Elements of a valid contractHSP_MGMT 1133 1st Edition Lecture 17Outline of Last Lecture I. Zoning LawsII. Trademark and trademark infringementIII. Copyright and copyright infringementIV. Performing rights licensing agenciesa. FIMLAV. Safety and property loss claimsa. Hotelsb. Bailmentc. Lost and found situationsOutline of Current Lecture VI. Elements of a contractVII. Statute of fraudsVIII. Breach of contracta. Remedies for breach of contractCurrent Lecture:Elements of a valid contract(1)Legality- terms have to be legalVoid K- Ex: private gambling contracts(2)Capacity- people involved in the contract have to have the capacity to make the contract; aka they have to know what they are doing with a sound mindVoidable K- Two issues: Age and Mental stateo Must be 18 years of age, if they are under age 18 it can be considered voidableo Cannot be extremely intoxicated, or dementiaThese 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.Differences between Void and voidable contracts - A court cannot enforce a void contract, but they can enforce a voidable contract if the party lacking capacity wants it to be enforced- Voidable contracts involve people, void contracts involve issues(3) Mutuality- must be a meeting of the mindsExample “I need someone to install a 3x5 sign at my business” Follow up “What type of sign and what materials?” Reply- “I’ll do it for 500 dollars” Offer- someone makes a specific proposal saying they will do x work for x dollars Acceptance- someone agrees to this proposal and there is a “meeting of the minds” (4)Consideration- what each side is giving up in order to make the contractEx: ^one side would build the sign, and one side would pay the money Forms of consideration: Tangible or a promise Performance or a promise Forbearance or a promise- agreeing not to do something that they have a right to do (5)Forms—Writing?- Oral contracts are valid contractsStatute of Frauds- says that certain contracts have to be in writing- Contracts involving the sale, mortgage, or lease of land; contracts that cannot be performed with in one year of their making; contracts that involve the sale of property over $500 in valueHow extensive should the writing be?- Marriage contracts must be in writing- If a written contract is used the writing should contain all the terms discussed and agreed.- PAROL EVIDENCE RULE-prevents prior or contemporaneous statements from being introduced to modify terms of a written contract; you must make sure everything you want is in the written contract because you can’t change anything once its writtenBreach of Contract-----requirement of a" material breach"- one side fails to perform what they promised to performRemedies for breach of contract-Damages - Requirement of showing- Foreseeability- Certainty- Mitigation- plaintiff tried to reduce his damages before going to courtEx: landlord and tenant have a lease agreement and tenant pays $500/mo for 12 months. He vacates the property after 2 months. The landlord cannot sue the tenant unless he has tried to lease out the room and couldn’t. then he can sue the tenant for the money
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