contract law final

Contract Law

area of law that guides parties in making and enforcing legally binding agreements

Contract

a legally binding agreement between two or more parties that creates mutual obligations enforceable by law; can be verbal or written

Obligation

the course of action someone is required to do to meet the terms of a contract

Offer

a proposal made by the offeror to another party stating the specific terms they want agreed to

Offeror

the person who makes the offer

Offeree

the person to whom the offer is made

Acceptance

the offeree agreeing to the original offer exactly as-is; any change makes it a counteroffer, not acceptance

Counteroffer

an offer made in response to an initial offer; rejects the original terms and proposes new ones

Genuine Assent

ensures consent is true and complete, not based on fraud, pressure, or deception

Consideration

both parties must exchange something of value (money, an item, an action, or refraining from an action)

Capacity

both parties must be adults of sound mind; minors, mentally disabled people, and intoxicated people lack capacity and can void the contract at any time

Legality

contract terms must be consistent with the law and formed for legal purposes only

Express Contract

terms explicitly stated, either written or oral

Implied Contract

terms inferred from conduct rather than stated outright

Bilateral Contract

both parties make promises to each other

Unilateral Contract

one party makes a promise in exchange for the other party performing an act

Void Contract

has no legal effect from the start (illegal purpose, no consideration, etc.)

Voidable Contract

can be cancelled by one party (e.g., signed under duress, fraud, or by a minor)

Breach of Contract

violation, without legal excuse, of a contractual obligation

Material Breach

a failure significant enough to excuse the other party from performing their obligations

Compensatory Damages

money awarded to put the non-breaching party back where they would have been

Consequential Damages

compensation for foreseeable losses that resulted from the breach

Punitive Damages

punishment damages beyond actual loss; rare in contract law

Liquidated Damages

a damages amount pre-specified in the contract itself

Duress

forced into a contract under threat; makes the contract voidable

Fraud / Misrepresentation

a false statement that induces someone to enter a contract

Statute of Frauds

certain contracts must be in writing to be enforceable: real estate, contracts over $500, contracts lasting over one year

Statute of Limitations

the deadline by which a lawsuit must be filed

Parol Evidence Rule

a final written contract cannot be contradicted by prior oral agreements

Verbal contract went wrong →

should have put it in writing; Statute of Frauds requires written contracts for real estate, goods over $500, and contracts lasting over one year

Minor signed the contract →

contract is voidable; the minor can cancel at any time

Signed under pressure or threats →

voidable due to duress; the affected party can seek rescission

One party didn't perform →

sue for breach of contract; seek compensatory damages or specific performance depending on what was lost

Want to pre-set penalties for breach →

include a liquidated damages clause in the contract specifying the amount owed if either party fails to perform

Contractor took money and disappeared →

should have used a written contract and not paid the full amount upfront; can sue for breach and fraud

Contract formed for an illegal purpose →

void; courts will not enforce it regardless of what both parties agreed to

Is this a valid contract? →

check all six elements: offer, acceptance, genuine assent, consideration, capacity, and legality; if any are missing it is not enforceable

What action can the non-breaching party take? →

sue for compensatory damages, seek specific performance, or pursue rescission depending on the situation

How could this contract have been voided? →

one party lacked capacity (minor, intoxicated, mentally disabled), the purpose was illegal, there was fraud or duress, or one party breached

Employment Law

governs the relationship between employers, employees, and unions; focuses on fair treatment in the workplace for all people

At-Will Employment

either party can end employment at any time for any lawful reason

Wrongful Termination

firing someone for an illegal reason such as discrimination or retaliation

Independent Contractor

not an employee; controls how their own work is done; not entitled to employee benefits or legal protections

Equal Employment Opportunity

the principle that all people should have equal access to employment and be treated fairly without discrimination

EEOC

Equal Employment Opportunity Commission; federal agency that enforces anti-discrimination laws by investigating charges and filing lawsuits

OFCCP

Office of Federal Contract Compliance Programs; ensures federal contractors comply with equal employment opportunity laws

Protected Class

a group protected from discrimination under federal law, including race, color, sex, religion, national origin, age (40+), disability, veteran status, genetic information, sexual orientation, gender identity, pregnancy, political opinion, and trade union activity

Disparate Treatment

intentional discrimination against someone because they belong to a protected class

Disparate Impact

a neutral policy that disproportionately harms a protected class even without discriminatory intent

Quid Pro Quo Harassment

an employment benefit conditioned on tolerating harassment ("this for that")

Hostile Work Environment

pervasive harassment that makes the workplace intolerable for a reasonable person

Sexual Harassment

unwelcome conduct of a sexual nature in the workplace

BFOQ

Bona Fide Occupational Qualification; a characteristic legally required for a specific job that would otherwise be considered discriminatory

