Law: Elements of a Contract - Study Notes PDF

Contract → a promise that the law will enforce Elements of a Contract 1.​ Offer 2.​ Acceptance 3.​ Consideration 4.​ Legality 5.​ Capacity 6.​ (some require writing and consent) Common Law → deals with services and real estate UCC → deals with moveable goods Promissory Estoppel –...

Contract → a promise that the law will enforce Elements of a Contract 1.​ Offer 2.​ Acceptance 3.​ Consideration 4.​ Legality 5.​ Capacity 6.​ (some require writing and consent) Common Law → deals with services and real estate UCC → deals with moveable goods Promissory Estoppel – helps enforce promises. not a contract, but there is a promise. Even without a contract, the court can enforce the promise to avoid injustice. Quasi Contract – a way to fix situations where someone unfairly benefited from another. For example, if goods that you didn’t order arrive at your house and you use them, you might be required to pay for them. Quantum Meruit – the plaintiff gets what they deserve Bilateral contract – a promise for a promise Unilateral contract – one party makes a promise to another. They can only receive what’s promised if they do something specific. The only unilateral contract is a reward. Expressed – two parties explicitly state the terms of the contract. Implied – words and conduct indicate that there’s a contract (like buying groceries at Kroger) Valid – satisfies all the law’s requirements Unenforceable Contract – parties intend to form a contract, but the law prevents it from being enforced (Statute of Frauds) – Agreements that are unenforceable unless in writing and signed These include… 1.​ For any interest in land 2.​ Services that cannot be performed within one year 3.​ To pay the debt of another 4.​ Any promise made by an executor of an estate 5.​ Made in consideration of marriage (or termination of a marriage) 6.​ For the sale of goods over $500 Voidable – may be terminated by one party (the party that lacks capacity) Minors and the mentally imparied lack capacity. Minors can disaffirm a contract, meaning they can notify the other party that they refuse to be bound by the agreement. Restitution – a minor who disaffirms a contract must return the consideration they received to the extent that they’re able. If they bought a car Consumer Review Fairness Act – consumers can share honest opinions Expressed Warranty – guarantee Implied Warranty – recommendation Bailor – person giving up possession of something Unconscionable Contract – one that a court refuses to enforce because of fundamental unfairness. The two factors that most often lead a court to find unconscionability are 1.​ Oppression – one party used its superior power to force a contract on the weaker party 2.​ Surprise – the weaker party did not fully understand the consequences of the agreement Illusory Promise – if one party’s promise is conditional, the other party is not bound to the agreement. It’s not consideration, not enforceable, and not a contract. Mailbox Rule – acceptance occurs upon dispatch of the offeree’s acceptance Exculpatory Clase → limits liability for injury to a party Ex. written on the back of a basketball game ticket that reads “Fan agrees to hold team blameless for all injuries. Pay attention to the game at all times for your own safety! Innocent Misrepresentation – the owners thinks the statement is true Duress/Economic Duress – If one party makes a threat that causes the victim to enter into a contract, with no reasonable alternative, the contract is voidable. In analyzing a claim of economic duress, courts look at these factors: 1.​ Acts that have no legitimate business purpose 2.​ Greatly unequal bargaining power 3.​ An unnaturally large gain for one party 4.​ Financial distress for one party Uniform Electronic Transactions Act (UETA) – makes electronic contracts valid in all states Undue influence – pressure exerted by one party over another Commercial Impracticality – some event has occurred that neither party anticipated, making the contract extraordinarily difficult and unfair to one party. Statute of Limitations – limits the time the injured party can file a lawsuit 5 years on a written contract 3 years on an unwritten contract Consequential Damages – based on foreseeable injury. result from the unique circumstances of the injured party. Perfect Tender Rule – a buyer can reject goods that don’t meet contract specifications Reliance Interest – designed to put the injured party in the position they would have been in had the parties never entered into a contract. Adhesion Contract – prepared by one party and given to the other on a “take it or leave it” basis.