LGS200 Exam 3 – Contracts / Study Guide – Spring- 2018
4 essential elements of a valid contract
Agreement, consideration, contractual capacity & legal object
Contracts under the U.C.C. (Uniform Commercial Code)
Contracts for the sale of goods
Types of contracts: bilateral vs. unilateral
B=”promise is a promise” U= Promise for an act. “accepting by performing” Valid offers / elements
3:Serious intent, definiteness, communicated
Termination of an offer
Lapse of time, revoked by offeror, rejected by offeree or counter offer Acceptance of a contract
When mailed or communicated
Favors acceptance ONLY. Formed immediately when mailed
Acceptance by fax machine
Accepted only when read/acknowledged. NOT when sent like the mailbox rule Counteroffers
Terminates the original offer (since it is not the same)
Offeree to offeror
Offeror can take it back
Offers of a reward
Can collect if you acted because of the reward, can’t collect if you heard about the reward AFTER completing the act.
Unilateral offers We also discuss several other topics like What are the benefits of sampling distribution?
Promise for a SPECIFIC act
Objective theory / test
Serious intent. Judge if you are actually serious about it
Lucy v. Zehmer
Z said he was merely joking and was not serious about it, even said he was drunk. But further looking into it he was serious.
Contracts implied in law Don't forget about the age old question of What are the key differences between the stance of erasmus and ramus?
To avoid unjust enrichment
Contracts implied in fact
Actions speak louder than words. Eating something before you pay for it implies you’ll pay for it.
Consideration / bargained for exchange
Legal value, exchange that parties engage in that leads to an enforceable contract Peppercorn rule
Every detail counts and can be valid
3: minors, intoxication & court adjusted insane. Minors can disaffirm any contract Emancipation
No longer with their parents, they are officially on their own. Must pay for themselves Illegal contracts
Courts leave parties as they are, they don’t go messing around to fix things Court’s position / illegality
Unconscionable contracts / elements
Unequal bargaining power. One is stronger and uses against the weaker to get a contract done.Don't forget about the age old question of What distinguishes one's social class?
Put in writing before. “if x is done then I will do this”
covenant not to compete (non-compete clause) We also discuss several other topics like What is the structure of fatty acids?
employment contract. Time and geography. If you want to learn more check out What are the features of sarcomere?
The Statute of Frauds / which contracts must comply
Oral & written. MY LEGS. Marriage, Years, Land, Executive Goods over $500 S Types of damages for breach of contract / remedies Don't forget about the age old question of What are the various duties of a judge?
The non-breaching party will receive the money
State upfront what is expected if breached
Must tell in advance what they will pay if not completed
Equitable remedies for breach of contract
Authoritative warning or order
Rare & unique
Mitigation of damages
Innocent must do whatever reasonable to prevent more damages The reality of assent:
Threats, violence, constraints or other actions brought to bear on someone to do something against their will
Conscious decision to induce another
When someone takes advantage of mental, emotional, or physical weakness. Unduly persuades into a contract
Mistake: unilateral or bilateral
U=only one is at mistake. B=both parties are at fault
Mistakes of value
Value was not considered
Misrepresentation of material fact, intent to receive, reliance of misrepresentation, injury to innocent party
Rescission of contract / mutual
Offeror rescinds the contract
When one party is substituted for another party
Told in advance you are unable to complete
Promises that haven’t been completed
hypothetical questions (12) (KNOW)
third party rights
they receive all rights
condition precedent / subsequent
“if x occurs, then you must complete it before everything is done”