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49 terms
Terms | Definitions |
|---|---|
 statute of frauds | requires certain contracts be in writing and signed to be legal |
| disaffirm | when minor opts out of a contract |
| ratify | secures contract automatically a reasonable time after minor becomes of legal age |
| main purpose exception | intended to insure the primary benefactor of the original contract is answerable for the debt. Exception to statute of frauds written requirement |
| hamer v. sidway | consideration case for refrain equaling ample consideration. Uncle promise to nephew to refrain from party lifestyle. |
| promissory estoppel | used at the courts discretion based on elements 1) promise made 2) reliance upon promise 3) harm occurred |
| FSU v. burt reynolds | court found to be promissory estoppel case in which FSU was harmed |
| Violin case | sold name brand violin for $100; later found to be worth 1 mill; contract binding on mutual belief |
| promises enforced without consideration | 1) when under seal 2) unenforceable debt |
| unenforceable debt | 1) bankruptcy 2) statutory limitations expire |
| unconscionable contract | shocking or one-sided; can toss contract or opt to make relevant changes; |
| types of unconscionable contracts | 1) exculpatory 2) price is obviously unacceptable to all |
| Exculpatory Clause | not liable for (gym, dry cleaner...) court determines legality based on whether or not signer knowingly had option not to sign |
| Continuing contract | Alaska fishermen; cannot be forced to honor contract initiated after original contract if duress was placed upon |
| krell v . henry | contract discharged due to frustration; specific hotel reserved without cancellation policy stipulated; specific reason for reservation no more; purpose of contract was undone |
| frustration | elements used to discharge contract: 1) unexpected event 2) risk allocation (no refund stipulated?) 3) main purpose (is the original purpose undone?) |
| parol evidence rule | states that once a contract is written it is final. Any oral or written words outside the 4 corners of the contract are inadmissible in court |
| parol evidence exceptions | evidence may be admitted if there is evidence that contract was void or voidable due fraud; 2) to explain ambiguous language; 3) if concerns prior trade or business dealing; 4) to fill in omissions; 5) correct clerical error |
| covenant not to compete | judged on a case by case basis using reasonable standard; if time, location, business stipulations are unreasonable, court would void due to unconscionable contract |
| standards of interpretation | used for ambiguous words |
| Ordinary word interpretation | use usual dictionary |
| technical word interpretation | give technical meaning unless a different meaning is clearly intended |
| specific term interpretation | presumed to qualify general terms |
| usage of trade term interpretation | use trade language if both parties are from same trade unless both specify to do otherwise |
| handwritten words in contract prevail over... | both typed and preprinted words |
| typed words in contract prevail over... | preprinted words |
| competency license | professional license to protect the public |
| revenue-raising statute | occupational license; exception - court protects consumer if they assume professional should be licensed |
| past consideration | cannot attempt to collect after the fact |
| adequacy for consideration | parties are free to agree on the consideration they are willing to pay or receive under a contract |
| elements of fraud | 1) false (untruth) 2) representation (seller must disclose) 3) material (significant lie) 4) fact (lie of fact not opinion) 5) knowledge (made w/ the intent to deceive) |
| waiver of defense clause | waiver that ensures no impairment or defenses will be raised |
| assignment | voluntary transfer of contractual rights by the obligee to another party |
| obligor/debtor | party who owes a duty of performance |
| obligee/creditor | party who is owed a right under a contract |
| assignor | obligee who transfer the rights to receive a performance |
| assignee | party who the right to collect has been transferred to |
| subsequent assignee | assignee can assign to yet another party |
| creditor | the lender in a credit transaction |
| consideration | something of legal value given in exchange for a promise; 3rd element of an offer |
| tangible payment example | money, property |
| performance of an act example as consideration | providing legal services |
| forbearance of a legal right as consideration example | accepting an out-of-court settlement in exchange for for dropping a lawsuit |
| non economic forms of consideration | refraining from drinking, smoking, swearing,.... for money for a specified period of time (case - Hamer v. Sidway) |
| Consideration (2) elements | something of legal value must be given (legal benefit rec'd or legal detriment suffered) AND a bargained for exchange |
| Gift (gratuitous) promises | unenforceable b/c they lack consideration; to make enforceable, the promisee must offer to do something in exchange (consideration) for the gift |
| Completed gift promises | cannot be rescinded after-the-fact for lack of consideration; they are absolute and irrevocable |
| Alden v. Presley | unenforceable as an uncompleted gift promise |
| "shocks the conscious of the court" | **some states recognize exception to adequacy rule allowing a party to escape a contract if the inadequacy does this |
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