Week 5 lgst
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This 3 page Class Notes was uploaded by Sophie Levy on Monday October 3, 2016. The Class Notes belongs to LGST 3010 at Tulane University taught by Sanda Groome in Fall 2016. Since its upload, it has received 4 views. For similar materials see Legal/Ethical/Regul Busn in Business at Tulane University.
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Date Created: 10/03/16
Ch. 6 Thursday, September 29, 2016 9:38 AM Contract: a legally binding agreement - Elements (going to be on the test): 1. A good offer 2. A good acceptance 3. Genuineness of assent 4. Capacity, Consideration, Legality - Formed under state law; every state has its own contract law, BUT –they are basically the same ○ Varying terminology - Common Law Contracts: general; what we will be talking about - Some contracts NEED to be in writing ○ Ex: real estate contracts - Bilateral contract: " promise for a promise" - Unilateral contract: "a promise for an act" - Quasi-‐contract: not a real contract; you can go to court and asked to be treated AS IF you have a contract; will be enforceable when one party suffers losses as a result of the other party's unjust enrichment (when you've benefitted from something and are not willing to pay for it) - Describing contracts ○ Valid: you have all the elements of the contract and it's perfectly good ○ Void: as if the contract never happened; illegal contract ○ Voidable: could be a perfectly good contract, but one of the party's has the right to void it § Ex: contract with a minor ○ Unenforceable: may be a contract that has certain requirements, and because you didn't follow those requirements, it cannot be enforceable § Ex: if a real estate contract is not in writing - Formal vs. Informal Informal: ○ § Ex: mom and son cleaning agreement :) § You won't get sued… not worth it to go to court ○ Formal: § Ex: real estate, mortgage documents, loan documents - Whole vs. Divisible contract § Ex: mom and son cleaning agreement :) § You won't get sued… not worth it to go to court ○ Formal: § Ex: real estate, mortgage documents, loan documents - Whole vs. Divisible contract Whole ○ § Ex: in an insurance contract, it may say "this contract must be read as a whole"–meaning you can't pick a few parts of it to enforce § Or it will say "not divisible" ○ Divisible § In court, a judge may rule that parts of the contract are unfair, ambiguous, etc. Offers - Good offer: ○ Must be communicated ○ Must be definite ○ Person making the offer must have the intent to be bound by it - Good acceptance ○ "Mirror Image Rule": your acceptance must have the same requirements as the offer ○ The person who makes the offer gets to decide HOW the offer is accepted If the offerer doesn't tell you how to accept the offer, you must accept it ○ as quickly as you received it ○ "Mailbox Rule": once the person puts the acceptance in the mail, it's been accepted - Irrevocable offers: cannot be revoked ○ Ex: you give Spielberg the rights to iethey are his now Advertisements: - NOT an offer; "an offer to come in and bargain" ○ If a Nissan is advertised at a deal on TV and EVERYONE comes in to get one, there's an issue - You can't advertise for something that you don't have ○ "you may look at this one car and want to buy something else" Lucy v. Zimmer (1954) - Lucy: a farmer - Zimmer: had land; at the bar, he told Lucy that he could buy his land, saying "bet you'll take $50,000 for your farm" ○ Zimmer was kind of kidding, but they wrote up a contract and both signed it § Went on for hours, wives got involved… ○ Zimmer regretted it and tried to get out of the contract - Zimmer: had land; at the bar, he told Lucy that he could buy his land, saying "bet you'll take $50,000 for your farm" ○ Zimmer was kind of kidding, but they wrote up a contract and both signed it § Went on for hours, wives got involved… ○ Zimmer regretted it and tried to get out of the contract - Result: Contract was signed, court determined that a reasonable person would've believed he was serious Partial performance Detrimental reliance : situation when somebody makes a promise, and you rely on it, to your detriment Silenceas an acceptance: there's an acceptance as long as there is communication within an acceptance, whether verbal OR ACTION Mistakes: we aren't perfect - Ex: Diet coke example: agreeing to buy/sell a diet coke but COKE SIZE was not clear ○ Can be a mutual mistake or a unilateral mistake - If both people made the mistake, the court will probably find that the contract is not enforceable - If only one of the parties made the mistake, the court will probably find that it IS enforceable