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← * contract- an agreement that has the legal force of the law; legally binding agreement
← -difference between social agreements and legal agreements, the law does not
enforce social agreements
← -suing for breech of contract you want damages- *the law provides a remedy to
the injured party
← -General contract law governs all contracts outside of the Code-employment, service,
land, insurance, etc.
← -Legality of object
← -Types of contracts
← -Voidable: a contract, but for some reason persons can avoid legal duties of
contract b/c of lack of capacity or the way it was formed
← **-Promissory estoppel: usually promises are unenforceable unless they are in a real
contract, but sometimes a non-contractual promise can be enforced-ex: the promisor reasonably
expects that the promise induces the promise to take action or non-action
CH 9
-Implied tort
-Implied in law- where the courts will hold a contract even when there isn’t one
-Uniform Commercial Code (UCC)- if a merchant makes an offer to you have to keep it
open for 30 days……?
CH 10
- UCC
CH 11
- latent defects- hidden defects
- fiduciary
- scienter
- duress- know diff btw criminal prosecution and civil prosecution (the threat of one)
CH 12
- past consideration
- statute of limitation- the amt of time you have to file a law suit
- forebearance- to give up
- promissory estopibble
- unliquidable debt
← -Offeror to offeree
← -Promise for promise (bilateral), promise for act (unilateral), act for promise (unilateral)
← -Offer MUST be communicated to offeree, have an intent to enter a contract, and be
certain
← -Preliminary negotiations: ex: if A says to B: will you buy my car for $xx? And B says
Yes, there is no contract
← -Ads: ads are NOT offers b/c they don’t contain a promise and have no terms of making
a contract
← -Auction: “how much am I offered?”, bidder bids, can withdraw prior to auctioneer’s
acceptance but not after, auctioneer can withdraw items but only if no bids are made
← -Duration of Offers
← -Lapse of time
← -Rejection: effective when offeror gets the rejection receipt and only then
← -Death
← -Destruction of item
← -If there are specific ways an offeror wants communication back, the offeree
MUST do it that way, otherwise it is ineffective
← -If a rejection is sent, then an acceptance, whichever one gets there first is what
goes
← -Variant Acceptances
← -Code: acceptance CANNOT vary or deviate from the terms of the offer
←
← Ch. 11 Invalidating Assent (Agreement); Real Assent
← - have an offer and an acceptance…you have a contract….the real assent may be lacking
therefore one person may be able to get out of the contract
← 1. (Easiest example) Duress- the wrongful force or threat that precludes and prevents the
free will from operating; note: almost all of the chapter you see the results of the contract being
voidable, the deadly force is if the contract is void; it’s a minutia
← -Can threaten w/ civil law suit, not criminal is not duress; threatening to sue is
NOT a wrongful threat
← 2. Undue Influence- one person has excessive influence over another party and uses that
influence to persuade someone into a contract; persuasion over another
← -makes contract voidable
← 3. Fraud- the misrepresentation (lie) of a material fact/ important fact made with
knowledge or culpable ignorance relied on by the other party to their detriment or injury;
basically when you lie and induce someone into a contract; normally an opinion will not suffice
for fraud, expertise is sometimes an exception
← Ex) selling a car, and lie about your car being wrecked before (it had)….change it…say
well is it a good car, and you say it’s the best car you can buy (not fraud b/c its your opinion)
← -fraud in the execution: make someone sign something but didn’t know they
were really signing something else; renders the contract void (T/F); rarely see this; the actual
document is fraudulent
← 4. Mistake of fact- if you are unaware for example that your car WAS in an accident but
it was before you owned it and you were unaware of the situation; makes contract voidable
← 1.False Representation
← 4.Justifiable/Detrimental Reliance
← -paid in full- if you cash a check that says “paid-in-full” then you agree to the terms; if
you try to then sue it will be almost impossible for that suing to come through
← -liquidated debt- its old and the amount is not longer is not in dispute
← -something of value
← -bargained-for exchange
← -Legal Sufficiency
← -the consideration exchanged for the promise must be either legal detriment to
promisee OR legal benefit to promisor-in return for the promise, the promisee must give
up something legal value (item or $) OR the promisor must receive something legal value
(item or $)
← -preexisting contractual duty: can’t offer more than already in contract, unless the
contract changes-ex: job duties
← -Bargained-For Exchange
← -Past consideration: promise made on account of something that has already been
done IS NOT enforceable
←
← Ch. 13 Illegal Bargains
← (2 parts of studying: types of contracts that may be illegal (agreements that violate a
specific statute); the second part (agreements that are illegal b/c they violate public policy)
← *Note:
← -regulatory license: regulates credit hours for license every year-dr.,
lawyer, architect, etc.
← -gambling statutes
← -*usury statues: refers to interest rate or finance charge that is excess of what the
law allows; no there is no one usury rate; max rate for charging interest above what the law
requires; illegal when the rate is considered above the usury
← *if I put on the test something referring to something of usury referring to the
minimum interest rate, its not it’s the max rate.
← -blue laws
← -1. sale of a business: refrain from entering into competition (make sure
to get the sellers to sign a non-compete)
← -2. employment contracts: can’t work for competition (same issue) ex)
train a college graduate and then years later he opens his own business.
← hold harmless- school sporting events and field trips; common in a lease contract
← -in LA one way to defeat a hold harmless: get shocked and put him on notice
beforehand, can then sue; also can sue if an accident takes place in common areas
← -Effect of Illegality
← -unenforceable
← -if they continue using the product after 18, they ratify the contract (can not ratify until
after a minor becomes a major)
← Incompetent Persons