Law Final

Front 1

Six rules of offer and acceptance

Back 1

1. A contract doesn't exist until an offer is made by one person and accepted by another

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2. An invitation to do business is not an offer

3. an offer must be communicated

4. an offer has lapsed if time period has expired, reasonable time, or offer becomes insane or dead

5. an offer may be revoked at anytime prior to acceptance

6. a contract becomes binding the moment an offer is accepted

Front 2

When does an offer come into existence?

Back 2

- Step 1: Identify method of communicatingacceptance (i.e. verbal, mail, telephone, etc.)- Step 2: Ask -> Is this an accepted method ofcommunication? Yes, if it is the method specified in the offer. Yes, if it isthe same method as used in the offer or a more efficient method- Step 3: If answer to Step 2 is “NO” thenacceptance occurs WHEN RECEIEVED- Step 4: If answer to Step 2 is “YES” then followrules for each method of communication…

Front 3

What is revocation?

Back 3

know when exactly an offer can no longer be revoked.

Front 4

International Contracts

Back 4

laws of the country where the contract actually come into existence determine who has jurisdiction

Front 5

Consideration

Back 5

the promise of a price or benefit to be paid in return for another's promised act or benefit.

Front 6

General rule of Consideration

Back 6

must have consideration flowing both directions in order to have a binding contract

Front 7

Adequacy of Consideration

Back 7

the court does not care how bad a deal is, they just care if consideration exists

Front 8

Special rules to Consideration

Back 8

Past consideration is No consideration

A gratuitous promise does not prove basis for a contract

A promise to perform a pre-existing contractualobligation does not constitute consideration

Front 9

Estoppel

Back 9

to prevent or stop something

(If someone relies on a promise that leads totheir detriment, the person that made the promise will be stopped from denyingto fulfill that promise)

Front 10

Concept of Capacity

Back 10

not physical but legal capacity

Front 11

A void Contract

Back 11

contract that never had legal existence, it can never become a real contract

Front 12

A 'voidable' contract

Back 12

it is a good contract, but it has a defect in it that could cause it to be killed

Front 13

Repudiation

Back 13

refusal of contract in party to perform its contractual obligation

Front 14

Quantum Meriut

Back 14

what is reasonable in circumstances

Front 15

Use of a Seal

Back 15

if you have a written document that is signed and sealed, that can be a substitution for consideration

Front 16

Consideration but still no contract?

Back 16

if you lack "meeting of the minds" you won't have a contract

Front 17

What happens when Minor does repudiate?

Back 17

he/she must give back the goods but only in the condition that they are in, and only if the minor has them in possession

Front 18

Can you use Tort Law to do what Contract law can't do?

Back 18

No. if the very thing the contract is about is what caused the harm in Tort, you can't go to tort law to get around the contract

Front 19

What happens if the Minor reaches 19.

Back 19

Stays the same

contract that is permanent ongoing in nature

whatever is left in the contract remains

Front 20

Insane or Intoxicated

Back 20

contracts are voidable and can be repudiated if the person is insane or intoxicated

Front 21

Define Incapacitated

Back 21

You do not understand what you are doing.

Front 22

3 Special Rules for Insane or Intoxicated

Back 22

1. if you will repudiate, you have to show that you because of your insanity or intoxication you were actually incapacitated

2. if you're going to repudiate b/c of your insanity or intoxication, the incapacity must be known to the other party at the time of contract

3. if you're going to repudiate because of your insanity or intoxication you must do so promptly after coming out from the incapacity otherwise you may have binding contract

Front 23

Rescission of a Contract

Back 23

an order of the court to cancel or revoke a contract

Front 24

Rectification of a contract

Back 24

is correction by the court of a written document to reflect accurately the contract mae by the parties. it is the correction of a written term to correspond to the true intention of the parties

Front 25

Why are courts reluctant to rescind contracts?

Back 25

damages how binding a contract can be

takes time

unjust results to third parties

Front 26

Legal Test for Rescission

Back 26

would a reasonable person have relied on the term, as being intentionally made, when entering into the contract

Front 27

The court may grant rectification if:

Back 27

1.there is a clear, complete unconditional prior agreement between parties

2.there is no evidence of change in agreeement

3. the difference between the original agreement and the written document can be best explained as an error

Front 28

Mistake in Assumption - Legal test

Back 28

the courts may grant recession if the mistake in assumption is so material it alters the very nature of the contract

Front 29

Non Est Factum

Back 29

"Not my Document" not the document the person intended to sign

Front 30

Discharge of Contracts By Performance

Back 30

if all requirements of the contract are filled, not ongoing obligations, then the contract is discharged

Front 31

Discharge of Contracts By Agreement

Back 31

a. Mutual agreement to terminate

b. Replace Original with New agreement

Front 32

Novation

Back 32

material change in original K

change in parties

Front 33

Accord and Satisfaction

Back 33

when there is a dispute with original K and the parties come to a settlement agreemetn

Front 34

Condition Precedence

Back 34

future event must occur to have a fully binding contract if this doesn't happen then k is discharged

Front 35

Condition Subsequence

Back 35

future event that if it happens K will be discharged

Front 36

Frustration

Back 36

when K becomes impossible or very close to impossible to perform, then K is discharged

Front 37

Fraudulent Misrepresentation

Back 37

Most serious. is an inaccurate representation of fact made without any belief in its truth, with the intent the person to whom it was made should rely on it, and that person did in fact rely on it

Front 38

Fraudulent Misrepresentation must prove the following:

Back 38

1. representation was made by wrongdoer to victim

2.representation was a statement of fact

3. representation was false

4. the wrongdoer knew the representation was false or made it recklessly

5. the wrongdoer intend that victim to be induced to enter contract by the represntiontion

Front 39

Negligent Misrepresentation

Back 39

incorrect statement of fact made without due are for its accuracy

Front 40

Innocent Misrepresentation

Back 40

is an inaccurate representation of fact made without any intention to deceive , but on which the victim has relied in entering into the contract

Front 41

Silent Misrepresentation

Back 41

if a contract is of "uberrimae fidei" meaning of utmost good faith, there will be a duty to disclose material facts and failure to do so may be misrepresentation