Uniform Commercial Code
A comprehensive Statutory Scheme that includes laws that cover aspects of commercial transactions
A promise for an act A contract in which the offeror's Offer can be accepted only by the performance of an act by the offeree
A contract expressed in Oral or written words: A contractor will build building, with Who, What, When , Where, Why
What element is typically missing in a contract
Quantity, if Quantity is not listed, it is unenforceable.
A contract inferred from the contract of the parties. IN which agreement between parties has been inferred by their contract. Page 174
Essential Elements for establishing a contract
Objective Intent: Did the offeror mean to make a contract?
Express Terms: Who, what When, Where, Why, Quantity
A contract in which at least one party has at least the option of voiding the contract.
In an advertisement who is the offeror, and offeree?
Store is the Offeree, and You are the Offeror. Unless the Store puts quantity in advertisement then they are the Offeror and you are the offeree
The manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.
Reward: 2 elements needed
1.) Have knowledge of the reward prior to completing the requested act
2.) To perform the requested act
Person Finding becomes the offeror
Rewards are enforceable and only 1 person can collect
Auction With Reserve
If the person selling does not get the money that they want, they can pull the item, and choose not to sell
Contractor making an offer to build building with the specifications for x number of dollars. FUS has ability to refuse or accept the offers
I will build for $100, and person rejects offer and asks for $750. Counteroffer. Basically nothing more than negotionation
Law can Terminate COntract When:
Supervening Illegality, made illegal by new law
Promissary Estoppel In Consideration
An Equity Doctrine that permits the court to order enforcement of a contract that lacks consideration. Or Detrimental reliance: Example of Roofer with wrong address
What is exchanged between two parties: IN a Contract you have to get something but you must give something up
Words and Actions lead someone to believe there is a contract present. Court will lean in favor of person who has the detriment
Mirror Image Rule
States that an offer must be accepted exactly without modifications. The offeror is the master of his own offer. An attempt to accept the offer on different terms instead creates a counter-offer, and this constitutes a rejection of the original offer.
Silance is NOT an ecceptance. This protects the offeree from being legally bound to offers because they failed to respond.
3 exceptions to SILANCE
1) The offeree has indecated that silance means assent, 2) The offeree has signed an agreement indecating continuing acceptance of delivery until further notification.
3) Prior dealings between the parties indecated that silance means acceptance.
Somthing a person is already under an obligation to do.A Promise lacks concideration if a person promises to perform a preexisting.
Promise based on the past performance of the promise. Will not support a new contract. New consideration must be given.
An agreement whereby the parties agree to accept something different in satisfaction of the original contract.
refers to the provision of approval or agreement, particularly and especially after thoughtful consideration.
is binding when a promise which the promisor should reasonably expect to induce action - no consideration (only for charities). Key: look for the intent of the donor
A situation in which one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract or makes a will.
The persuasion by the wrongdoer must overcome the free will of the innocent party.
When an assertion is made that is not in accord with the facts.
Can be oral or writen.
To be actionable as fraud, must be from an existing or past material fact.
Two types of Misrepresentation
Intentional: Fraudulent Misrepresentation
Innocent: When a person makes a statement of fact that he honestly and reasonably believes to be true even though it is not.
Element of to prove fraud or Misrepresentation
1. The wrongdoer made a false representation of material facts.
2. The wrongdoer intended to deceive the innocent party.
3. The innocent party justifiably relied in the misrepresentation.
4. The innocent party was injured.
Parol Evidence rule
A rule that oral evidence cannot be used to contradict the terms of a written contract,
Evidence of a prior or contemporaneous agreement may not be admitted at trial to vary the terms of an integrated written contract
Exceptions to Parol Evidence rule
1. Shoes that a contract is void or voidable
2. Explains ambigouse language
3. Concerns a prior course of dealing or cource of performance between the parties or usage of trade.
4. Fills in the gaps in a contract
5. Corrects an obvious clerical or typographical error. The court can reform the contract to reflect the correction.
Contract of Adhesion
Preprinted forms whose terms the customer cannot nagotiate and that they must sign in order to obtain a product. Ex: Car sales contracts
The six areas of writing requirements
1. Contracts involving interests in Real Property
2. One-year Rule- A contract that cannot be performed by its own terms within one year of its formation must be in writing.
