Questions and Answers
What is the primary focus of a litigator when analyzing a case?
What is the outcome of a litigator's analysis in a negligence case?
What is the key difference between the analytical skills of litigators and deal lawyers?
What is the goal of a deal lawyer when drafting a contract provision?
Signup and view all the answers
What are the 'facts' for a deal lawyer?
Signup and view all the answers
What is the primary analytical skill of a deal lawyer?
Signup and view all the answers
What is the relationship between contract concepts and business deals?
Signup and view all the answers
What is the result of a deal lawyer's analysis of a business deal?
Signup and view all the answers
What is the primary purpose of understanding contract concepts in drafting a contract?
Signup and view all the answers
Which of the following is NOT one of the seven contract concepts?
Signup and view all the answers
What is the primary difference between a representation and a warranty?
Signup and view all the answers
What is the relationship between a right and a covenant?
Signup and view all the answers
What is the purpose of a condition in a contract?
Signup and view all the answers
What is the primary purpose of a declaration in a contract?
Signup and view all the answers
What is the primary difference between discretionary authority and a covenant?
Signup and view all the answers
Why do drafters choose from among the seven contract concepts when memorializing the business deal?
Signup and view all the answers
Study Notes
Contract Concepts
- Seven essential contract concepts: representations, warranties, covenants, rights, conditions, discretionary authority, and declarations
- These concepts form the foundation of every contract, serving different business purposes with distinct legal consequences
Representations
- A statement of a past or present fact made to induce a party to act
- Examples: a seller's claim that a property is free of defects or a buyer's statement of their financial capability
Warranties
- A promise to indemnify the other party for damages if the representation is false
- Example: a seller's warranty that a property is free of defects, promising to compensate the buyer if it's not
Covenants
- A promise to do or not to do something, creating a duty to perform
- Example: a buyer's covenant to make regular mortgage payments
Rights
- The flipside of a covenant, entitling a party to the other party's performance
- Example: a buyer's right to receive the property title after fulfilling payment obligations
Conditions
- A state of facts that must exist before a party is obligated to perform
- Example: a buyer's obligation to purchase a property is conditional upon securing financing
Discretionary Authority
- A party's choice or permission to act, sometimes subject to the satisfaction of a condition
- Example: a landlord's discretionary authority to terminate a lease if the tenant breaches the agreement
Declarations
- A fact agreed upon by both parties, often a definition or policy for contract management
- Example: a declaration stating the property's boundaries and any easements
Translation Skill
- The analytical skill of determining which contract concept best reflects the business deal
- Requires the drafter to translate the business deal into contract concepts to memorialize it in a contract provision
Comparison with Litigators
- Litigators take the law and apply it to the facts to create a persuasive argument
- Deal lawyers start from the business deal and find the contract concepts that best reflect it
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn about the fundamental concepts of contract law, building blocks that express the parties' business deal. Understand how to assemble them to create a contract and express provisions clearly.