Contracts

A contract is a legally binding agreement between two or more parties who agree to perform or to refrain from performing some act now or in the future.

A promise or commitment to do or refrain from doing some specified thing in the future.

1. Active effort to prevent another party from learning a fact.
2. The concealed fact was material
3. The other party justifiably and actually relied on the misrepresentation.
4. Damages.

1. A mistake made by both parties about the facts surrounding a transaction at the time a contract is formed.
2. Concerning a basic assumption upon which the contract was made.
3. Which has a material effect on the parties contractual exchange.

Cannot enter into a contract.

*minor who is emancipated or married is technically not a minor*

Heavy burden...person has to show how drunk they were. Contracts can be void or valid.

Lucy v Zehmer

Is one that is unjust or extremely one sided in favor of the person who has the bargaining power.

1. Failure to disclose fact
2. A duty to disclose fact
3. The nondisclosed fact was material
4.Another party justifiably and actually relied
5. Damages

1. Active effort to prevent other party from learning fact
2. The concealed fact was material
3. The other party relied on the misrepresentation
4. Damages

1. A mistake by both parties about fact
2. Concerning a basic assumption upon which the contract was made
3. Material

A contract is a legally binding agreement between two or more parties who agree to perform or to refrain from performing some act now or in the future.

A promise or commitment to do or refrain from doing some specified thing in the future.

1. Active effort to prevent another party from learning a fact.
2. The concealed fact was material
3. The other party justifiably and actually relied on the misrepresentation.
4. Damages.

1. A mistake made by both parties about the facts surrounding a transaction at the time a contract is formed.
2. Concerning a basic assumption upon which the contract was made.
3. Which has a material effect on the parties contractual exchange.

Cannot enter into a contract.

*minor who is emancipated or married is technically not a minor*

Heavy burden...person has to show how drunk they were. Contracts can be void or valid.

Lucy v Zehmer

Is one that is unjust or extremely one sided in favor of the person who has the bargaining power.

1. Failure to disclose fact
2. A duty to disclose fact
3. The nondisclosed fact was material
4.Another party justifiably and actually relied
5. Damages

1. Active effort to prevent other party from learning fact
2. The concealed fact was material
3. The other party relied on the misrepresentation
4. Damages

1. A mistake by both parties about fact
2. Concerning a basic assumption upon which the contract was made
3. Material

Cow Case

1. One party must commit a wrongful act
2. The wrongful act must preclude the other party from exercising free will

One party uses violence or a threat of violence to preclude another party from exercising free will. (Blackmail/extortion)

Where one party uses an economic threat to overcome partys will. (Other party had no choice)

sincere belief or motive without malice or the desire to defraud others.

offer+acceptance+mutual assent

Sales

Land

Mutual assent

a promise or commitment to do or refrain from doing something specified thing in the future.

Subject, parties, price

A voluntary act by the offeree that shows agreement to the terms of the offer

1. A clear and definate promise
2. Promisor should reasonable expect to induce action or forbearance
3. Promise does induce such action or forbearance on the party
4. Injustice can be avoided by enforcing promise

is to protect a party that relied on another partys promise even though the technical requisites for a contract have not been met.

1. Lapse of time
2. Death
3. Incapacity
4. Rejection
5. Counter Offer
6. Revocation

A statement that appears to assure a performance and form a contract but, when scrutinized, leaves to the speaker the choice of performance or non-performance, which means that the speaker does not legally bind himself or herself to act.

1. Non disclosure of material facts
2. misrepresentation
3. mutual mistake
4. lack of free will
5. material breach of terms

a contract in which both parties have promised to perform

is that for which the parties have dealt

a contract in which a time period is specified within which an offer must be accepted

A contract in which only one party is obligated to perform

1. Option contracts
2. Contracts involving justifiable reliance
3. Merchants firm offer (in writing)

An offer during a face to face conversation lapses when the conversation ends.

Terms of acceptance must mirror terms of the offer

What was offered must be exactly what is given

Quantity - Time for performance - Parties to the contract - Price - Place for performance - Subject matter

A mistake common to both parties to a contract who were in agreement about the purpose or terms of the contract

1. Predictability
2. Freedom of Contract
3. Fairness
4. Efficiency

agreement

Are not offers, they are invitations for offers.

1. Firm offer
2. Option contract

Is only valid upon receipt

Does not kill an offer.

An offer to sell property may be withdrawn before acceptance without any formal notice to the person to whom the offer is made. It is sufficient if that person has actual knowledge that the perosn who made the offer has done some act inconsistentwith the continuance of the offer, such as selling the property to a third person

Time expired

An offer that is made in response to another and that has additional or differing terms

Offer + Acceptance

1. Revocation
2. Lapse
3. Rejection
4. Death or Incapacity
5. Counter-offer

Refraining from something that one is entitled to do is a sufficient detriment to create an enforceable contract.

Because the services had already been performed before Defendant made the promise, they do not constitute consideration to make the promise enforceable.

A party who refuses to perform and coerces a promise from the other party to pay increased compensation takes an unjustifiable advantage of the necessities of the other party

A statement that appears to assure a performance and form a contract but, when scrutinized, leaves to the speaker the choice of performance or non-performance, which means that the speaker does not legally bind himself or herself to act.

Tom owes Joe $50 and asks Joe for more time. Joe say ok but you'll pay me $550 whenever I want then asks for the money two weeks later.

protect a party who legitimately relies on another party's promise

1. Promise was clear and definate
2. Promisee justifiably relied on promise
3. Promisee suffered a loss
4. Enforcing the promise will be in the best interest of justice

1. Deception
2. Mistake
3. Duress
4. Undue Influence
5. Illegality
6. Incapacity
7. Unconschionability
8. Statutes of Frauds

1. Misrepresentation
2. Non-Disclosure
3. Concealment

1. False statement of fact, intention or opinion
2. Addressing a fact, intention or opinion material to contract
3. Made with the requisite state of mind
4. Justifiably and actually relied on by the other party
5. Caused damage

1. Failure to disclose a fact
2. Duty to disclose a fact
3. Non-disclosed fact was material
4. Party relied on state of things in absence of fact
5. Damages

1. Active efforts to conceal
2. Concealed facts were material
3. Party relied on misrepresentation
4. Damages

Mutual Mistake
1. Mistake made by both parties
2. Concerning a basic assumption of facts
3. Material

1. One party must commit a wrongful act
2. Thre wrongful act must preclude the other from exercising free will.

A judicially created defense to transactions that have been imposed upon weak and vulnerable persons that allows the transactions to be set aside

a promise by one party not to work in a competing business or to open a competing business

1. Contracts prohibited by statute
2. Contracts in violation of licensing statutes
3. Convenants not to compete
4. Tangential illegality

1. Infants (minors)
2. Mental Ilness
3. Intoxication

One sided contracts