Part 3 Study Guide
Part 3 Study Guide
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This 9 page Study Guide was uploaded by Zohar Peleg on Monday February 9, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 30 views.
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Date Created: 02/09/15
02052015 BSL485 Quiz 3 Study Guide Legalcapac y Consists of o Incapacity due to legal impairment 0 Minors Incapacity due to legal impairment 0 Self impairment isn t an excuse 2 exceptions o enforcing K party caused the impairment Borga ring 0 obvious impairment being drunk minors has right to cancel K up to age 18 plus a reasonable time after minor s duty return what was received in its existing condition adult s duty pay back full restitution 2 exceptions 0 age misrepresentation o necessity vs luxury Florida is a majority rule Acceptance Acceptance effective when sent IF satis ed the reasonable medium rule 0 Ex quotacceptance is effective when receivedquot Regulatory laws 0 Laws that regulate profession Violation of this means that K s related to this profession are void illegal and unenforceable Lending laws Violation of this means punitive damages Usurious loans Usudousloan Exceeding the loan rate dictated by state Florida s law 0 Loans up to 500000 max interest rate is 18 per yr 0 More than 500000 lender can charge 25 interest per year 0 Penalty lender gives up interest but can collect principal Texas law Penalty lender collects both interests amp principal Offshore gaming sites 0 Are illegal K s Strategy pull out wins as they occur regularly amp never let big balances accumulate Releases of liability Are valid amp enforceable EXCEPT in case of negligence Noncompete agreement Comprise of 0 Employment non competes 0 Purchase of a business non compete Employment non compete agreement Reasonable as long as they appropriately apply to 3 areas 0 Time should not exceed time of hire 0 Area prohibited area should be reasonably limited 0 Scope must be speci c Purchase of a business non compete agreement 0 Must guarantee enough time to not compete with the other business to gain enough customers 0 Must apple to 3 areas 0 Time 0 Area 0 Scope Economic duress Occurs when strong party views an opportunity to exploit the weak pa y Weak party is stuck with making a bad nancial deal bc it has no reasonable alternative 0 Ex contractor doesn t get check back from his K with FPL He won bc he was under economic duress Hard bargaining is NOT economic duress Improper persuasion Occurs when there s a duciary relationship 0 Ex Ms Lee is an old lady She has a d relationship with her lawyer After she dies she leaves her inheritance to her lawyer Fiduciary relationship 0 Exists when 0 There s a special relationship 0 Transfer of assets to the duciary person Mistake 0 Can be 0 Mutualbilateral o Unilateral Mutualbilateral mistake Occurs when both parties make a mistake Either party can cancel K 0 Ex precious stone case Unilateral mistake Occurs one party makes a mistake Can t cancel K Remedy recision Fraud 0 Can be 0 Fraud in the execution 0 Fraud in the inducement Fraud in the execution Occurs when one person signs a doc intending it to be something and it turns out to be something else 0 Ex Brad Pitt case Fraud in the inducement Consists of 4 elements 0 Misrepresentation of a material fact 0 Intent to deceive o Reliance on misrepresentation on P s part 0 Monetary damage on P s part Exceptions to fraud so theyre NOT fraud 0 Opinions unless stated by experts Future predictions Silence unless you have a duty to speak Cases Hedgepeth v Home Savings amp Loan Association 0 O 0 Lady signs a K for her son to take out a mortgage loan for her Lady is adjudicated incompetent She was not impaired when she signed her K Lucid interval test Impairment o Sinai Bank v Hyland O 0 Dad borrowed from bank over 15 years Signed and paid back promissory note Never indicated that he was impaired Son borrowed but didn t pay back Dad co signs then states that he s a habitual alcoholic So when he co signed he was not legally capable of understanding K Win Bank bc it does not pass the test of impairment Dodson v Shrader O O O O 16 year old buys a truck Wants to have it repaired then it blows up Made K with car dealer when he was 16 and for luxury TN court decides for minority rule and allow the adult seller to deduct from what is to be paid the reasonable cost of repair Since car is totaled seller does not have to pay back anything 0 The Score Board Kobe Bryant 0 O O O BBall case marketing K for 10000 Marketing company goes into bankruptcy so puts K in auction Koby turns 18 and accepts 10000 He doesn t cancel this K until he s 195 Win against Koby because he rati ed the K Hydrotech Systems v Oasis Waterpark 0 Contract to build sur ng pool in California 0 contractor was not licensed in Cali which violated a regulatory law 0 win hydrotech because K was unenforceable due to violation of a regulatory law Dunham v Burns 0 Borrowerlender transaction Loan of 35000 0 Terms loaning of money must pay back within 6 months plus extra 0 Win borrower Borrower didn t have to pay back because interest was usurious Double click 0 Hire is too long o If youre evaluating employment non compete you must be more restrictive in terms of time Paulson 0 Old lady has health problems One of the sons moves in with her and makes her sign over her bank accounts and her house 0 Win the other kids Undue in uence by the son duciary relationship transfer of assets Klaskin v Klepak 0 Old man who owns a condo His lawyer Clipack starts dating him Man makes a life estate deed to hand over his condo to her after he dies His heirs wanted the estate 0 Win heirs Clipack should ve known better to have witnesses there when he signed the deed appearance of impropriety Precious Stone 0 guy nds a precious stone Friend offers to buy stone There s an agreement The stone turns out to be a diamond Guy wants to get back his stone based on MUTUAL MISTAKE upon the identity of the subject matter stone 0 Win guy bc of mutual mistake Brad Pitt 0 Brad Pitt walks in and signs a promissory note by accident 0 Win Pitt bc of fraud in the execution he was just signing autographs and didn t know he was signing a promissory note 0 Reed v King 0 P buys house from D a family got murdered in that house P has no idea about the murders when she buys the house She nds out and sues D for fraud 0 Win P bc of fraud Nyack NY Haunted House 0 P buys house from seller D the house is widely reputed to have ghosts in it P nds out and sues to cancel the transaction 0 Win P
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