Exam 2 Business Law
Exam 2 Business Law BLAW 3080
Popular in Legal Environment of Business
Popular in Business Law
This 4 page Study Guide was uploaded by Madison Morman on Wednesday March 9, 2016. The Study Guide belongs to BLAW 3080 at University of Cincinnati taught by Peter Burrell in Summer 2015. Since its upload, it has received 232 views. For similar materials see Legal Environment of Business in Business Law at University of Cincinnati.
Reviews for Exam 2 Business Law
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 03/09/16
TEST 2 STUDY GUIDE Bilateral : Two promises—promise is exchanged for a promise. Here, a contract is formed as soon as promises are exchanged. Unilateral: One promise, given exchange for act/performance (flagpole) Void: Person is mentally incompetent by a court of law and a guardian has been appointed Voidable: Person doesn’t know they are entering contract/lacks mental capacity to comprehend its nature, purpose, and consequences (minor underage) Valid: Person is able to understand nature and effect of contract but may lack capacity to engage in other activities (supported by consideration) Executory: If duties remain to be performed under contract. A contract may be wholly executory (neither party has performed) or partially executory (one party has not performed). Executed: If all of the duties under the contract have been performed 1. Jimmy’s Marketing Company and Tunes, Inc., sign a document where Jimmy’s agrees to create a marketing campaign for Tunes and Tunes agrees to pay Jimmy’s for the service. Jimmy’s and Tunes have a. an executed, voidable contract. b. an express, executory, bilateral contract. c. an implied, executory, unilateral contract. d. no contract. Common Law offer Requirements: Statement by an offeror that allows OE to accept. 1. Intent to contract 2. Defintieness and certainty: Identify subject matter, quantity, price, payment, delivery 3. Has to be communicated: No question ofer was communicated Inquiry- Would you take x amount of money (not an offer) Advertisement- invitation to offer (not an offer) Intent – objective theory: Offeror must intend to make offer; no subjective intent o Objective Theory: Dictates one should look for objective signs of intent to make an offer rather than scrutinize the fairness of the transaction. General rule regarding offer – Offer can be revoked anytime before acceptance by offeree making the offer irrevocable THREE EXCEPTIONS 1. Option contract-‐ paid offeror in order to buy time to keep offer open 2. Calls for a performance 3. Merchants firm offer-‐ have merchant who makes offer in writing and signs that they will keep the offer open Irrevocable offers – under common law and UCC Offer made by merchant in a signed writing is irrevocable for reasonable period of time. No consideration necessary. -‐Offer must be in writing and signed by the OR -‐When accepted, non-‐revokable Rejections/counteroffers – effect in negotiations OE rejects expressly; counteroffer is both a rejection AND new offer Acceptance – mirror image – mailbox rule o Must be unequivocal/Mirror Image: Common law contracts follow Mirror Image Rule-‐ attempted acceptance that changes terms or adds new terms is not valid -‐ is a counteroffer o Mailbox Rule: Acceptances are effective when they are mailed o Exception: When OR has to receive physical acceptance to b e accepted Consideration: A legal detrimant that must be bargained for Rules of the consideration • Doesn’t need to have monetary value • Courts don’t inquire into adequacy of consideration (enforce contracts) • Preexisting duty NOT sufficient consideration (non-‐compete/delivery person) Legal Detriment • Act • Forbearance • Promise to Act • Promise to Forebear Defenses to contract – fraud, duress, undue influence Fraud-‐ In most fraud cases, party is aware they are making a contract but terms are misrepresented o Misrepresentation of Fact o Intent to Deceive o Actual and justifiable reliance by victim o Damages Duress-‐ Forcing a party to enter into a contract under fear or threat makes the contract voidable; threatened act must be wrongful/illegal and render a person incapable of exercising free will. (civil suit threat is not duress) Undue influence-‐ Contract lacks voluntary consent and is voidable; o Confidentiality, fiduciary, or relationship of dependence o Persuasion is presumed if a weaker party talked into doing something not beneficial to him/herself. Illegality – contracts that violate statute -‐-‐ or public policy -‐Contracts that violate statutes/laws/public policy are void -‐EXCEPTION: Non-‐compete with sale of business AND covenant not to compete in employement Statute of Frauds Common Law Certain types of contracts that must be in writing Under the Statute of Frauds, real estate sales contracts must be in writing to be enforceable. a. True b. False Statute of Frauds UCC Sales article – Exceptions? Agreement for $5 or more has to be in writing Merchant’s confirmation of verbal contract : Damages Compensatory Damages: Damages that compensate the non-‐breaching party for the loss of the bargain. These compensate the injured party only for damages sustained and proved to have arisen from the loss of the bargain from breach of contract. They replace what was lost. Punitive Damages: Available for fraud (misrepresented fact), buy into insurance policy Consequential Damages: Foreseable damages that result from a party’s breach of contract (special damages). Liquidated Damages-‐ Specifies a certain dollar amount in the event that the contract is breached. Equitable Remedies Injuction: Remedy where court orders breaching party to do something Specific Performance: Used with land/unique personal property Rescission: Puts parties back in same position as they were before the contract General rule of damages in contracts: Tries to put people in original state they were in before the contract 2. A contract in a writing signed by both parties to buy product X from a business, for $4,500, but business fails to deliver. Buyer buys the product elsewhere for $5,500. The measure of damages is a. $1,000. b. $1,000 plus attorney fees. c. incidental and punitive damages only. d. $0. -‐Don’t get attorney fees unless specifically say in contract Duty to mitigate: Has to try and find another buyer or seller
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'