Business Law Quiz 3

5 Ways Contracts End

Expires by its terms, material breah by a party, complete perfromance by both parties, mutually agree to exit, by operation of law (death, legality)

Subjective vs Objective Contract Rule

if it contains something subjective, then all that matters is whether the client is satisfied or not. If objective than there needs to be something mearsurable or quantifiable

Material Breach

Significant, enough to matter (vaccine and chopsticks example)

Force Majeure

a party can be excused from performing under a contract if their performance is prevented by an act of God

For Compensatory damages to be recoverable, they must be:

Forseeable, reasonable calcuable and unavoidable

Most common remedy people seek in a breach of contract

compensatory damages

Loss of Value is calculated how?

Value of promised performance - value of actual performance

Relience Damages

when its impossible to speculate how much compensatory damges are worth

Ways we determine an agent should be considered an employee or independent contractor

how much control the principal excercises over agents work

whether the agent and principal are in different types of buinesses

whether the principal supervises the agent’s work

Whether the agent has a skill that the principal does not have

Who supplies the tools to work

The anticipated length of the relationship

Whether the agent is paid by the job or hour

What type of relationship does the parties think they are creating

Whether the principal is “in business” or not

Power of an attorney

a document by wihch a person authroizes someone else (The agent) to act on behalf, usually on matters relating to health or finances.

Duties the agents owe to their principles

obedience,

good conduct

keep principal informed of all relevant info

account for the principals money or property

fiduciary duty - agent must always act in the principals best interest

Avoid conflicts of interest and self-dealing

Avoid competing with the principal

Avoid misapprpriating the principal’s lmoney or property misuse, loging , taking anything bad

Keep pincipal’s confidential information confidentital

Duties principals owe their agents

compensation

deal with agents fair and honestly

reinbursement - for any moeny that the agent spends on the principal’s behalf

indemnification - if the agent suffers any injury or loss while working for principal

Ways agencies can end

Principal fires agent

agent acts

operation of law

by agreement of parties

the purpose of agency ends

3 ways contracts can impact 3rd parties

One party assings their rights under contract to a thrid party

One party delegated their duties under a contract to a thrid party

the contract itself is entered into the benefit of the thrid party

Certian contract rights are not assignable

where terms of the contract prohibit any assignment

where the contract involves highly personal contract rights

where the assignment would materically increase the risk or burden on other party

Intoxicated People

Contracts entered into by intoxicated people are voidable at their option if the other party knew or had reason to know of the intoxication

Incompetent People

Contracts entered into by incompetent people are voidable at their option as long as the contract is voided properly

What is different about Partial Assignments, what do you not need to do?

One does not need to assign all fo your rights, can settle in different ways

In material breach, what do we look at to determine if it is truly material?

look a the NUMBER and KIND at issue in breach