BMGT380 MIDTERM EXAM 2 REVIEW Racketeering Influenced in Corrupt Organization Act Can get triple damages and attorneys fees rewarded RICO Contract 1 Promise a Offer a present intent to contract i Offeror makes the offer ii Offeree ability to accept the contract b Acceptance i Silence will never serve as acceptance of a contract ii BUT not responding but taking possession bound by terms of contract 2 Consideration giving up a thing of value suffering a consequence detriment 3 Capacity the ability to exercise legal rights or incur legal obligations a Mental incapacity Of a sound mind of legal age know what you re doing sober etc i Mental disability actual or adjudicated ii Minority less than the legal age of 18 iii Sobriety less than legal drinking limit of 08 4 Legality does not contravene the law statute a Cannot be a contract of adhesion b Does not violate public policy c Usurious lending someone money at a rate that is greater than the law permits 1 Offer K a Present intent to contract b Definiteness c Communication of the offer o Exception authorized agent can make the communication o Actual authority apparent authority o Counteroffer new offer being made serves to terminate initial offer d Acceptance o Intent to accept offer Look at objective evidence that you have o Acceptance on terms set forth in the offer o Communication of the acceptance If not specified any reasonable method of communication is accepted e Types of Offers o Advertisements invitation for you to make an offer o Rewards a form of unilateral contract Accepted through performance Word offer to make reward difficult to collect o Auctions auctioneer can withdraw item before it is accepted at any time Raising your hand is your response offer Auction made without reserve cannot be withdrawn at any time f Termination of Offers o Rejection o Counteroffer must be communicated Mailbox Rule acceptance is effective upon posting of it except if specified otherwise in contract o Open for a period of time Lapse of time Reasonable time Specified time ex 10 days Time is of the essence Enforce time periods Definite time otherwise court can extend Insanity offer terminated by virtue of insanity o Death offer terminated by virtue of death o o Destruction of subject matter before exchange takes place o g Exceptions Intervening illegality breaking laws within contract Option agreement paying someone to leave offer open for an extended period of time Unilateral Promissory Estoppel 2 Consideration 3 Capacity a Something of legal value that is bargained for given for exchange for an act or a promise Agreement between both parties of the value b Failed Consideration Illusory Promises doesn t bind the promisee to do or refrain from anything Forbearance to Sue agreement from promisee not to sue is sufficient consideration Pre existing duties if public officer has duty to undertake something that does not constitute consideration to an additional promise Pre existing contractual duties must have additional consideration Rewards offered for arrests o Officer can t apply for it because he is under a duty a Adjudicated an individual is going to be of danger to themselves others b Objective c Guardianship Person Property d Minors under age of 18 and not emancipated 18 is the age of majority Minors have right to disaffirm contract reasonable time e Emancipation claiming independence from parents as a minor f Necessaries items a minor will require for day to day living a minor cannot disaffirm a contract for necessaries g Ability to Comprehend Many Mental State Test 4 Legality a Illegal 1 Violates a statute any law that is dually active i Crimes ii Acts to promote violation of statute iii Violation of licensing laws Legislative history intent Regulatory Revenue raising 2 Violates public policy i Covenants not to compete Years Miles radius Customers Co employees ii Covenants of confidentiality 3 Unconsiderable unfair goes beyond societal norms b Blue Line court modifies unreasonable contract c Exculpatory Clause Contract you release the other party from any injury that may occur to you d Vicarious Liability employer is responsible for negligence of employee Adhesion have no choice Is the activity one of choice ex negligent hiring Types of Contracts Bilateral Contracts contract between two people promisor promisee o Accept offer by promising Unilateral Contracts one side of a contract just an offer o Performance acceptance o Withdrawn prior to full performance o Cannot withdraw after substantial performance determined by jury factor o Common Law you can withdraw offer at any time o Modern Law you cannot withdraw after significant performance Valid Contracts has all four characteristics of a contact Unenforceable Contracts determined by o Statute of Limitations 3 years general 12 years under seal specialty o Statute of Fraud Enacted by Charles II in 1676 Requires certain orders to be in writing o Voidable Contract o Take it or leave it Adhesion Contracts parties have unequal bargaining power and no negotiating Void illegal contracts void ab initio Implied Covenant of Good Faith each party will act in good faith when dealing with the other determined by jury Breach failing to perform contract o Material one which effects performance of contract substantially o Non material doesn t matter Anticipatory Repudiation suing during the contract after one side has expressed intention to not perform Common Law decisions based on precedents case law objective theory is strictly Sources of Contracts enforced Statutes o Uniform Commercial Code UCC o Uniform Probate Code UPC o Uniform Electronic Transactions Act UETA o Uniform Computer Information Transactions Act UCITA Agreements Click on online clicking acceptance typically enforced by courts Shrink wrap deemed to have accepted the terms on outside of box typically enforced by courts Purpose of Contract Law 1 Establishes uniformity of rules which allows for planning 2 Provides remedies i Can sue for breach of contract ii Seeking compensatory damages iii Equitable relief Injunction 1 Specific performance 2 3 Restitution return of goods 4 Rescission Requires that acceptance of an offer must match the offer exactly Acceptance of offer must be absolute unconditional and identical to the offer Mirror Image Under UCC change can be made if 3 Change is not material 4 No timely objection 5 Specifically limits acceptance Applies to common law Non contract Issues Coupled with Contract Issues 1 Unjust enrichment
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