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70 Cards in this Set
- Front
- Back
Objective Theory of Contracts
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Courts judge each parties intention to enter into a contract. |
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Contract Elements (x4) |
1 Agreement (Offer & Acceptance) 2 Consideration 3 Capacity 4 Legality |
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Bilateral vs Unilateral |
Promise for a promise Promise for an act |
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Executed vs Executory |
Completed (past tense) Incomplete |
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What is the purpose of Quasi Contracts? |
To avoid one party from being unjustly enriched
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When can a Quasi Contract not exist |
When there is an actual contract present |
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Interpretation: Plain Meaning Rule |
When a contracts writing is clear, a court will enforce it according to it's terms. If it is ambiguous, courts look at extrinsic evidence & disfavor the drafter of the contract. |
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Contract Agreement: Offer: Elements (x3) |
1. Serious Intent 2. Certain Terms 3. Communicated to the offeree |
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Contracts: Agreements: Examples lacking "serious intent" (x3) |
1. Opinion
2. Future Intent 3. Preliminary Negotiations |
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Agreements to Agree vs Preliminary Negotiations |
If the essential terms have been decided on and agreed upon -> that is an Agreement to Agree. Binding in Court |
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Example of a irrevocable offer? |
Option Contracts. "Give me the option to purchase in the next 60 days" |
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The Acceptance of the Offer must mimic the offer in regards to terms. If not, a new contract is drafted. |
Mirror Image Rule |
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Mailbox Rule |
Authorized Communication: Acceptance occurs went sent. Un-Authorized Communication: Acceptance occurs when received. |
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Rule of Online Offers (x2) |
1. Clear Terms 2. Available |
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Open the package of goods, and inside the box contains terms and conditions that you've implicitly accepted because you chose to open the box |
Shrink Wrap Agreements |
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E Sign Act |
Allows States to enact alternative requirements instead of Uniform Electronic Transactions Act |
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Contract Consideration Elements (x2)
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1. Something of Value 2. Not a Gift. (Bargained for Exchange) |
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When consideration is challenged by a court? |
When consideration is grossly inadequate. |
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Examples that lack Consideration (x3) |
1. Pre-existing Duty 2. Past Consideration 3. Illusory Promises "I'll give you $1, if i feel like it" |
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Contract that lacks Consideration: Settlement Options: (x3) |
1. Accord & Sanctification "Agree on Smaller Amount" 2. Liability Release 3. Covenant not to Sue. |
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Accord vs Satisfaction |
Accord = Agreement Satisfaction = Payment |
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Release vs Covenant not to sue |
For covenant not to sue: "Pay me $5K for damages, and I won't sue you" |
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Liquidated Debts vs Unliquidated Debts |
Liquidated = Determined Unliquidated = Un Determined |
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When there is no consideration, parties might have damages. "Quasi Consideration" |
Promissory Estoppel |
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Contracts: Examples that Lack Capacity: (x3) |
1. Minors 2. Intoxication 3. Mental incompetence |
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When minors attempt to get out of a contract |
Dissaffirmance. |
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What is the age limit for minors to enter into contracts and disaffirm |
Eighteen and a reasonable age over. |
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Minors can disaffirm, unless... (x2) |
1. They lied about their age. 2. Contract was for Necessities |
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Contract: Capacity:
Intoxication Defence |
Prove that you were unable to understand the legal consequences at the time. |
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Contract: Capacity:
Mental Incompetence: When is Incompetence determined? |
At the time the contract was signed |
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Conservator vs Guardian |
Financial Information Well-being |
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Contract Legality: Licencing When a party lacks a licence, when is it enforceable and unenforceable |
Enforceable - Licence is for governmental revenue Unenforceable when the purpose of the licence is to protect the public from malpractice |
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Contract: A clause written in, that releases a party from liability regardless of who is at fault |
Exculpatory Clause |
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Illegal Contracts might be enforceable when, (x2) |
1. Justifiable Ignorance of the Illegality (trucker) 2. Party is a Protected class (Airline Attendants) |
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Illegal Contract Examples: (x3) |
1. Fraud - misrepresentation 2. Duress - illegal forcing 3. Undue Influence - dominant influence |
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Unconscionable contracts |
Gross unfairness, Usually just revise the terms. |
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ILLEGALITY Substantive unconscionability vs Procedural unconscionability |
Substantive: Occurs when contracts are oppressive or overly harsh. "Substance"
Procedural: The Procedure regarding signing the contract was unfair to the party. Example: Lack of opportunity to read, inconspicuous print, bad language. |
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Mistakes of Fact vs Mistakes of Quality |
If a Mistake of Fact occurs, it is possible to cancel the contract,
If a Mistake of Quality occurs, it is enforecable |
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Contracts: Fraudulent MIsrepresentation: Elements (x4) |
1. Misrepresentation 2. Intent to Deceive 3. Reliance on the deception 4. Damages |
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Contractual Fraud: Misrepresentation exception |
An Opinon.
