sports law exam - contracts

4 essential parts of a contract

4 essential parts of a contract

Mutual assent, consideration, legality, Capacity

Two essential parts of mutual assent

Offer and acceptance

(offer) Steps to make an offer

1. communicate to offeree

2. manifestation of intent

3. define terms of contract (fill in gaps)

(offer) Duration of offer

• Acceptance

• lapse of time

• revocation

• rejection

• counter offer

• Death/ incapacity of offeror or offeree

• Destruction of subject matter - as long as offeror isn’t one who destroys it

• Subsequent illegality of contract type/ subject matter is illegal at the time of contract

(acceptance) How to accept

• Communication to offeror

• silence as acceptance

• Effectiveness of acceptance

• Variant acceptance

  • The offeror is the boss of the offer, they get to decide how the offer gets accepted

(acceptance) Duration of power of acceptance

• Rejection/ counter offer

• lapse of time

• revocation by offeror

• Death/ incompetency of offeror or offeree

who has the power to accept the offer?

The offeree

Conducting invalidating mutual assent

• Duress

• Undue influence - when someone is reliant to you that you do what is in best interest

• Fraud

• Non-fraudulent misrepresentation

• Mistake

What is consideration

Bargain for exchange for something of legal sufficiency

Two parts of Consideration

1. legal sufficiency

2. Bargained for exchange

consideration exceptions

• promises to perform prior unenforceable obligation

• promissory estoppel - detrimental reliance

• promises made enforceable by statute

3 parts of legality

• violation of statutes

• violation of public policy

• exceptions

(legality) Violation of Statutes

• licensing

• Gambling

• Usury - percentage rates on loans

• Sunday - some places make it illegal to make deals on Sundays

(legality) Violation of public policy

• Exculpatory clauses

• Unconscionable Contracts

• Tortious Contracts

3 parts of capacity

• Minors

• incompetent

• intoxicated

(capacity) Minors

• Disaffirmation/ Ratification

• Liability for necessities

• Misrepresentation and torts with contracts

(Capacity) Incompetent

• Under Guardianship (most important/ effective)

• Mental illness or defect

(Capacity) Intoxicated

• Voluntary/ Involuntary

  • only if you can demonstrate that you could not understand the nature of what you were getting yourself into

Two parts of Breach of Contract

• Total

• Partial

(BOC) Total

Aggrieved party discharged of duty to perform under the contract, may sue immediately

(BOC) Partial

Aggrieved party not discharged of duty to perform under the contract, may sue immediately

Defenses to Breach

• Attack the elements of contract formation

• Impossibility

• Frustration of purpose

• Impracticability

(DTB) Attack the elements of contract formation

Attack parts of formation where it may not have happened

1. Mutual assent

2. Consideration

3. Legality

4. Capacity

(DTB) Impossibility

Impossible to perform through no fault of the breaching party

(DTB) Frustration of Purpose

Unexpected events arise which make fulfillment of the contracts purpose impossible to be performed

Ex. - You rent a table/ space for a one day parade/ event and then they cancel the event. Your contract can’t be considered breached because your purpose for getting into the contract could not be performed

(DTB) Impracticability

Cost increased due to unforeseen circumstances, war embargo, or crop failure

Ex. - Pandemic

Money Remedies for Breach

• Expectation interest/ Compensatory

• Reliance interest

• Restitution

• Nominal

• Liquidated

Why do courts try to save contracts?

To honor the want for boundness between the two parties

What can the offeree do if the offeror is the one who destroys the subject matter of the contract?

the offeree can sue for damages

(MRFB) Expectation interest/ compensatory

The best money remedy you can receive,

Loss value

+ incidental damages

+consequential damages

- loss or cost avoided by injured party

(MRFB) Reliance interest

Puts party in position as if contract had not been made

(MRFB) Restitution

Restore benefit conferred upon other party

(MRFB) Nominal

Yes, you won your case but there isn’t a lot of damages

(MRFB) Liquidated

A dollar amount that are written into in anticipation of a breach

Ex. - a coach leaving a school/ team

Equitable Remedies for Breach

• Reformation

• Specific performance

• injunctions

(ERFB) Reformation

Court rewrites the contract

(ERFB) Specific Performance

Compels defaulting party to perform (though not granted for contracts for personal services)

(ERFB) Injunctions

Enjoins a person to refrain from doing a specific act

At-Will-Employment

An employee can be fired for any reason, no reason, as long as it is not discriminatory

What people have property interest?

People who have contracts like professors

Ex. - Professor Tryce

Termination

• For “Cause”

• Rules violations and non-sports related conduct

(T) For “Cause”

• Refuses/ unable to perform duties

• Convicted of a serious crime

• Engages in fraud or dishonesty when carrying out duties

• Participate/ encouraging sports gambling

• Serious NCAA rules violations - Academic fraud or encouraging the use of PED

Does a coach/ employee get the remainder of their salary if fired for “cause”?

No, they do not receive what is left on their contract

(T) Rules violations and non-sports related conduct

NCAA Rules violations

• less serious violations like driving a player around as a coach

Does a coach/ employee receive what is left on their salary or some sort of compensation if fired for rules violations/ non-sports related conduct?

Yes, they are due some sort of compensation if they are

Compensation (Upon unjustified termination)

• Base Salary, Health insurance, Pension

• Perks or fringe benefits

(C) Perks or fringe benefits

• Season tickets

• Auto or Auto expenses

• Parking privileges

• Meals

• Country club fees

• Radio/ TV money

• Summer camp money

• Secretary/ Administrative assistant

• Cost to attend football conventions