Most involve promises not all promises are contracts Does not have to be in writing Agreement between two parties whereby one party the offeror or promisor agrees to do refrain from doing something for consideration of the other party authoree or promisee Chapter 6 Contract Legal binding promise Relationships One party in control one that follows o Boss executive managers workers This is recognized in contract law Contract Components Agreement o o o o o Offer and Acceptance Offeror can decide whom he wants to do business with Advertisements are not offers Catalogs websites price tags barcodes are invitations not offers Offers Intentional communication with the person that wants to do business with Must have definite terms price parties time quantity subject matter Has to communicate acceptance Mirror image rule does not apply for the sale of goods under UCC Once an offer has been put out the offeror can take back the offer prior to it being accepted mirror image Exception Firm Offer Rule only applies to merchants Terminate Death insanity lost stolen destroyed bankruptcy Mail Box Rule Upon dispatch when the offeree accepts the offer when it is dispatched sent acceptance needs to occur then Consideration each party has to provide something volunteering to the other Money Labor service Asset Neutrality of those two promises They do not have to be equal A promise to bestow something of value on someone without return gift not consideration on both sides Capacity mental ability of a person Recognizes mental disability ergo special rules that protect them Normal people cannot take advantage of them Volunteering Consent Parties have to do transaction willingly Legality mandates of the jurisdiction Writing Requirement Statue of frauds Has nothing to do with frauds Certain kinds of business transactions that requires a written document 4 distinct ways that contracts decoded Form of the promise must be one of them Bilateral Unilateral Two promises but each party makes a promise Promise for a promise Example will you build me a home Yes I will build you a home Promise not for a return promise but for a performance Build me a home Uniform Commercial Code UCC Applicable to business transactions to the sale of goods Property UCC would not have application to other types of transaction like real estate OH must notify the intent to commit Mode of Communication Express Contract Actual communication between the parties Contract implied in fact No communication between parties but there is conduct that implies that the parties will do a business transaction Example Doctors don t talk about price but the doctor can bill you for their services Contract that is implied in law quasi contract No expressed communication not neutrality of conduct but something transpired between them Legality or the enforceability of the contract Valid contract Void Contract Voidable Contract All 5 or 6 elements have been met and complied with Each party has rights and responsibly that they made together No contract not rights nor responsibility and court doesn t do anything Missing an element Contract can be avoided by one of the parties because they have a legal disability Extent of the performance of the Contract Executed Contract o Executory Contract that has been fully performed o o o o o o o o o o o o o o o o o o o o Accord and Satisfaction Release Creditor Composition Charitable subscription Promissory Estoppel Voluntary Consent Contract that is not fully performed Existing contract between the parties and there is a dispute between them One party hasn t perform and they have an inability to perform and instead of doing what they promised to do Happens when there is a legal dispute between parties Bankrupt party gets to keep most of their assets and they get a discharged from their debts Creditors enter in the habit existing debt and an agreement that they will accept less than that obligation better than nothing 1 million people filed for bankruptcy last year Gift Exception to the gift rule When an individual agrees to make a promise to the charity if they promise then don t follow through the charity can sue them Equitable theory when the offorer makes an offer and the oferee changes their Each party agrees to do something and each party agrees to give up something one gives up money another gives up an asset Lack of voluntary compliance then there is no contract Mistake o o o Make an error only some mistakes meet the snip test of the volunteering not being complying Lateral Mistakes Bilateral Mistakes Both parties are at mistake it s irrelevant Mistaken as to the law Mistaken as to the value Mistaken as to the existence or identity of the subject matter Concept of fraud misrepresentation of a fact that is relied upon by a party One party is forced to enter into contract because of a threat of harm o o Duress o Legality Licensing laws o Regulatory Must be promised over a written document System that regulates the business behavior of that profession Disguise by government to make money Probate court make sure all the deceases debts taxes and funeral is paid then the court authorizes the transfer of tile to the beneficiary When a person is alive and they promise to pay for their debts cosigner Anti nuptial agreements pre nuprial Contract that cannot be fully performed within one year starts the day after the agreement Agreement to sell any interest in real estate Sale of any personal property over 500 except specialty manufactured goods Contract Law Allows transfer between people Allows agreements to be assigned to a 3rd party Exception Subleasing unique and special skill Predator Beneficiary Do me beneficiary Third party is promised a gift Incidental beneficiary Accident o Performance o Traditions presumed Some contracts have a liquidated damage clause Contract is in writing and it is anticipation that there might be a breach Formula that discusses how it should be approached damage clause Punitive damages most states do not grant you damaged When there is a breach of contract by one party the other party must be reasonable or if they cause damaged further because of acting unreasonably they have not litigated their loss Torts Intentional torts Requirement of intent Assault Battery Mental distress Invasion of Privacy Wrong doer causes victim to have fear that they are going to be harmed Intentional in unpermitted touching Medical procedures if done without permission Anything that causes psychological trauma
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