Jacoby?
The plaintiffs claimed that Rupert Whitehead assumed a contractual obligation to make a will benefiting Caro Davis.
What did the trial court find regarding the plaintiffs’ performance in Davis v. Jacoby?
The court found that the plaintiffs fully performed their part of the agreement.
What was the trial court’s theory regarding the letter of April 12 in Davis v. Jacoby?
The theory was that the letter constituted an offer to contract that could only be accepted by performance.
What was the loss Mr. Davis claimed to have incurred?
Over $8,000 in renewal commissions earned on past business.
What was the theory of the trial court regarding the offer made on April 12?
It was an offer to contract that could only be accepted by performance, not by a promise to perform.
Define a unilateral contract.
A contract in which no promisor receives a promise as consideration for his promise.
Define a bilateral contract.
A contract in which there are mutual promises between two parties, each being both a promisor and a promisee.
What is the legal requirement for acceptance in unilateral contracts?
No notice of acceptance by performance is required.
What presumption exists regarding offers in contract law?
There is a presumption that an offer invites the formation of a bilateral contract.
What does Section 31 of the Restatement of Contracts state?
In case of doubt, it is presumed that an offer invites the formation of a bilateral contract.
What was Mr. Whitehead’s intent regarding the nature of the acceptance?
He indicated a desire for a promise of assistance from Mr. and Mrs. Davis.
What did Mr. Whitehead specifically request in his offer?
An immediate reply indicating the appellants’ promise to perform.
What is the significance of an offer indicating the mode of acceptance?
An acceptance in accordance with that mode is binding on the offeror.
What factors indicate that Whitehead intended a bilateral contract?
The requirement for services to be performed until the death of both Mr. and Mrs. Whitehead.
What is the conclusion regarding the offer of April 12?
It was an offer to enter into a bilateral contract accepted by the letter of April 14.
What happens when consideration has been fully rendered?
Specific performance will be granted.
What did the uncle promise his nephew?
To pay him a sum of $5,000 if he refrained from certain activities until he turned 21.
What argument did the defendant make regarding the contract’s validity?
The contract was without consideration to support it.
What constitutes valuable consideration in contract law?
Some right, interest, profit, or benefit accruing to one party or forbearance, detriment, loss, or responsibility undertaken by the other.
What is the definition of consideration in contract law?
Something promised, done, forborne, or suffered as an inducement for a promise.
What is the issue of adequacy of consideration?
Whether the consideration provided is sufficient to support the contract.
What does Lucht’s Concrete Pumping seek to enforce?
A noncompetition agreement signed by respondent Tracy Horner.
What does Lucht’s argue constitutes adequate consideration?
Its forbearance from terminating Horner.
Why does continued employment not constitute adequate consideration?
The employee is in the same position as before signing the agreement.
What is the ruling regarding forbearance from terminating an at-will employee?
It constitutes adequate consideration for a noncompetition agreement.
What must support a covenant not to compete?
Consideration.
What is nominal consideration?
Consideration that is viewed as giving up nothing, often allowed in option contracts.
What are compensatory damages designed to achieve?
To put the injured party in as good a position as if performance had been rendered as promised.
According to Hadley v. Baxendale, what is a defendant not chargeable for?
Loss that he did not have reason to foresee as a probable result of the breach.
