Criminal Law and Contracts Comprehensive Review

Vocabulary practice flashcards covering criminal law and contract law, including crimes, constitutional protections, contract formation, capacity, legality, third-party rights, breach, and remedies.

Classification of crimes

Felonies (most serious); misdemeanors (typically less than a year in jail); violations/petty offenses (usually a fine)

General intent vs. specific intent crimes

Thinking about a crime is not a crime; a crime needs a criminal act (actus reus) plus criminal intent (mens rea). Intent is either specific-intent or general-intent.

Nonintent / strict liability crimes

Criminal liability imposed without finding intent; imposed for reckless or grossly negligent conduct that causes injury to another (e.g., involuntary manslaughter)

Arrest

Police need an arrest warrant based on probable cause; warrantless arrests allowed when police arrive during the crime, a person is fleeing the scene, or evidence is likely to be destroyed

First-degree murder

Intentional unlawful killing with premeditation, malice aforethought, and a willful act; can be punished by execution (capital murder)

Second-degree murder

Intentional unlawful killing that is not premeditated or planned in advance (some deliberation, but no long-term planning)

Voluntary manslaughter (third-degree murder)

Intentional unlawful killing, not premeditated, committed under circumstances that would cause a person to become emotionally upset

Felony murder rule

Murder committed during the commission of any felony may be prosecuted as murder, even if the perpetrator did not originally intend to kill

Robbery

Taking personal property from another person by use of fear or force; if a weapon is used it is aggravated robbery

Burglary

Taking personal property from another's home, office, or commercial or other type of building

Larceny

Wrongful and fraudulent taking of another person's personal property; includes tangible property, trade secrets, computer programs, other business property; force or entry into a structure not required; states distinguish grand vs. petit larceny by value

Embezzlement

Fraudulent conversion of property by a person to whom that property was entrusted

Extortion

Threat to expose something about another person unless that person gives money or property; blackmail is extortion of private persons

Elements of criminal fraud

(1) Misrepresentation of a material fact (2) person knows the fact is false (3) made with intent to defraud (4) victim justifiably relies on it (5) victim suffers actual loss from the reliance

RICO

Racketeer Influenced and Corrupt Organizations Act; includes Criminal RICO (federal crime to acquire or maintain an interest in, use income from, or participate in the affairs of an enterprise through a pattern of racketeering activity) and Civil RICO (private civil action to recover for injury to business or property)

Criminal conspiracy

Two or more persons enter into an agreement to commit a crime; liability requires an overt act in furtherance of the crime; the crime itself does not have to be committed

CFAA

Counterfeit Access Device and Computer Fraud and Abuse Act: federal crime to knowingly use a computer to obtain restricted federal government info, financial records of financial institutions, or consumer reports from consumer reporting agencies

Fourth Amendment

Protects persons and corporations from overzealous investigative activities by the government; unreasonable search and seizure is prohibited; search warrants based on probable cause required in most cases; government may not search businesses without a warrant

Exclusionary rule

Evidence obtained from an unreasonable search and seizure is prohibited from being introduced at trial against the person searched

Fifth Amendment: self-incrimination

No person shall be compelled in any criminal case to be a witness against himself or herself; protects only natural persons accused of crimes

Miranda rights

Rights a suspect must be informed of before being interrogated; ensures the suspect does not unwittingly give up Fifth Amendment rights

Fifth Amendment: double jeopardy

Persons cannot be tried twice for the same crime in the same jurisdiction

Sixth Amendment

Guarantees a criminal defendant a trial by an impartial jury of the state/district where the crime was committed; right to confront witnesses, assistance of a lawyer, and a speedy trial

Eighth Amendment

Protects criminal defendants from torture or other abusive punishment (cruel and unusual); does not prohibit capital punishment (lethal injection)

Contract

A promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty; the terms become "private law" between the parties

Elements of a valid contract

(1) Agreement (2) Consideration (3) Lawful object (4) Contractual capacity

Uniform Commercial Code (UCC)

Comprehensive statutory scheme with laws covering aspects of commercial transactions

Bilateral contract

Offeror's promise is answered with the offeree's promise of acceptance ("promise for a promise"); no act of performance necessary