Unless the opinion comes from a qualified person (dance instructor example) |
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Contractual Fraud, When there is no intent, damages cannot be awarded, unless... |
There was an Innocent / Accidental Misrepresentation |
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Contracts: When one party dominates another to the point that one party is determined to not have free-will |
Undue Influence |
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Contracts: When one party forces another party to sign through the use of blackmail / extortion |
Duress |
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Duress
vs Undue Influence |
Duress: Active Threat Undue Influence: Positional |
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Bilateral Mistakes of Fact: |
Both parties can rescind or "cancel" the contract |
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"Rescission of a Contract" Meaning |
Cancel the Contract |
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Unilateral Contract: Mistake of Fact Enforceable. Exceptions (x2) |
1. If the other party knows a mistake has been made and wants to take advantage of the other party. 2. Error was due to a substantial mathematical mistake. |
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"Take it or Leave it" Contract |
Adhesion Contract or Standard Form Contracts |
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Strict Liability Requirements (x6) |
1. Defective @ the time of selling 2. Business of Selling 3. Unreasonably Dangerous 4. Improper Use 5. Proximate Cause 6. Item has not changed significantly |
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Defenses to Strict Liability (x6) |
1. Assumption of Risk
2. Product Misuse 3. Comparative Negligence 4. Common Known Dangers 5. Knowledgeable Users 6. Statute of Limitations |
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Negligence per se
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When a statute or law is broken -> Also causes damages to other person "Criminal Negligence" |
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Business Torts: When "Party C" knows of a contract and interferes with it |
"Wrongful Interference with a contractual obligation" |
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Absolute Defense to Slander & Libel |
Truth |
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Purpose of Tort Law |
Compensate those for damages Like "Law of Equity" |
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The government must give a person a proper notice and an opportunity to be heard |
Due Process (Procedural)
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When the government creates legislation, they must further a governmental objective |
Due Process (Substantive) |
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The Federal Government gives states the right to protect the well-being of it's citizens |
State Police Power |
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Establishes the Constitution as the "Supreme Law of the land" |
Supremacy Clause
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When the defendant doesn't show up and the Plaintiff is awarded judgement on the case |
Default Judgement
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To properly bring a legal case, You must have "a stake in the matter" |
Standing to sue |
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To get your case reviewed by the Supreme Court, you get a... |
Writ of cerceari |
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Writ of Cerceari |
To get your case heard by the Supreme Court |
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Out of all the ADR (Alternative Dispute Resolution) Methods, Which one/s are binding? |
Just Arbitration. |
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Example in which Arbitration is not binding? |
If it causes an undue burden on a party. For example, the case could be heard in San Francisco. Lame! |
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Promissory Estoppel |
Enforceable Contract No Consideration It would be unfair otherwise |
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Negotiated Debts vs UnNegotiated Debts |
Liquidated
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When there is an agreement to pay less than original amount. |
Accord and Satisfaction |
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Consideration cannot be a gift. |
Bargained for Exchange |
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1. Serious Intent 2. Reasonably Certain Terms 3. Communicated to other party |
Elements of Offer |
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Libel and Slander are examples of |
Defamation |