BUL Test 4 p 70 Contracts a legally enforceable agreement doesn t have to be written sound business practice would advise to put it into writing between two people and requires that both uphold their end of the bargain or you can sue the other party Ks is an abbreviation standing for contract What makes it not legally enforceable if the contract is in regards to something illegal like hiring a hit man Pre Nuptial Post Nuptial Contracts relating to marital relationships can do before or after marriage when married you have inheritance rights but you can make changes to these rights both parties must sign in front of 2 witnesses Essentials of a contract 1 agreement manifestation of mutual assent agree on the same thing and on the same terms words tell there is an agreement it can be verbal or written a the objective theory of contracts Meeting of the minds i ex horse sale Selling writes a letter to a potential buyer saying he will sell his horse for 2200 The buyer writes back say yes I will buy your horse for 2200 This action shows they have entered into a contract Upon review the seller notices he made a mistake when writing the letter and was actually hoping to get 2500 for his horse Because of Objective Theory the court ruled in favor of the buyer It was a written contract 2 obligation legal duty p 71 6 Types of contracts 1 express agreement manifested in words oral or written 2 ex buying a car signing contract implied agreement manifested by conduct ex dentist appointment fills a cavity now that patient has an obligation to pay 3 unilateral promise for an act ex 4 bilateral promise for a promise ex selling a car 5 executory not yet performed ex signed contract for the future 6 executed completely performed ex 3 months paid contract when it is up no legal obligation p 72 Elements of a valid contract A Mutual assent offer and acceptance Horse example B Consideration bargain for exchange Ill give you this if you give me that C Capacity all have to do with mental capacity old enough 18 years old sane sober D Legality legal purpose of the contract p 73 1st part of a contract Offer Essential elements A def a promise to render a stated performance in return for the requested counter performance I ll do this for you if you do this for me 1 promissory language required I promise I will I hereby undertake the obligation 2 effect of equivocal language sitting on the fence I am thinking about considering or contemplating a a B essential terms must be certain names or parties subject matter price quantity 1 avoid ambiguous language unclear can have more than one meaning a ex some or part C promise must be communicated tell them youre making an offer under circumstances which manifest present serious contractual intent p 74 Example of a contract Bar in Tallahassee back in the day said We ll pay 5 per year for the period between this year 1980 and the year of the event depicted on a t shirt T shirt one 1980 1969 Woodstock 11 years X 5 55 T shirt two 1980 1215 magna carta 765 years X 5 3825 Well the kid who wore the magna carta shirt said the bar needed to pay up because that is what they promised in the their advertisement This case went to court and the bar claimed they were just kidding There statement was communicated and serious which made it a contract The student won 5k which covered court fees and the amount he was owed by the bar p 75 Termination of an offer a Expiration of time specified if you don t include a date of expiration that s different if no time pecified offer terminates after a reasonable time based on totality of cirsumstances ex land or stock b rejection express refusal counter offer conditional acceptance rejection is effective when received by offeror making the offer offeree to who offer is bing made express refusal no or counter offer for a lower offeree doing c revocation offeror doing 1 offer is revocable at any time before acceptance 2 revocation is effective when received by offeree p 76 Option Contracts K gives buyer a choice Sell wants to sell Greenacre for 25K to the buyer and the offer ends on 6 1 13 Buyer has the choice to accept or decline If he accepts then 1K will be used as a down payment p 77 Termination of offer continued Additional ways to terminate d Death insanity of offeror or offeree e supervening illegality a law is enacted making the offer illegal ex you sell computers and our tying to sell to Iran You find out that the president say no business with them other than food and medicine Your practice would be illegal f destruction of subject matter ex selling someone a boat but a hurricane destroys the boat The offer is terminated Do you have to notify of termination No but its common curtacy p 78 Acceptance Mutual accent agreement a who may accept an offer party to whom offer is made offeree b conformity acceptance must conform to offer Mirror Image rule power of the offeror c conduct as acceptance ex going to the convinent store 1 cashing deopositiing a check 2 acceptance of document implies acceptance of terms on the document d silence does not generally constitute acceptance plumber does services for a customer and the bill comes in at 500 The customer sends a check to the plumber for 150 in compromise of debt Who s obligation is it to find out how much is being charged p 79 Reality of Consent A Central Issue was acceptance of K offer real and voluntary Was there real consent B Consent may be vitiated rendered null and void by if any one of these happens there was not mutual consent 1 misrepresentation misstatement or omission of material important fact justifiably relied upon causing injury 2 fraud intentional misrepresentation ex 5K for a car with 60K miles Goes to find out the car s odometer has been set back You can definitely get out of this contract 3 Duress wrongful threat or act which forces a person into a contract ex when cops beat someone into signing a confession ex husband and wife sign divorce papers because if she doesn t he threatened to take custody of the children 4 undue influence unfair advantage taken by superior party in a fiduciary relationship involves trust and confidence and superior and inferior relationship trusts S will do whats in best interest of the I 5 Mistake both parties think there is a wrongful act a mutual mistake of fact remedy available b Unilateral one party made a mistake generally no remedy Exception mistake is so large that other party knew should haave know of mistake ex seller of Greenacre offers
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