Unilateral contract

Offer can be accepted only by performance of an act by the offeree; no contract until the offeree performs the requested act

Implied-in-law contract (quasi contract)

Equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed

Valid offer requirements

(1) Offeror objectively intends to be bound (2) terms are definite or reasonably certain (3) offer is communicated to the offeree

Option contract

Offeree pays the offeror compensation to keep the offer open for an agreed period of time; prevents the offeror from revoking during the option period (exception to the rule that an offer can be revoked before acceptance)

Mirror image rule

Offeree must accept the terms exactly as stated in the offer; any attempt to accept on different terms is a counteroffer rejecting the offer

Mailbox rule

An acceptance is effective when dispatched/sent, even if lost in transmission; overnight delivery and fax are also governed by this rule

Valid consideration

Legal value plus a bargained-for exchange

Illusory promise

Both parties enter a contract, but one or both can choose not to perform their contractual obligations

Preexisting duty

A promise to do something the party is already obligated to do; arises when a party to an existing contract tries to change the terms during performance

Past consideration

A prior act or performance that does not support a new contract; a promise to pay additional compensation for past work is not enforceable

Accord and satisfaction

Accord = agreement to accept something different in satisfaction of the original contract; satisfaction = performance of the accord. If the accord is not satisfied, the other party can enforce either the accord or the original contract

Promissory estoppel

Equitable doctrine preventing a promisor from withdrawing a promise when the promisee has adjusted their position in justifiable reliance on it; also called detrimental reliance

Infancy doctrine

Minors may disaffirm (cancel) most contracts they have entered into with adults; the contract is voidable by the minor and the adult party is bound by the minor's decision

Duty of restoration

A minor is obligated only to return the goods or property they received from the adult, in whatever condition they are in at the time of disaffirmance

Duty of restitution

If a minor transferred money or property before disaffirming, the adult must return the value to the minor (status quo); if consideration was sold or depreciated, the adult must pay the cash equivalent; results may differ if the minor misrepresents their age

Adjudged insane

Declared legally insane by a proper court or administrative agency; a contract entered by such a person is void

Insane but not adjudged insane

Insane but not declared so by a court or agency; the contract is generally voidable; the person is liable in quasi contract for the reasonable value of necessaries received

Usury laws

Laws that set an upper limit on the interest rate that can be charged on certain loans; protect unsophisticated borrowers from loan sharks

Exculpatory agreement

Contract provision relieving a party from tort liability for ordinary negligence (release of liability); cannot cover willful conduct, intentional torts, fraud, recklessness, or gross negligence

Covenant not to compete (noncompete)

Agreement that an employee or seller of a business will not engage in a similar occupation or business within a specified geographic area for a specified period following sale or termination of employment

Noncompete lawfulness test

Lawful if reasonable in 3 aspects: line of business protected, geographic area/market protected, and duration of the restriction

Unconscionable contract

Contract (or clause) so oppressive or manifestly unfair that courts refuse to enforce it in part or at all; may not be used merely to save a party from a bad bargain

Unilateral mistake

One party is mistaken about a material fact regarding the subject matter; contract generally is not voidable unless the other party knew of the mistake, it was a clerical or mathematical error not due to gross negligence, or enforcing it would be unconscionable

Mutual mistake of material fact

Both parties are mistaken about a material fact important to the subject matter; contract can be rescinded; also covers ambiguity (a word with more than one logical interpretation) and no "meeting of the minds"

Mutual mistake of value

Both parties know the object of the contract but are mistaken as to its value; the contract remains enforceable

Elements of fraud

(1) False representation of a material fact (not an opinion or prediction) (2) intent to deceive (3) innocent party justifiably relied (4) innocent party was economically injured

Fraud in the inception

Party is deceived about the nature of their act and does not know what they are signing; the contract is void

Fraud in the inducement

Party knows what they are signing but was fraudulently induced to enter the contract; the contract is voidable by the innocent party

Undue influence

Equitable doctrine; occurs when one person takes advantage of another's mental, emotional, or physical weakness (a vulnerable person), usually in a fiduciary or confidential relationship

