LS 422 Chapter 4 Contracts
LS 422 Chapter 4 Contracts 422
Popular in Commercial Law
Popular in Legal Studies
This 3 page Class Notes was uploaded by Rachel Sutherland on Sunday September 25, 2016. The Class Notes belongs to 422 at Grand Valley State University taught by Joshua Sheffer in Fall 2016. Since its upload, it has received 4 views. For similar materials see Commercial Law in Legal Studies at Grand Valley State University.
Reviews for LS 422 Chapter 4 Contracts
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: 09/25/16
Chapter 4 Contracts 4.1 Introduction to Contracts 1. What is a contract? a. A legally enforceable agreement b. Must involve at least two people (the parties to the contract) 4.2 Contract Law Sources 1. Three main sources of contract law: a. Common law b. UCC (uniform commercial code) i. Not a law for everyone everywhere ii. UCC is not actually a law at all iii. Different states enact portions or all of it or none of it into their own Michigan commercial code iv. Covers the sale of goods and promotes commerce v. A good is anything that can be moved Car can be moved, so it’s a good House is attached to the land, it cannot move, so it’s not a good vi. Can modify general contract law c. Restatement of Contracts i. Used as a reference on contract law ii. Called a restatement because it gives the basic general common law for the whole country iii. Restatement of common law iv. It’s never mandatory that a court follows the restatement, unless there was a higher court above who followed it 4.3 Requirements to Find a Contract 1. Three types: a. Offer b. Acceptance c. Communication 2. What’s an offer? a. General Information: b. A specific and definite proposal by offeror to enter into K (contract) c. Requires: i. Valid offer/serious intent to make an offer ii. Definiteness (Ex: I’ll sell you my car for 5,000$ - price makes it definite) iii. Communicated d. Termination i. Terms of the offer (Ex: Offer is only good through Thursday) ii. Lapse of time iii. Revocation Can do this any time before the offer is accepted There are exceptions: Hold open for reasonable amount of time (no longer than 90 days) Cannot close offer before the expiring date o Not allowed to revoke Firm offer Option K 3. Acceptance (requirements) a. Intent before the acceptance (have to accept on purpose) b. Exactness i. Common law (mirror image rule – has to match the offer exactly) ii. UCC (deals with goods) Additional terms become part of K unless: o Offer is expressly limited o Materially offer alter o Offeror objects c. Communication 4. Consideration a. The something of value that gets exchanged b. Something bargained for in exchange for a promise 5. Bilateral K a. Promise is exchanged for a promise b. Almost all contracts are bilateral c. Ex: I will pay x amount for x 6. Unilateral K a. Promise is exchanged for an act i. How much consideration necessary for K to be valid? Pretty much any amount ii. Promise to perform preexisting contractual duty Duty you had under contract before entering new contract iii. Performance before promise iv. Unliquidated debt v. Promissory estoppel 7. Types of Contracts a. contract i. A K that is enforceable b. Unenforceable i. A K that a court won’t enforce because of a legal rule c. Voidable i. K that cannot be canceled by one or both parties ii. Minor cannot be bound to a K d. Void i. A K that is never valid ii. Court will never ever approve it iii. Ex: contract for selling cocaine e. Express contract i. Created by words ii. In writing or oral f. Implied contract i. Implied in fact ii. K where court infers promise to pay because circumstances show intent g. Implied in law (quasi-K) K like results to prevent unjust enrichment If successful, party conferring benefit receives reasonable value
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'