Title VII (Civil Rights Act 1964)

prohibits employment discrimination based on race, color, religion, sex, and national origin

ADA

Americans with Disabilities Act; prohibits discrimination against disabled workers and requires employers to provide reasonable accommodation

ADEA

Age Discrimination in Employment Act; protects workers 40 and older from age-based discrimination

FMLA

Family and Medical Leave Act; entitles eligible employees to up to 12 weeks of unpaid leave for family or medical reasons

FLSA

Fair Labor Standards Act; sets minimum wage, overtime pay rules, and child labor standards; impacts 130+ million workers

Equal Pay Act (1963)

requires equal pay for equal work regardless of sex; as of 2021 women still earn approximately 82 cents for every dollar a man makes

Fair Pay Act

prohibits wage discrimination based on sex, race, or national origin for workers performing equivalent jobs

OSHA (1970)

Occupational Safety and Health Act of 1970; created nationwide workplace safety and health standards employers must follow to protect workers

Total Rewards

everything an employer offers employees in exchange for work, including pay, benefits, and incentives

Minimum Wage

the lowest legal hourly pay rate, established by the FLSA

Overtime

1.5x regular pay for hours worked over 40 per week; applies to non-exempt employees

Exempt Employee

does not qualify for overtime pay protections under the FLSA

Non-Exempt Employee

qualifies for overtime pay under the FLSA

Workers' Compensation

insurance covering work-related injury or illness regardless of fault; covers lost wages, medical expenses, rehabilitation, and death benefits; laws vary by state

Noncompliance

failure to comply with safety and health laws; can result in fines, loss of business, or criminal charges

Union

an organization representing workers in collective bargaining with their employer

Collective Bargaining

negotiation between an employer and a union over wages, hours, and working conditions

Grievance

a formal worker complaint about working conditions or a contract violation

Right-to-Work

a state law allowing employees to work without being required to join a union

NLRA (Wagner Act)

National Labor Relations Act; protects workers' right to organize and bargain collectively

Taft-Hartley Act

Labor Management Relations Act; limits union power and allows states to pass right-to-work laws

Landrum-Griffin Act

Labor Management Reporting and Disclosure Act; governs relationships between management and unions and protects union members' rights

Employee was fired unfairly →

file a complaint with the EEOC, document everything with dates and details, collect evidence, and contact an attorney

Workplace harassment occurred →

report to HR; employer should have had a clear anti-harassment policy and manager training in place

Women paid less than men for the same work →

violates the Equal Pay Act; file an EEOC complaint; employer faces fines and liability

Employee injured on the job →

use workers' compensation; covers medical bills, lost wages, and rehabilitation regardless of who was at fault

Employee denied FMLA leave →

file a complaint; FMLA requires eligible employees to receive up to 12 weeks of unpaid leave

Safety hazard ignored by employer →

report to OSHA; employer faces fines, possible shutdown, and potential criminal charges for willful noncompliance

What should the employer have done? →

implement a clear anti-harassment policy, provide manager training, and document performance issues before terminationI

What type of discrimination is this? →

identify whether it is disparate treatment (intentional), disparate impact (neutral policy with harmful effect), quid pro quo harassment, or hostile work environment

Which law protects the employee? →

Title VII for race/sex/religion/national origin, ADA for disability, ADEA for age 40+, FMLA for medical/family leave, FLSA for wage and hour issues, OSHA for safety

What can happen to an employer who discriminates? →

warning or counseling, suspension or termination of responsible parties, fines, and potential jail time for serious violations

Property Law

the area of law that establishes legal rights to properties, including who can own them, how they can be used, and under what conditions; primarily controlled by state law

Tangible Property

property that can be physically touched

Intangible Property

property with no physical presence, such as stocks, brand reputation, or IP rights

Real Property

land and anything permanently attached to it, including buildings, built-in fixtures, crops, mineral rights, and airspace

Personal Property

everything movable that isn't land, including cars, phones, jewelry, bank accounts, and livestock

Fixture Test

courts determine if personal property became real property using three criteria: attachment, intent, and adaptation to the property

Bundle of Rights

ownership is a collection of rights including the right to use, exclude, sell, lease, mortgage, and devise; individual rights can be sold separately

Eminent Domain

the government's power to take private property for public use; must pay fair market value under the Fifth Amendment's Takings Clause

Adverse Possession

occupying land openly, continuously, and hostilely for the legally required period may result in legal ownership even without purchase

Easement

the right to use another person's land for a specific purpose

Deed

a legal document transferring real property ownership; must be signed, notarized, and recorded with the county

Title

legal proof of ownership of property

Freehold Estate

ownership of real property for an indefinite period

Non-Freehold Estate

possession of real property for a fixed period, such as a lease

Lost Property

accidentally misplaced property; the original owner retains ownership