Statute of Frauds mnemonic (MYLEGS)

M = promises made in consideration of marriage (e.g., prenuptial agreements); Y = contracts that cannot be performed within one year; L = contracts involving interests in real property (land); E = contracts involving agents (equal dignity rule); G = sale of goods ($500+$) / lease of goods ($1,000+$); S = promise to guarantee another's debt (surety/guaranty)

One-year rule

Executory contract that cannot be performed by its own terms within one year must be in writing

UCC Statute of Frauds

Contracts for the sale of goods priced at $500$ or more must be in writing; leases of goods requiring payments of $1,000$ or more must be in writing

Part performance

Equitable exception: an oral contract for the sale of land that has been partially performed may be specifically enforced to avoid injustice; most courts require that the purchaser either pay part of the price and take possession, or make valuable improvements on the property

Parol evidence rule

If a written contract is a complete and final statement of the agreement, prior or contemporaneous oral or written statements that alter, contradict, or add to its terms are inadmissible in court

Merger (integration) clause

Clause stating the contract is the complete and exclusive expression of the parties' agreement; parol evidence may not be introduced to explain, alter, contradict, or add to its terms

Assignment

Transfer of rights under a contract to a third party

Contracts that cannot be assigned

Personal service contracts (a specialized service cannot be assigned to someone else); assignment of a future right (e.g., being named a beneficiary in a living person's will); contracts where assignment would materially alter the risk (e.g., car insurance); assignment of a legal action

Delegation

Transfer of contractual duties by the obligor to another party for performance

Donee beneficiary

Third party on whom a benefit or gift is intended to be conferred by the contract

Creditor beneficiary

Original creditor who becomes a beneficiary under the debtor's new contract with another party (e.g., debtor sells the item to a third party who promises to pay the remainder of the loan)

Incidental beneficiary

Party unintentionally benefited by other people's contracts; has no rights to enforce or sue on the contract

Condition precedent

Condition that requires the occurrence of an event before a party is obligated to perform a duty (e.g., getting a degree before starting a job)

Condition subsequent

Condition whose occurrence or nonoccurrence automatically excuses performance of an existing contractual duty; failure to meet it relieves the other party from the obligation

Novation

Agreement that substitutes a new party for one of the original contracting parties and relieves the exiting party of liability on the contract

Force majeure clause

Clause in a contract in which the parties specify certain events (e.g., floods, earthquakes) that will excuse nonperformance

Substantial performance

Performance that deviates only slightly from complete performance; a minor breach; nonbreaching party can sue for damages (deduct cost of repair from the unpaid price)

Inferior performance

Material breach: party fails to perform express or implied obligations and impairs or destroys the essence of the contract; nonbreaching party may rescind and seek restitution, or sue to enforce and seek damages

Anticipatory breach (repudiation)

A party indicates in advance (expressly or by conduct) that they will not be able to perform when due; the nonbreaching party's obligation is immediately discharged and they may sue right away without waiting until performance is due

Compensatory damages

Award of money to compensate the nonbreaching party for the loss of the bargain; e.g., seller breaches: market price minus contract price; places the nonbreaching party where they would have been had the contract been fully performed

Consequential damages

Foreseeable damages arising from circumstances outside the contract (also called special damages); the breaching party must know or have reason to know the breach will cause them; can be disclaimed in sales or license agreements

Liquidated damages

Parties agree in advance that certain damages will be available if the contract is breached; actual damages must be difficult to determine; the amount must be reasonable; if actual damages are easy to determine it is a penalty and unenforceable

Mitigation of damages

Nonbreaching party has a duty to avoid or reduce damages caused by the breach; e.g., a wrongfully terminated employee must try to find comparable substitute employment (compensation, rank, status, job description, location)

Specific performance

Equitable remedy ordering the breaching party to perform the acts promised in the contract; available if the subject matter is unique (land, art, antiques, rare coins, stamps, heirlooms); not granted for personal service contracts

Intentional interference with contractual relations

Tort that arises when a third party induces a contracting party to breach their contract

Covenant of good faith and fair dealing

Parties are held to the express terms of the contract and also must act in good faith and deal fairly in all aspects of it