BUS 3350 Study Guide Test 2 Chapters 9 10 and 11 Contracts Formation Contract Performance Breach Remedies and Sales and Lease Contracts Warranties 1 Identify the parties to a contract 2 Identify the elements for a legally binding contract Agreement Consideration Contractual Capacity Legality Other Requirements o Voluntary Consent o Form 3 Understand the differences between bilateral and unilateral contracts Bilateral A promise for a Promise Unilateral A promise for an Act Define the term quasi contract Obligation of one party to another imposed by law Not an actual contract 4 5 Identify the terms needed for a valid offer acceptance and consideration under common law and UCC 1 Offeror s serious intention judged by what a reasonable person would conclude about offer 2 Definiteness of Terms identification of parties subject matter of contract consideration to be paid time of payment 3 Communication to Offeree Directly by the offeror or use of agents 6 7 8 Identify the ways rejection may occur Rejection Rejected by the one being offered the deal Counteroffer reject original offer and simultaneously make a New Offer Define the mirror image rule Any change in terms will terminate the offer and substitutes with a counter offer Define consideration and explain the requirements for valid consideration 9 Identify the difference between valid void and voidable contracts Valid there is an Agreement Consideration Contractual Capacity and Legality Can be enforced Void No Contract Voidable A party has the option of avoiding or enforcing the contractual obligation Unenforceable contract exists but certain legal defenses against it Identify the circumstances that allow a contract to be rescinded Fraud Mistake Duress Undue Influence Misrepresentation Lack of capacity to contract By statute 10 11 Define third party beneficiary One for whose benefit a promise is made in a contract but who is not a party to the contract Define specific performance and understand when it may be ordered by the court The performance of the act promised in the contract o Sale of Land o Personal Services 12 13 14 15 Define novation and accord and satisfaction Novation Both parties agree to substitute a 3rd party for one of the original parties Accord Contract to perform some act to satisfy existing contractual duty Satisfaction Performance of accord agreement o Accord and satisfaction Parties agree to accept performance that is different from original contract Identify the contracts where statute of frauds will apply Contracts involving Interest in land Contracts involving One Year rule Collateral or Secondary contracts Promise made in Consideration of Marriage Contracts for the sale of goods priced at 500 or more Identify when a contract is unconscionable When the bargains are so unscrupulous or grossly unfair they are to be void of conscience 16 17 Identify the circumstances where commercial impracticability will apply When the performance becomes much more difficult or expensive than the parties originally contemplated at the time Explain the different types of warranties express and implied Expressed a seller s written or oral promise to underlying sales lease agreement as to the quality description or performance of goods being sold leased Implied A warranty the law derives by implication from the nature of the circumstances of the parties Chapter 12 Torts 1 List the types of invasion of privacy Use of a person s name or likeness Intrusion of individual s affairs or seclusions Publication of information that places a person in false light Public disclosure of private facts Define respondeat superior Let the master answer A party is responsible for their agents Employer and employee at work 2 3 4 5 Define and understand the difference between contributory negligence and comparative negligence Contributory Plaintiff caused his own injury barred from recovery Comparative computes liability of plaintiff and defendant and apportions damages o Pure Plaintiff can recover even if their damages are greater o Modified The Plaintiff s is subtracted from the Defendant s Define the requirements required by the U S Supreme Court to establish a defamation claim by a public figure Actual Malice o A statement made with either Knowledge of its falsity or a reckless disregard of the truth Define the intentional torts of assault and battery and understand the difference between them 6 7 8 9 Assault Creates fear of immediate harmful or offensive contract no contact necessary Battery completion of assault harmful offensive unwelcomed Physical contact Define assumption of the risk Plaintiff has knowledge of risk and still voluntarily engages anyways o Can be used with spectators and bystanders Understand the difference between libel and slander Defamination Hurting a person s good reputation Libel Defamination by print media internet Slander Defamination by speaking orally Define and understand causation and proximate cause Causation in fact was the injury occur due to Defendant s act or would it have happened anyways Proximate Connection between act and injury is strong enough to justify imposing liability Define and understand the elements required for proof of negligence 1 Duty Defendant owed a duty of care to plaintiff 2 Breach Defendant breached that duty 3 Causation The breach caused the plaintiff s injury 4 Damage Plaintiff suffered a legally recognized injury Chapter 13 Strict Liability and Products Liability 1 Define and understand the differences between manufacturing design and inadequate warnings defects for products 2 Define unavoidably unsafe products 3 Identify the appropriate situation for bringing warranty actions against a seller in products liability law 4 Define and understand the difference between statute of limitations and statute of repose Limitations restrict the time within which an action may be brought Repose Outer time limits on product liability actions Define the requirements to prove a negligence claim in products liability cases Duty Breach Causation Damage o Due care not exercised o Privity of contract not required 5 6 Identify those who can be sued in the chain of distribution Manufacturers and the suppliers of the parts they used 1 2 3 4 5 6 Identify the elements necessary to prove a products liability case Product must be in defective condition when sold Defendant is in the business of selling the product Product must be unreasonably dangerous Plaintiff must be physically harmed Defective condition