LSB 3213 1st Edition Lecture 10 Current Lecture Today Discuss Exams 1 and 2 Begin Contracts section Recap Exam 1 Nice work Average scores o 80 after curve higher than the other course Highest scores curve o Highest 106 o Curve 1 question 3 points Preview of Exam 2 Will be over just contracts the longest section o Will be a more concentrated exam just on contracts Study guide in advance like exam 1 Same exam format Syllabus Changes Both quizzes cancelled o Would have been only five questions and not worth the extra effort of studying for a short quiz before the exam There will be a couple more extra credit questions on Exams 2 and 3 to make up for the lack of quizzes Possible extra credit challenge assignment at end Guest speaker from Innovation to Enterprise on 3 26 at 2 00 pm in ES 317 Current Events Immigration laws o Presidential Executive Order to allow illegal immigrants into the country and states will have to provide documentation for them o 26 states sued Started in the Federal District Court in Texas appealed to 5th Circuit Court in New Orleans LA These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Sued for an injunction stop enforcing the executive order Issued a preliminary injunction because it would cause irresponsible harm Stopped the operation of the law Warrants to inspect businesses o City in Florida s sheriff s office planned an armed raid on numerous locations arresting people on the spot at barber shops that did not have barbers business licenses Arrested barbers sued and went to Federal District and Circuit Court for Due Process and Search and Seizure violation Police claim that it was a routine administrative inspection the court says no it is not a routine inspection when using a raid also proved to be a Due Process violation Contracts Why Study contracts Practical reasons o Contracts are everywhere the backbone of how businesses run Philosophical reasons o Most things in law relate to some philosophical reason Contract Law answers the following questions What kind of promises contracts are protected by law What if you change your mind If you do fail to keep your word how do you compensate pay for that What is a contract A promise carrying an enforceable legal duty with an enforceable legal remedy for breach Contract Scenarios Jack and Jill negotiate for tickets to OSU OU football game Four components of a contract Scenario 1 Jack pays 200 Deal Jack will bring Jill the money for the tickets tomorrow Jill does not say yes or no Contract component 1 AGREEMENT from both sides doesn t have to be in writing Scenario 2 Jill says have the tickets I m going to the beach anyways Jack says great takes the deal and doesn t pay for anything o This would be considered a gift and gifts are not considered a contract If Jill had instead said if you buy my 2 coffee I will give you the tickets that are worth 100 o Because Jill put a value on it the exchange is not considered a gift Contract component 2 CONSIDERATION Skin in the game Scenario 3 Jack and Jill meet at a restaurant to discuss the deal over dinner After a long dinner with lots of wine Jack pays 1 000 for the tickets and Jill writes the deal on a napkin and both of them sign it o Jack then decides not to take the deal and Jill sues him and presents the napkin with the signed agreement Jill loses o Jack was incapacitated and Jill KNEW that he was incapacitated Contract Component 3 CAPACITY Scenario 4 Jack pays agrees to pay 100 for the tickets Jill then says that she is having car problems and needs to get her car fixed She tells Jack that she has an insurance policy that means that if someone just randomly came and destroyed her car they would pay to replace it So Jack goes to Jill s house and destroys her car and brings 100 to Jill the next day for the tickets but she decides to not take the deal o Jack sues Jill and wins Contract Component 4 LEGALITY o Has to be based on a legal activity this was not legal Things that will carry over from Exam 1 to Exam 2 Four schools of legal thought o Natural Law o Legal Realism o Historical Approach o Positive Law Common law o Contract law is largely common law o Different than subject of LSB 4323 Law of Commercial Transactions Uniform Commercial Code UCC o Judge made law stare decisis precedent Schedule Thursday finish Chapter 11 Next week Chapters 12 and 13