Blaw unit 2

Elements of a contract

-Offer (begins a contract, proposing a deal)

-Acceptance (I agree)

-Consideration (Sum exchange of value)

-Legal purpose (must be of lawful purpose)

-Consent (Cant trick)

-Capacity (18 years old)

-Some have to be in writing

Bilateral Contract

A promise for a promise (I promise to pay you 1,000 if you promise to paint my house)

Unilateral Contract

Promise for an act (I promise to pay you 1,000 if you promise to return my bag)

Executory Contract

A contract is this if one or more parties have not yet fuflied its obligations

Executed Contract

When all parties have fulfilled their obligations

Express Contract

The two parties explicitly state all important terms of their agreement.

Implied Contract

The words and conduct of the parties indicate that they intend an agreement. ( Lance simply shows up without the producer asking, and the producer continues to pay for the work done. But on the twelfth weekend, when Lance rings the doorbell to collect, the producer suddenly says, “I never asked you to mow it. Scram.” weeks. But a court will probably rule that the conduct of the parties has implied a contract. Not only did Lance mow the lawn every weekend, but the producer even paid on three weekends when they had not spoken. It was reasonable for Lance to assume that he had a weekly deal to mow and be paid.

An advertisement is not an offer (T/F)

True

How are offers terminated?

-rejection (A counteroffer is a rejection of the Og offer)

-Expiration

-Operation of law (If an offeror dies or becomes men-

tally incapacitated, the offer terminates automatically and immediately.)

-Revocation

An offer has to be Definitive (T/F)

True, they can’t be vague even if an offeree agrees to the deal, a court does not have enough information to enforce it, and there is no contract.

What is meeting of the minds"?

When one party must make an offer and the other party must accept the offer.

Mirror image rule

The law requires that acceptance be on precisely the same terms as the offer.

Mailbox Rule

An acceptance is generally effective upon dispatch, meaning the moment it is out of the offeree’s control. (When Masako faxes her offer to sell land to Eric, and he mails his acceptance, the contract is binding the moment he puts the letter into the mail. *revocation is only effective upon recival*

Illusory Promise

Appears to be a binding contract promise but actually creates no legal obligation becasue the promisor retains complete discretion to perform or not. An illusory promise is not consideration so there is no contract

Pre exisiting duty

If someone provides a service that she is already obligated to do, that act does not count as consideration.

Past consideration

A completed act can not be the baisis for consideration. parents say they'll buy you a car if you get an A in blaw, you made an A in the first test cant be basis for consideration because its in the past

What is insurable interest?

Anyone taking put a policy on a life of anther must have this, family member, spouse, parent, Creditor-debetor status, business assaoication. If this is not here there is generally no contract

Liccensing requiment

When this requirement is designed to protect the public, any contract made by an unlicenced worker is unforeseeable.

Usury

These laws prohbit charging excess interset on loans

Non compete agreemnts

A contract on which one party agress no to compete with another in a state type of business. When a non compete agreement is ancillary to the sale of a business, it is enforceable if reasonable in time, geographic area, and scope of activity.

Exploratory clauses

A contract providsion that attempts to release one party from liability in the evnt the other is injured. ( ex. valet and ski resorts you cant sue these places because they are not liable)

Bailment

Giving posssesion and control of personal property to another

Capacity

The lagal ability of a prty to enter in a contract, you lack capicty of you are under the age of 18 or if you have a mental imparity.

Consent

Weather a party truly understans the terms they are making in the contract entered into the contract voluntary.

Restituion

Paying back the other party

A contract that is void is illegal from the beginning (T/F)

true

When can a minor disaffirm from a contract?

A minor can disaffirm a contract any time before he or she reaches the age of 18 (true)

Consnt