LEGL 2700 1nd Edition Exam 2 Study Guide Contracts Lecture 8 What are contracts Legally enforceable promise or exchange of promises Key Element of enforceability o Promise not enforceable o contract enforceable Written or spoken agreement that is enforceable What is the Sanctity of Contract Critical element in business transactions where you have to honor the contract because it has certain value Ability for a party that has a contract to go to court if the other party isn t honoring What is the scope of contracts very wide but has to be definite we are allowed to contract for basic anything that isn t unlawful of that doesn t violate public policy Types of Contracts o Express contract contract where the parties explicitly state the terms vast majorities are in writing and done by businesses don t have to be in writing o Implied by Fact contract when a contract is formed by mere actions o Implied by Law contract mistake or error with unjust enrichment where the law has a solution How to form a contract 1 Offer a promise plus a demand a Specific and definite promise and demand b Dollar amount needed d can be terminated i By provision If it expires the terms ii By time expired by a reasonable lapse of time ex concert is over iii By rejection rejecting the offer or counter offering iv By revocation take it back revoke cruelly before acceptance v By destruction content matter is destroyed contract is void vi By illegal activity if unlawful 2 Acceptance have to accept the same terms as when the offer is made a Silence is not acceptance b Actions Implied by Fact like reaching in pocket and handing money is acceptance c Mirror Image Rule in order for a acceptance to be valid it has accept the offer on the offer s terms to mirror the same offer that was originally made d Mailbox Rule timing of acceptance the moment it is dispatched whichever acceptance was first whether it was received first or not 3 Consideration the exchange of legal benefit for legal detriment exchange of value going in two directions differentiates a contract from a gif a Gif Intend and Deliver b Contract is formed when we have all 5 of these elements at the same time c Prior consideration does not count 4 Capacity parties have to be of legal age and have a sound mind 5 Lawful Purpose can t be illegal or against public policy What are the limits of enforceability Unconscionable Contracts so wrong or so unfair that it shocks the conscience Contract of Adhesion contract that one party doesn t get an opportunity to review before they signed Fraud intentional misstatement of material fact that induces reliance s and causes injury o Failure to disclose a material fact by omission o Must be Intentional Misrepresentation misstatement without intent Covenant non compete meaning you can t not leave our contract to go with someone else Duress threatening someone to sign a contract Influence someone misuses trust against you to force you to enter a contract What is the Statute of Frauds require certain contracts to be in writing in order to prevent fraud If it is any of the things listed below then it must be in writing Real Estate Security agreement Sale of Goods over 500 dollars Even if it is unlikely that a contract can be performed within a year unless there is a milestone then it needs to be in writing What are the damages awarded through a breach of contract Specific Performance court ordered remedy when subject matter of the contact is unique Remedies how courts fix damages like monetary remedies Compensatory Damages monetary remedy put the party in the place that the party would be if no breach had incurred Tort Law Lecture 9 What is Tort Law civil wrong or hurting someone other than a breach of contract Wrong against a person or a wrong against a person s property Negligence for doing something What are the types of Torts Intentional torts come from deliberate actions About desire to bring about certain results Can exist where results are substantially likely from a certain action Examples o Assault putting someone in apprehension for their physical safety basically threatening don t have to touch that person o Battery actually involves touching illegal touching of another in this situation illegal means without justification or consent Must be done in a harmful way injury is not needed o Intentional Infliction of Emotional Distress outrageous intentional conduct that causes a strong possibility of mental distress Plaintiff has to prove emotional distress and physical symptoms of the distress bar is high o Defamation actual malice is required o Fraud intentional misgiving of fact o Injurious Falsehood publication of untrue statements about a good or service plaintiff would have to show a falsity and actual damages o Intentional interference with Contractual Relations when you have a contract and an outside party induces one of those parties to breach then the nonbreaking party might have a claim against that outside party Negligence tort Caused by neglect instead of deliberate action Key to negligence torts is the failure to use reasonable care Involve unreasonable behavior that causes an injury When someone had a duty to act reasonably but instead acts carelessly o Duty of Care duty to act reasonable vague factually and situational dependent o Inaction is when no action is taken place for a duty to help others avoid injury o Unreasonable Behavior likelihood that a behavior will lead to an injury o Willful and Wanton Negligence acting in total disregard at the interest of others ex drunk driving What are the 5 elements of Torts 1 Duty of Care owing another person reasonable care to avoid injuring others arises out of conduct 2 Unreasonable Behavior or Breach of Duty judges decide whether the behavior could have led to the injury a Willful and Wanton Negligence extreme lack of care allows an injured plaintiff to recover punitive and actual damages 3 Causation in Fact the failure must have caused some kind of injury and the plaintiff must have been to one to cause the injury if both are at fault then it is jointly and severally liable 4 Proximate Causation legal cause the proposition that those engaged are legally liable only for the foreseeable risk that they cause 5 Actual Injury some physical or emotional injury must be present What are the Damages of Torts Compensatory makes plaintiffs whole financially tries to compensate for the injury of the victim Hard to put a price tag on some injuries and compensation