Contracts Outline- CH 2- Intro

Contracts Outline- CH 2- Intro - Contracts Outline CH 2:...

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Contracts Outline CH 2: Grounds for Enforcing Promises I. Intro a. Problem with deciding which contracts to enforce: How do we know there’s a deal b. 2 Contract Actions to solve the Problem in Middle Ages i. Writ of Covet- 1. Contract on paper 2. Signed by parties 3. Red Wax impressed with Code of Arms ii. Writ of Debt 1. Unilateral Contract a. One party has already done what they were supposed to do b. All that remains is for payment 2. Since one party made their promise for some reason, there must have been a deal c. Statute of Frauds i. Certain transactions are so important that we want to assure there is a deal ii. We require a written contract for 5 contracts: 1. Land Sales 2. Contracts that take longer than a year to perform 3. Sale of goods > $500 4. Third Party Guarantees 5. Marriage (outdated) d. All Promises ARE NOT enforced on the basis of moral grounds i. All promises in a business context are not enforced because 1. A lot of promises are made when negotiating deals 2. We need to be able to retract if needed in order to get the deal done 3. We want to remain flexible in negotiation process II. Formality a. Congregation Kadimah Toras-Moshe v De Leo- Oral contract to gift money to Congregation in return for a library named after decedent i. Not enforceable in the first place because not in writing ii. Also, No Substantial consideration or reliance 1. For Substantial Consideration a. The promise to put your name up there was said AFTER decedent made his promise to give money to the church b. There was no promise for a promise at the same time 2. No Reliance a. Reliance would have been to make the promise then build the library, then go down after decedent died to get the money b. The synagogue did not start renovating the library until they had the money c. A hope or expectation is not reliance iii. The old man offered the money without first knowing about the library dedication 1. There was no bargain for a bargain b. Fuller, Consideration and Form i. The Covet has terms of agreement and the breach is determined on whether the parties complied with their part of the deal
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ii. The Seal did not require consideration for enforcement 1. As long as there’s a seal on the covenant, its good 2. It does not matter what the promise is iii. Writ of Assumpsit- 1500s 1. Consideration was developed to enforce contracts c. Formalism and The Seal i. The Seal 1. Used to authenticate transfers of ownership, especially transfers of interests in land by way of “deed” 2. Also used to make promises enforceable ii. The Use of a Written Instrument d. Gifts and Promises i. Love and Affection is standard for a Gift 1. It is not sufficient for Consideration III. Bargain Promises- Consideration a. Consideration is a mechanism to determine which promises the court will enforce- namely those involving a bargained-for exchange where: i. One party grants something of value (which may be a promise) ii. To induce the promise on the part of the other party iii. The parties assent to the transaction
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Contracts Outline- CH 2- Intro - Contracts Outline CH 2:...

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