3308Chap7outline08 - 7 Principles Of Contract Law Contract...

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Unformatted text preview: 7 Principles Of Contract Law Contract 0. May Not Need To Be In Writing- if it is, 1. Promise To Perform Or Not Perform 2. Legally Enforceable 0. May NOT be for Illegal activities 1. May NOT be against Public Policy 2. May be for socially undesirable activities however, the Parol Evidence Rule prevents the introduction of oral evidence to change the written terms. 3. Improves Buyer/Seller Relationship Sources Of Contract Law 0. Legislation 1. Common Law 0. Uniform Commercial Code 1. Contracts For Goods 2. Judges' Decisions 3. Contracts For things Other Than Goods Bilateral Contract - Promise for Promise Unilateral Contract Promise for Performance Contract Classification 2. Express- Terms Discussed 3. Implied-In-Fact- Conduct Rather Than Discussion 4. Implied-In-Law- One Party Unduly Enriched At Expense Of Other Contract Enforcement 0. Enforceable- Court Uphold Validity 1. Unenforceable- Party Has Justifiable Reason For Noncompliance 2. Valid- Essential Requirements Present 3. Void- Lacks Validity/Enforceability 4. Voidable- Party Has Right To Withdraw Examples: Fraud, Duress, Misrepresentation NOT adjudicated incompetence. Contract Performance 5. Executed- Promises Performed 6. Executory- Promises Not Yet Performed Breach Of Contract 4. Party Does Not Perform 5. Remedies - Mitigate Damages 0. Negotiated Settlement = Accord & Satisfaction **Mediation helps you decide 1. Arbitration has the power to decide and the decision is final 2. Damage Award Usually no punitive damages 3. Specific Performance only where damage awarded cannot make the injured party "whole" 4. Rescission Both agree the contract is not going to work (Both rescind the contract) 5. Restitution Contract Elements Offer (Step ONE) 0. Intent/Commitment 1. Definite Terms 2. Termination occurs with: the time stated in the offer; a 3. Acceptance 4. Bilateral- Promise 0. Unilateral- Performance reasonable time, if none stated in the offer; rejection by the offeror; a counteroffer; revocation by the offeror; the offeror's death or insanity 1. Mirror Image Rule aka, the "Mailbox" rule 2. Silence = Acceptance exception, not rule, only when: 3. Deposited Acceptance 4. Mailbox Rule automatic re-orders; course of dealing allows; UCC allows conduct of the parties to give rise to a K (contract) Offer Termination 0. 1. 1 Provision 2 Lapse Of Time 2. 3. 4. 5. 6. 3 Rejection 4 Revocation 5 Destruction Of Subject 6 Offeror's Death Or Insanity 7 Performance Becoming Illegal Consideration (MAY be disproportionate) 6. Receipt Of Legal Benefit 7. Suffering Of Legal Detriment nephew would 8. Bargained For 9. Agreement Not To Sue 10. Preexisting Obligation NOT valid 11. Consideration Unnecessary be paid $2000 if he didn't drink until he was 21. In the mean time the uncle died and he nephew sued the estate and won the 2000 because he suffered a legal detriment 6. Sale-Of-Goods governed by the UCC 7. Firm Offer 8. Option 12. Promissory Estoppel Capacity 7. Minors 4. <18 in most states 5. Necessaries excludes elective surgery 6. Voidable/Disaffirm until age 18 + reasonable time 8. Intoxicated Persons/Mentally Incompetent Voidable Contracts 7. Fraud 8. Misrepresentation 9. Duress (Examples: physical force, economic force; threats of force. 10. Undue Influence 11. Mistake 0. Mutual 1. Unilateral does not make contract voidable, only mutual does 12. 13. Mutual Assent Lawful/Legal Purpose 14. 2. (Not important in China) 3. Gambling 4. Usurious 5. Unlicensed 6. Exculpatory 7. Unconscionable 8. Prohibited Restraint Of Trade- Illegal/Void Examples (of illegality) 15. Covenant Not To Compete Written Contracts 13. Interest In Land- Except Part Performance 14. Pay Debts Of Another 15. 1 Year+ For Performance 16. Sale-Of-Goods = $500+ 17. Parol Evidence prevents introduction of oral evidence to change the terms of the written agreement. Other Contract Issues 16. 17. 9. Trade Usage 10. Delivery Interpretation Assignment 11. Transfer Of Rights To Contract if transferred to two different parties, first notifies obligor has priority in receiving payment 18. 12. Notice Third-Party BeneficiariesIntended (include: Creditor or Donor does NOT include "Incidental Beneficiaries" Conditional Performance 9. Precedent 10. Subsequent 11. Concurrent 12. Express 13. Implied Levels Of Performance 0. 1. 2. Complete Substantial Material Breach Contract Discharge 3. Discharged- Party Released From Obligation 4. Impossibility 5. Commercial Impracticability Business Contractual Relationship Trends Business To Business Business To Employees Business To Consumers Ethics 14. 15. 16. 17. Business Decision: Is There A Contract? What Are The Terms? 0. How Can You Tell When A Contract With The Customer Exists? 1. If There Is Conflicting Language In The Order From And The Sales Confirmation, Which Language Controls? 2. When Is The Contract Considered To Be Fully Performed? Business Decision: The Big Mistake 19. Is The "Deal" You Made An Enforceable Contract? 20. Does The Mistake You Made Permit You To Get Out Of An Enforceable Contract? 21. What Do You Think Will Happen In This Situation? 7 End of Chapter 7 ...
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This note was uploaded on 04/15/2008 for the course MANA 3308 taught by Professor Byronstuckey during the Spring '08 term at Dallas Baptist.

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