Lsb 3213 1st Edition Lecture 20 Current Lecture Schedule Today o Review for Exam 2 with clickers o Complete extra credit assignment Exam 2 on Thursday o In class exam at regular time in regular classroom o Bring your own green scantron form and a pencil o Arrive early to check in with picture ID o 33 questions plus 3 extra credit questions 100 points o 10 True False 15 short multiple choice 8 long multiple choice Studying for Exam 2 PowerPoints and study guide on D2L Extra credit assignment on D2L First step learn contract law terminology Second step apply concepts review scenarios examples from class Material from Exam 1 also on Exam 2 Four Legal Philosophies o Natural Law o Legal Realism o Positive Law o Historical Approach Common Law o Judge made law Precedent Stare decisis Practice Questions Focus on principles not on memorizing the questions Class notes best study guide Practice questions are a sampling for discussion purposes Practice questions must fit on a PowerPoint slide 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 1 Joe has a hand shake agreement to deliver animal feed to a ranch for 450 per delivery He will make 6 deliveries 1 every 3 months Each delivery costs Joe 50 so his profit margin is 800 Enforceable contract a Yes meets four criteria agreement consideration capacity legality 800 profit not relevant unless there is a chance of fraud b No must be in writing if it will take more than a year to complete impossible to complete within twelve months 2 Julie lists 10 planes for 10 million Mary offers 5M Julie counters at 8M Mary counters at 7M Julie is silent Mary hears Julie might sell to Tom so Mary sends acceptance at 8M to Julie via FedEx Before receiving FedEx delivery Julie agrees to sell to Tom for 8M Who gets the planes a Mary mailbox rule b Tom Julie counter offered at 7 million so the 8 million offer is off the table Mary doesn t have the power to accept the offer it is no longer a valid offer c Julie keeps them can t happen as there is a valid contract d Mary gets 5 and Tom gets 5 courts don t make up contracts giving 5 to each they enforce the contract the result would be the same if the agreement was received and then Julie accepted Tom s offer because Mary had no ability to accept the offer it could be considered as Mary s counter offer 3 A marketing intern and her boss discuss the intern s idea for a new novel The boss is also an author They verbally agree that if they co author a book they ll split the proceeds based on each person s contributions to the book The internship ends Two years later the boss publishes his own novel that borrows from the intern s manuscript Is the intern likely to succeed in court a Yes due to breach of contract If there was a binding contract this could be true but there is no agreement and the contribution is unclear based on each person s contribution b Yes due to unjust enrichment no promise the promise would only be if they co authored the book but the boss wrote the book himself the boss took advantage of the intern and profited at the expense of the intern one person in a powerful position one in a weak position c Yes due to promissory estoppel the intern did rely on the promise and this was the only way to avoid injustice but the promise was not clear d No the intern failed to bargain for a binding contract there is no good contractual claim B and C can both be considered used when there is NO CONTRACT 4 Sally is selling a popular restaurant near campus There are many potential buyers On Monday Bob says On Friday I ll pay 10 more than your best offer Sally says okay we ve got a deal On Wednesday Sally signs a deal with Ana to sell the restaurant for 1 million but Sally tells Ana not to publicly announce the deal until Saturday On Friday Bob arrives with 1 1 million Sally demands 1 5 million and Bob reluctantly signs a contract for 1 5 million Everybody sues In court who likely gets the restaurant a Ana for 1 million There is an option contract between Sally and Bob that is not valid as there is no consideration to hold the contract open so Ana would get the contract b Bob for 1 1 million the contract has to be in writing and isn t and because there is no consideration there is not a valid option contract c Bob for 1 5 million again the contract isn t in writing and Ana s contract came first if the option contract had been valid he would only have to pay 1 1 million d Sally because there was no valid sale real estate has to be in writing there was not an option contract between Bob and Sally so there was no consideration to keep the offer open 5 Assume OSU has contracted with a builder to expand student exercise facilities on campus The contract requires the builder to obtain extensive student input on the type of facility to construct which the builder does But the builder fails to perform on time OSU refuses to sue the builder s family is a large OSU donor The new targeted completion date is now just after your anticipated graduation date Can you and other students sue to enforce the contract a No you lack contractual privity yes no student signed the contract but this would only be correct if 3rd party beneficiaries were not an option b No you are an incidental 3rd party beneficiary residents of Stillwater or those not related to OSU are incidental 3rd party beneficiaries because they would be affected by the contract not students c Yes you are an intended 3rd party beneficiary the contract was designed to benefit students directly and involved students d Yes but only if OSU assigns the contract to students OSU doesn t have to assign the contract to the students this is not relevant to 3rd party beneficiary law 6 Jack and Jill meet to discuss the sale of Jill s football tickets There is a video recording of the meeting Jack signs an unambiguous contract to buy the tickets for 2 500 The market value is approximately 500 The next day Jack refuses to pay and Jill sues to enforce the contract Will the court consider the video evidence a No the market decides the amount of consideration this is not relevant to the validity of the contract b No due to parol extrinsic evidence rule the court will only look inside the four corners of the written contract if there is a valid reason c Yes if Jack argues mistake or misrepresentation there is a reason to look outside the …