lBLAW 20131st EditionExam# 2 Study Guide Lectures: 11 - 19Lecture 11(February 11th)Contracts pt. 1- Elements of a contract:o Mutual agreemento Considerationo Capacity of the partieso Legal Purpose- In contract law, the legislature created the Uniform Commercial Code: constitutes part of the law of contractso Set of statutory enactments that governs commercial transactions- Difference between bilateral and unilateral contractso Bilateral: mutually exchanged promises 2 promises: promise to sell, promise to buy (most commonly used)o Unilateral: one chooses to perform act demanded by promisor  Promise in exchange for the performance of an act Must perform deed in order for the contract to be accepted- Fully performed – executed - Not fully performed – executory- If contract is entered into for an illegal purpose it is void- Advertisements do not constitute offers. They are invitations to negotiate, not offers that can be accepted- One can withdraw an offer at any time up until it is acceptedLecture 12 (February 13th) Contracts pt. 2- If one makes an offer and the other side counter offers, then the counter offer takes the original offer off the tableo The original deal is not available anymore- Preexisting duty rule: involves a contract that someone wants to renegotiate in order to receive more compensation for the jobo The second contract is unenforceable because they are already obligated to perform that act anyways- If one of the parties is uner 18, the minor has the right to disaffirm only before they turn 18- Illegal gaming: a person is asked to purchase something in order to qualify for a prize, this is a void contracto Legal gambling in Arkansas: horse races, dog races, charitable bingo/raffles, state-run lottery- Licensing: if a license is issued for the protection of the public, it is regulatory in nature. o An individual is not able to enforce contracts without the proper license when protecting the publicLecture 13(February 18th)Contracts pt. 3- If one enters into an employment contract and it has a non-compete agreement, it is enforceable if there is a valid business interest to protect, and it covers a reasonable time and area- Reasonable area: area that an employee is servicing for employer- Misrepresentation – if entered into contract negotiations and one makes a mistake and communicates incorrect information about a producto Would allow the cancellation of the contract- If mistake is not fraud, it is misrepresentation- Statute of frauds: contract must be in writing in order to be valido Especially contracts involving land!o Contract cannot be completed in one yearo Sale of goods greater than $500- Parole evidence rule: cannot perform oral testimony to contradict terms of a clear written instrument- Contract remedies: condition: - an event that must occur first before a contract can be enforcedLecture 14(February 20th)Contracts pt. 4- Substantial performance rule: involves performance of a contract not quite up to standardso If person performing duty believes it is up to standards, as long as they are in good faith they are entitled for full contract price less what has not been adequately completed Must be in good faith and job must be close to adequate- Contracts that can be terminated – contract that statute of limitations is pasto Contracts where one party files for bankruptcyo Contract in which the law has been changedo Contract in which it is impossible to perform duties- Cannot receive punity of damages in contract case- Remedy in equity called specific performance or injunction – asking someone to refrain from doing somethingo Example of an injunction: not asking for money, asking judge to order someone to do something- Remedies at law are called “damages”Lecture 15(February 23rd)Torts pt. 1- 2 categories: intentional and unintentional- Intentional: difference between assault (apprehension of physical contact) and battery (physical contact)- Shopkeepers’ privilege – must have 3 things:- Reason of suspicion, detain in a reasonable manner, reasonable length of time- Doesn’t apply to defamation- Defamation: false statement communicated to a 3rd person that damages that person’s character or reputation. If victim is public figure then additional element is malice (knew what they were saying is untrue but said it anyways)Lecture 16(February 25th)Torts pt. 2- Wrongful interference with contract: someone causes another to quit their job under contract for their own benefit – illegal- Unintentional tort: always on test! Identify 4 elements of unintentional tort (negligence)- Duty, breach of duty, causation, damages- Shannon vs. Ashworth: reversed Arkansas law that held that the act of knowingly selling liquor to minors is an act of negligence the same as negligence resulting in injury or death- Changed Arkansas case law, making it now an issue for the juryLecture 17(February 27th)Torts pt. 3- Pauls Graph vs. Long island railroad – foreseeable risk - famous negligence case – our victim must be in the area of foreseeable risks that defendant should have known existed and should have taken action.- Comparative fault will be on test – know how to compute ito Look at amount of damages that jury determines plaintiff is entitled to and subtract fault jury contributes to plaintiff.- Arkansas tort reform: put a cap on punitive damages – you don’t get punitive damages on negligence but you do in torts- Strict liability – being held accountable for injury without a question of faulto Activity that is so dangerous where you will be held accountable no matter whato Products liability - Making and selling a product that is in an unreasonably dangerous defective condition. Must be a professional seller. Person is hurt by it. Does not have to be the one that bought the productLecture 18(March 2nd)Collection Law pt. 1- Limit of liability on lost or stolen credit card (only!) at $50 per card- Statutory lean – designed to protect people in construction industry who supply labor or materials if they aren’t getting paid – on test if someone in construction industry isn’t getting paid = statutory lean- Security transaction – if creditor isn’t getting paid, they can possess collateral and property is sold. If they cant pay creditor in whole they they get deficiency judgement (difference b/t what is sold to creditor and what collateral brings)- Usury law – Arkansas has it! Set at 17% per anum. If someone is paying more than 17%