3. Calateral contracts
4. Marraeg contract- pernuptual -antinuptual: protects the person with the money. Both have to agree, be specific, each person of the party must be represented.
5. Administrator Executer of astate to pay out of pocket to Debt.
6. Contracts for the sale of good above $500- has to be in writing if above $500, also has to have evidence of sale.
A promise that becomes a covineant after it has been met.
1. Conditions precedent-
2. Condition subsiquent-
3. Concurent Condition-
Condition that requiers the occerance of an event before a party ex: has to snow 6" before clearing the road
condition that states that when an occurance or nonoccurance of an event autematically excuses the performance of an existing contractual duty to perform Ex. at time of closing if the house suffers damages of 40% or more the buyer can back out.
Third Party Beneficiary
(intended) third party who is not in privity of the contract but who has rights under the contract against the promisor. Ex: auto insurance
Legal Monetary Damages
1. Compensatory damages
2. Consequential Dameges
3. Normal damages
4. Liquidated Damages
Damages that compensate a nonbreaching party for loss of a bargain. It places the places the nonbreachign party in the same position as if the contract had been fully performed.
Damages that compensate a nonbreaching party for foreseeable special damages that arise frin circomstances outside a contract. The breaching party must have known ar should have known that these damages would have result from the breach.
Damages awarded against the breaching party even though the nonbreaching party has suffered no financial loss because of the breach. A small $1 is usually awarded.
An agreement by the parties in advance that set the amount of damages recoverable in case of breach. These damages are lawful if they do not cause a penalty.
Performance by a contracting party that deviatesonly slightly from complete performance
Discharge of a contract
1) Mutual agreement
2) impossability of performance
3) commercial impracticability
4) By operation by law
Force Majeure Clause
A clause in a contract in which the parties specify certain events that will excuse nonperformance
Statute of Limitations for a contract
They loose their right to sue after a certain period of time if there is a breach of contract.
4 years if it calls for installments
15 years for like a student loan, from when a first payment was made...p259,337-338
Enforcement of Remedies p274
1) Issue to writ of attachment- Court can issue a government agent to seize the property anf sell it if the there is a breach.
2) Issues a writ of gernishment- The court can go into the breaching party's accouts and take the money that is owed to the person that is to be paid.
A remidy that is available if there has been a breach if contract that cannot be adequately compensated through legal remedy or to prevent unjust enrichment.
An equitable doctrine that perrnits the court to write a contract to express the parties' true intentions.
Electronic Communications Privacy Act
This act makes it illegal to intercept an electronic communication
Uniform Computer Information Transaction Act
A modal law that creates contract law for the licensing of info tech rights
THe Manifestation of Willingness to enter info a bargain so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it
Termination of an Offer by law
1.) Destruction of the subject matter
2.) The death or incompetency of the offeror or the offeree
3.) A supervening illegality
4.) Lapse of time of the offer
Termination of an Offer by act of the parties
1.) Rejection of an offer
2) Counteroffer of the offeree
3.) Revocation of an offer by the offeror
What is exchanged between two parties in a contact you have to get something but you must also give something up
An event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation
A situation in which one party threatens to do a wrongful act unless the other party enters into the contract
A Law that sets the upper limit on the interest rate that can be charged on certain types of loans
A universal defense that can be raised against both holder and holder in due courses to prevent the enforcement of a negotiable insturment
Delegation of a duty
A transfer of contractual duty by an obliger to another party for performance; Also known as delegation
A situation that occurs where one or both of the parties to a contract have an erroneous belief about the subject matter, value, or some other aspect of the contract