Legal Bus Law Exam 2

Duress

Alice is Betty's boss. Alice really wants Betty's antique car. Betty refuses to sell it to her. Alice gets mad, and she tells Betty to sign a written contract selling her car to Alice or Alice will fire her. Betty doesn't want to, but she signs the contract because she doesn't want to get fired. Betty later goes to an attorney to see what her options are, because Betty doesn't want to have to sell her car. What legal defense could Betty use to get out of the contract?

An Injunction

Carrie and David entered into a contract where Carrie would be a line chef for David's restaurant. In the contract, Carrie agreed to keep all of David's recipes a secret. A few months after working there, Carrie started posting David's recipes on various social media platforms. David gets mad. He fires Carrie and then sues her. He takes her to court and asks the judge to order Carrie to quit posting his recipes online and to remove all of her previous posts. The judge does as David wishes. What has the judge just ordered?

The Statute of Frauds: 

Does NOT require a specific format for the written contract to be legal.

Compensatory Damages

Evan and Frank enter into a contract. In the contract, Evan agrees to paint Frank's house for $2,000.00. 

Evan paints Frank's house, but Frank refuses to pay Evan.  Evan sues Frank and asks for the judge to order Frank to pay Evan $2,000.00

Which is true?

Causation is the link between the defendant’s breach of duty and the plaintiff’s injuries

What's the name of the test courts use to determine causation?

But for Test

Assumption of Risk is a defense to:

Negligence

Strict liability would be applied to:

Running a stop sign.

A contract that does not have all four elements/requirements will be known as:

Void

Alice tells Betty that she will sell Betty her car for $10,000.00. Betty agrees.

Which is correct?

Alice is the offeror; Betty is the offeree.

Relating back to the question above, which is correct?

Alice's consideration is the car, while Betty's consideration is the money.

Which are legal ways to accept an offer?

Orally, in Writing, or by Conduct

What are the elements of proving an intentional tort?

Intent, Bad Act, Causation, Injury

A tort is a/an ________________________________.

Civil Wrong

Which is true?

An assault can involve either (1) offensive physical contact OR (2) the threat of offensive physical contact.

To prove intentional infliction of emotional distress:

One must prove extreme behavior.

Contract

An enforceable agreement between two or more parties; a promise or a set of promises enforceable by law that a court of law will recognize and enforce.

Enforceable

A contract status where if one party fails to perform, the other party can sue and get a judge to fulfill it and/or pay money for a breach

Breach

When someone makes a promise and breaks or breaches that promise.

Oral Contract

An agreement made out loud that is binding as long as it meets certain legal requirements.

Written Contract

An agreement reduced to writing.

Digital Contracts:

Agreements expressed via electronic data interchange, signed, concluded, and transferred via electronic or code-based systems, made equivalent to paper contracts.

Uniform Electronic Transactions Act (UETA)

A law adopted by states beginning in 1999 that grants electronic signatures the same legal weight as handwritten signatures.

E-Sign Act:

Federal legislation ensuring that completely digital contracts are the equivalent of traditional paper contracts.

Valid Contract:

A contract that has all required elements and will be enforced by courts.

Void Contract

A contract that lacks one or more required elements, making it an agreement that has no legal effect.

Unenforceable Contract

A contract that met the required elements to be valid, but still cannot be enforced because one party asserts a valid legal defense.

Statute of Frauds:

A statute requiring certain types of contracts to be in writing and signed to prevent fraud.

Fraud:

Deception intended to result in financial gain.

Prenuptial Agreement:

An agreement made by a couple before marriage concerning the ownership of their respective assets should the marriage fail.

Mutual Assent

The knowing, voluntary, and mutual approval of the terms of a contract by each party, typically reached via offer and acceptance.

Offer

A promise to do a specified activity, such as selling a good at a certain price or providing services for a given rate.

Offeror

The person making the offer.

Offeree

The person to whom the offer is being made.

Acceptance

The offeree's expression of agreement to the terms of the offer, which can be done orally, in writing, or by conduct.

Counteroffer

When the offeree rejects the original offer and proposes a new offer with different terms.

Mirror Image Rule

The rule requiring that any acceptance by the offeree must be the exact mirror image of the original offer; any deviation is a counteroffer.

Consideration

The mutual exchange of legal benefits and detriments where each party gives up and receives something of value in a bargained-for exchange.

