Study Guide for Second Test
Study Guide for Second Test Mgmt 246
Cal State Fullerton
Popular in Business Law/Legal Environment
Popular in Business, management
This 8 page Study Guide was uploaded by Sara Hashemzadeh on Monday October 19, 2015. The Study Guide belongs to Mgmt 246 at California State University - Fullerton taught by Charles Smith in Fall 2015. Since its upload, it has received 779 views. For similar materials see Business Law/Legal Environment in Business, management at California State University - Fullerton.
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I had to miss class because of a doctors appointment and these notes were a LIFESAVER
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Date Created: 10/19/15
Study Guide for MGMT 246 with Charles Smith Second test Types of Contracts Unilateral Contract Is a contract that has been created by someone giving an offer by making a promise and is completed once the performance that is written on the contract is completed EX You found a cat that was lost and brought it back to its owner however you do not get the reward because you did not know about the reward or about the sign before you gave the cat back You need to know what needs to be done before the action is done in order to get the money or reward Bilateral contract An exchange of a favors between two parties both parties need to do the act that is stated in the contract in order to have the contract fulfilled EX You and your neighbor want to trade cars and write a bilateral contract in order to avoid something bad Both cars must be in the other party s property in order for the contract to be fulfilled Express contract A mutual contract where both parties agree to it by writing the contract or talking about it or both Must be communicated between parties to avoid something bad Implied Contract This contract is made by an action made by both parties however it is never written or spoken about by both the parties Ex Someone giving you a scantron without paying Valid Contract A contract that is enforceable in court Voidable contract At most one party is bound to the contract and the other is not yet EX The other does not have to sign the contract because of their disability drunk or don t remember anything Void Contract unenforceable in court due to illegal purpose EX suing someone for forgetting to bring cocaine to you Lawyer is going to dismiss you Executory contract A contract that has been made and has been done but not fully completed yet usually taking a few years Ex A 3 year construction contract without doing all of the work yet Have done 2 years of work but has to still finish the other year of the contract Executed Contract A contract that has been fully completed Written contract A contract that has been written out usually recommended Oral contract A contract that has not been written down but instead orally communicated only Not recommended usually causes trouble Electronic Contract A contract made electronically Ex Paying rent online Offerorpromisor Party who makes the offer Ex person who offers item on amazon Offeree promise party who is the recipient of the offer Ex The audience Person who buys the item from amazon An offer has 3 main parts that it needs in order for it to be a contract 0 An offer the terms being said 0 An Acceptance agreeing to terms 0 A Consideration a paymentrewardO Reasonable expectations are made by the parties involved with the contract while the Reasonable person is someone who is a valid J udgeattorney Offer is a proposal Must be able to communicate your proposal to the other party and put in mind what the reasonable person might think about the offer and if its ligament With a reasonable reward Ex Being invited to a fancy event you earned your way to the event Termination of an Offer After offer has been made it can be terminated if it is 0 Rejected by the person who is accepting the offer 0 If the person putting up the offer revokes it o The offer only lasts some amount of time so if the time expires o If it is counteroffered by the person who should be accepting the offer Acceptance 0 Means Mutual agreement on both parties 0 Many counteroffers can happen before an acceptance is reached 0 Acceptance is always communicated either electronically orally or written OFFER ACCEPTANCE MUTUAL ASSENT Both parties came to an agreement otherwise known as a mutual assent Mutual Accent can be terminated by 0 Fraud 0 Duress o Undue in uence EX Professor offers you to invest in a company with him and if you don t invest you are guaranteed not to pass the class But you invest because you have to get an A Consideration Each party must give up something of legal value Ex when you buy a house you must putt 1000 5000 in consideration so that the seller knows that you are not going to bail out because if they due then the seller gets to hold on to that 1000 5000 dollars of money Breach of Contract Certain things are needed in order for a breach of contract to occur 0 Valid contract usually written contract between two parties plaintiff and defendant 0 Proof that the defendant has actual not performed what was to be performed in the contract the reward was not given and proof that it was not given 0 If the defendant did not give the reward yet has it troubled the plaintiff financially or an injury that they must cover 0 The plaintiffs excuse for not performing his part of the contact if he did not What can you win in court At Law Damages in terms of money typically Equitable What is fair and right to get Election of remedies the rule typically only one available