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Chapter 4 - Contract Law and the Hospitality Industry

Terms in this set (31)

What are the six essential elements of a contract?
- Contractual capacity
- Legality
- Mutuality
- Genuine Assent
- Consideration
- Proper form
What categories of people lack contractual capacity?
Minors, very intoxicated individuals, and the mentally incompetent
What is meant by mutuality?
Meeting of the minds.
More than just an agreement, must have the same understanding of the terms in the contract.
What is the legal effect of an illegal contract?
Violates the law
- Void and unenforceable
Name three types of contracts that are unenforceable unless they are in writing
- Sale/purchase of land, dirt, property
- Paying off someone else's debt
- Contract cannot be completed within a year
Which of the following types of damages will a plaintiff in a breach of contract case be able to recover?
a. Lost profits
b. Pain and suffering
c. Punitive damages
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If a guest cancels her reservation with a hotel, how can the hotel mitigate its loss?
Hotel has cancellation policy
- If guest violates, they are liable for breach of contract
If a plaintiff in a breach of contract case is unable to determine the amount of its loss, is it entitled to recover any damages?
No
List eight items that should be included in a catering contract
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List eight items that should be included in a convention contract. Do not repeat any of the items you listed in response to question 9
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What is an agreement not to compete?
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What is an attrition clause?
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What is a no-clause termination clause?
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What is a forum selection clause?
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What are the elements of a claim for interference with contractual relations?
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As a general rule, are contracts entered on the Internet valid?
YES. They are as valid as oral contracts.
Identify whether each of the following is an officer or an invitation to negotiate
a. Three pounds of fresh shrimp will cost $23.50
b. I will play the piano at your restaurant from 5:30 until 9:00 p.m. every night during October for $90 a night
c. I have gourmet ice cream for sale
d. I am thinking about selling my motel
e. Private swimming lessons are available at the hotel pool for $25 per half hour
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Why, in a breach of contract case, must the amount of the plaintiff's damages be proven to a reasonable certainty?
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If a contract term is ambiguous, how will a court decide its meaning? How can parties to a contract avoid ambiguity?
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Which of the following contracts must be in writing to be enforceable?
a. A contract to hire a banquet manager for three years
b. A promise made by a casino patron to cover the betting debts of his friend
c. A contract to hire a musical to to play for three weekends at a restaurant for a total of $2400
d. A contract to purchase three acres of land on which the buyer intends to build a restaurant
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Why does the law require a nonbreaching party to mitigate damages?
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Why, as a practical matter, should all contracts be in writing?
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What determines the obligations owed to a hotel when a person or organization with a hotel reservation cancels the reservation?
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To successfully pursue a case for interference with contractual relations the plaintiff must prove, in addition to other elements, that the defendant was aware of the existence of the contact between the plaintiff and a third person. What is the policy reason for making this a necessary element?
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We learned that a name typed at the end of an offer or acceptance sent via e-mail is considered the equivalent of a person's signature. Why is this so?
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In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation he wrote a memo documenting the agreement, initialed it, and sent a copy to the sales representative. A dispute arose between the parties and the linen company sued the hotel. Does the Statute of Frauds bar the lawsuit? Why or why not? Now suppose the breaching party was the linen company. Does the Statute of Frauds bar that lawsuit? Why or why not?
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Laurie is planning a reception for her parents' 50th wedding anniversary. She and her parents keep kosher, which means they follow dietary laws prescribed by the Jewish religion. She decided to hold the anniversary party at the West-side Party House because the manager, under pressure to increase sales, told Laurie the Party House serves kosher food. Laurie later discovers that the Party House does not serve kosher food. If she cancels her contract with the Party House and holds the party elsewhere, will she be liable to the Party House for breach of contract? Why or why not?
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A restaurant ordered 20 cases of champagne for New Year's Eve. Delivery was due on December 29, but the seller failed to deliver. As a result the restaurant was unable to offer its New Year's Even patrons a midnight champagne toast. The hotel sued the seller for breach of contract, claiming lost profits from both the midnight toast and future parties the angry patrons would be discouraged from hosting at the restaurant. Discuss the restaurant's chances for success in this lawsuit
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A contract for yard maintenance services between a hotel and a service company contains an ambiguous term. A dispute arose concerning the term because the parties to the contract interpreted it differently. A lawsuit resulted. What rules of contract interpretation will the court use to determine the meaning of the unclear term?
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Tyshawn sold a bar he owned to Nicolette. A provision in the contract precluded Tyshawn from opening another food or beverage establishment within 10 miles of the bar for a two-year period. If Tyshawn bought and operated a Motel Six franchise within a 10-mile radius of the bar and within one year after the sale, would he be in violation of the contract? Why or why not?
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Shania purchased airline tickets to Las Vegas online. Prior to completing the purchase she was required to initial a statement that said she had read the applicable rules and restrictions and she agreed with them. The rules were readily available for her to review by clicking on an icon. If Shania initials the statement without reading the rules, is she bound by them? Why or why not?
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