Study Guide Exam 3 - Study Guide Exam 3 Chapter 8 Special Legal Issues Concerning Agreements Nehemiah 5 o Illustrates economic duress by not being

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Study Guide Exam 3 Chapter 8: Special Legal Issues Concerning Agreements: Nehemiah 5 o Illustrates economic duress by not being able to get grain to stay alive, some have mortgaged their fields, vineyards and homes to get grain during the famine. Some had to barrow money to pay the king’s taxes on their fields and vineyards. Some had subjected their sons and daughters to slavery, and they remain powerless because their fields and vineyards belong to others. o The poor that could not pay the debt would loose ownership of their fields and vineyards and enslave their sons and daughters Deuteronomy 23 o Says do not charge you brothers interest, you may charge foreigners interest but not a brother Israelite. Leviticus 35 o Says not to treat your brothers as slaves even if they sell themselves to you. Treat them like a hired worker and also treat their children like hired workers. A Brief Overview of Contract Law: A contract is simply a legally enforceable promise. To have a binding contract, there must be an offer and acceptance, consideration (something of value must be exchanged), legal capacity (minors and the mentally incompetent are not bound by their promises), legal object (contracts to commit murder, for example, are not enforced by courts), and legal form (some, but not all, must be written and signed to be legally enforceable). To determine if there is an offer and acceptance courts follow what is called “the objective theory of contracts.” Sometimes the courts will create a contract where none exists to prevent “unjust enrichment.” For example, an unconscious person at the scene of an auto accident can’t accept an offer to provide medical treatment; nevertheless the courts will require the individual to pay a reasonable sum of money for the medical services rendered under the “quasi contract” doctrine. The most used rule of contract interpretation is the “plain meaning rule” in which the contract is read as a whole and words are give their ordinary meanings. Mistakes: Unilateral mistake – is made by only one party to a contract and typically does not excuse the mistaken party from the contract; however if the other party of the contract knows or should have known a mistake was made, the contract is not binding. o For example, a construction bed for $1 million on a job that the other party knows should cost about $2 million would be so low as to alert the other party that a mistake must have been made. o A unilateral mathematical mistake that occurs without gross negligence will excuse the mistaken party form the contract. Bilateral mistake – is one made by both parties about some material characteristic of the subject matter of the contract. Neither party is bound.
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This note was uploaded on 04/15/2008 for the course BLAW 460 taught by Professor Reid during the Spring '08 term at Abilene Christian University.

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Study Guide Exam 3 - Study Guide Exam 3 Chapter 8 Special Legal Issues Concerning Agreements Nehemiah 5 o Illustrates economic duress by not being

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