Damages Plain and simple the plaintiff wants money for damages that the defendant caused Different types of damages Compensatory Money awarded to a plaintiff to compensate for damages injury or another loss Consequential damages you can prove occurred because of the failure of one party to meet the contracts demands EX You couldn t get the job not because you were late to the interview but because of other reasons as well Liquidated damages with a certain amount the parties had put down in the contract during the formation of a contract for the injured party to collect as compensation upon a specific breach EX pays an inspection to check any damages Contract said no dames so when you move in and the house is damaged and the contract says that there is 350 dollars to fix the wall any damages that have occurred The amount is in the contract Equitable remedies Specific performance an order of a court which requires a party to perform a specific act usually what is stated in a contract Reformation plaintiff seeks judgment changing written contract to correct mistake Rescission and restitution Plaintiff requests judgment which requires both parties return any benefit they may have received Defenses to Break Case First line of defense one or more elements missing Capacity As a legal matter basically they are presumed not to know what they39re doing These people legal minors and the mentally ill for example are placed into a special category Legality contract must have a legal purpose that is voidable Assignmentdelegation transfer of contract rights duties to the 3rd party Mitigation of damages Plaintiff make a steps to reduce the damages that can be made deduct from total damages EX The landlord may be able to sue the tenant for breach of contract however the landlord must mitigate damages by making a reasonable attempt to find a replacement tenant for the remainder of the year NonCompete Clause in employment contract illegal in California Statute of Frauds and Parol evidence rule Statue of Frauds requires certain contract to be in writing Parol evidence rules says written contract cannot be contradicted by contemporaneous oral agreement validity of contract in dispute Discharge of a contract Discharge no further perfume to the contract Ways you can discharge a contract 0 By full or substantial performance most common 0 By subsequent agreement accord and satisfaction so same contract but new party 0 By operation of law statute of limitations expires defendant files for bankruptcy Damages financial loss are required for any tort If something of the plaintiff has been injured destroyed or lost by another party then the plaintiff will go to court With the defendant in order to get compensated for What has been lost If no Damages then no compensation and the defendant Will Win the case Intentional Torts Intentional in iction of emotional distress Defendant must commit and outrageous conduct Which is something that has exceeded the boundaries of things accepted by society 5 standards 0 Fraud 0 Invasion of Privacy EX putting a camera in a restroom or looking at a medical record of a stranger Negligence what must the plaintiff prove Plaintiff must prove these 0 Duty of care defendant owes a duty of a care to plaintiff o Breach the defendant must have broken a contract or the duty of care owed to plaintiff 0 Causation and damages the breach and the damages that have been caused because of the breach damages to the plaintiff that the defended has clearly caused IF PLAINTIFF PROVES ALL THE ABOVE THE DEFENDANT CAN STILL WIN Negligence Defenses o Assumption of the risk Plaintiff cannot Win the negligence because they are injured or in a dangerous situation o plaintiff s fault recognizes that plaintiff may contribute to the accident but should still be entitled to some money Ex Wood shop class and a student cut off fingers when a teacher is not in the room during class period time 3rd party s fault Liability on the 3rd party 0 Supersedingintervening cause confusion of What happened Ex Figuring out when the student got hurt form the accident A person crashed into another person While diving and that person has a bad medical record the person Who hit should only pay What they caused and the doctor should pay the rest Strict Liability Liability Without fault as a matter of public policy based on considerations Product liability is part of strict liability Product liability cause of action recognizes that there Will be defects in mass produced products even if used as intended Three types of product liability 0 Manufacturing defect 0 Design defect 0 Warning defect Ex McDonald s coffee case aerosol spray case Judgment in Tort Cases Compensation for plaintiff 5 nancial loss in order for plaintiff to be made Whole 0 Special Damages tangible damages EX Medical bill have a document a piece of paper 0 General Damages Emotional distress get money for your feelings something that is abstractnot tangible Ex emotional distress or pain and suffering not avoidable for breach of contract but could be available for fraud Ex Your spouse verbally abused you and abused you in a sense that emotionally hurt you Punitive Damages punishment Ex Rather than being compensated for the plaintiff these are additional punishments that are made on the defendant There is a limit on the amount of punitive damages that can be given Ratio to special damages general damages should be 12 Disclosure This Study Guide is composed of my own notes Charles Smith s notes and some Law definitions obtained from google
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