Capacity

The legal ability of a party to enter into a contract (e.g., being at least 18 and mentally competent).

Minors (Infants)

Individuals younger than 18 who have limited capacity to contract.

Mental Incompetents

Individuals with limited capacity due to mental disorders, dementia, or temporary incompetence like severe depression, trauma, or high intoxication

Legality

The requirement that the subject matter of a contract must be legal to be enforceable.

Mistake

A belief that is not in accord with the facts, which can serve as a defense against enforcement.

Duress

When one party uses unfair coercion (physical force, economic threats, or extortion) to force another party to enter or modify a contract.

Unconscionability

A defense giving courts the power to refuse to enforce a contract where the consideration is grossly unequal and shocks the objective conscience.

Discharge

The release of a legal obligation under a contract.

Rescission

Mutual consent by both parties to cancel a contract where neither has fully performed, placing them back in their original positions.

Operation of Law:

Circumstances where fairness demands that the law excuses parties from contract performance due to unexpected events.

Supervening Illegality

When the performance of a contract becomes illegal subsequent to contract formation but prior to performance.

Remedies

Relief provided by the law for nonbreaching parties that suffer losses because of a contract breach.

Compensatory Damages

Money damages covering a broad spectrum of actual economic losses suffered by the nonbreaching party.

Liquidated Damages

A fixed damage amount agreed to by the parties ahead of time in the contract because actual damages are difficult to determine.

Specific Performance

An equitable remedy where a court orders the breaching party to perform the exact promised action, available only for unique subject matter.

Injunctive Relief (Injunction)

A court order requiring a party to refrain from performing a particular act.

Tort

A civil wrong where one party acts or fails to act, causing a loss or injury to another party.

Tortfeasor

The person who commits a tort (the "doer" of the bad act).

Tortious Conduct:

The wrongful, bad conduct committed by the tortfeasor.

Intentional Tort

A tort where the tortfeasor acts with willful intent to bring about an event causing harm.

Defamation

Making false and defamatory statements that negatively affect another party's reputation (Libel is written; Slander is spoken).

Fraudulent Misrepresentation (Fraud)

A tort allowing an innocent party to recover monetary damages caused by a false representation of a material fact known to be false and relied upon.

Material Fact:

A significant fact that would impact parties' rights or obligations in a transaction, as opposed to a minor detail.

False Imprisonment:

The intentional infliction of confinement upon another party against their will.

Assault:

The intentional touching of another person without consent in a harmful/offensive manner, or putting someone in fear/apprehension of immediate harmful/offensive contact.

Intentional Infliction of Emotional Distress (IIED):

Extreme, outrageous, or reckless conduct intended to inflict severe emotional or mental distress.

Trespass

The act of entering another's land or causing another person/object to enter land without the owner's consent.

Negligence (Unintentional Tort)

An accidental event where a party fails to act reasonably, creating an unreasonable risk of harm that causes injury to another.

Duty of Care

The general legal obligation of every party to act as a reasonably prudent person would under the circumstances.

Licensee

A person with the landowner's consent to be on property for a nonbusiness purpose (e.g., social guest); owed a duty to warn of known dangers.

Invitee

A person invited onto property for business purposes or public access; owed a duty to warn of known dangers and inspect/fix hidden defects

Breach of Duty:

When a tortfeasor fails to exercise reasonable care to uphold their duty.

Causation ("But-For" Test):

The legal requirement linking a breach of duty to damages, tested by asking if the injury would have occurred "but for" the breach.

Actual Damages

Identifiable physical harm or economic losses suffered by the plaintiff as a result of a breach.

Comparative Negligence

A defense where a jury divides fault by percentage between a negligent plaintiff and defendant, reducing (but not eliminating) the damage award.

Assumption of the Risk

A complete defense used when a plaintiff voluntarily participates in an activity knowing that a substantial and apparent risk is inherent in it.

Strict Liability

Liability imposed by law without needing to prove intent or negligence, applied primarily to abnormally dangerous activities and defective products.

Products Liability

The liability of any commercial seller of a product that, because of a defect, causes harm to a consumer.

Substantial Change

A products liability defense where the product was altered significantly between the time it left the seller and reached the end user.

Product Misuse Defense

A defense used when an injured party uses a product in a way so far removed from its ordinary, foreseeable use that it causes danger.