law final review_StudyGuide - H-387 Contracts 3 elements...

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H-387 Contracts 3 elements for the valid contracts 1. Offer: whatever a person says or write it down—not their intention It is valid for a reasonable amount of time -jury question Words matter Asking is an invitation, but not an offer 2. Acceptance: Statue of limitation (next day two years)- how long do you have to file a claim? Time to accept the offer = stated time or reasonable time 3. Consideration- Both sides have to have consideration Ex): Employees— work for an employer; Employer— Offer money - both sides give up something 4. Mutual Assent: not an actual element of contract. - Both parties must understand what they are getting into. Terms must be specific enough so that both parties to a contract demonstrate intent to be bound. Rule of counter offer: a counter offer is a rejection—if you make changes on the contract- counter offer- rejection Objective manifestation of intent: objective test (look at what is expressed) Look at what was in the mind/ what a reasonable person would be suggesting in a statement. Damage You will get what you lose—contract damages are actual losses Damages = in a worse situation on terms of the contract. By law, we have a duty to mitigate (do something). Breach of contract has no liability if there is no lost on plaintiff's part. " Efficient Breach " = everybody wins Damages in contract is limited to loss No cause of action Promotes disincentive to follow through contract because of the ideal of “Duty to mitigate.” Sometimes you have to breech the contract because it’s the right thing to do or there is something better. So you strike up a deal with that person. You compensate for the loss. " Liquidated Damages clause" If you breach a contract you have to pay $, liquidated damages are only enforceable when . . The amount of agreement represent a good faith attempt to estimate and doesn't represent a penalty Liquidated damages provision has to be stated, for it to be considered. If liquidated damages can't be enforced we go back to normal contract damages. Liquidated damages occur when it's specified in the contract. When there is no loss, damages would be considered as punishment. Gift is not enforceable— one side does not give up a legal right A waiver of any legal right at the request of another party is a sufficient consideration for a promise- Anson, Cont. 63 " Specific Performance " = have to perform the contract When dispute is over land or something unique act. Court will force the breacher to enforce contract. . Land: real property. The specific property that can't be compensated with $ . When performer is so special that no one else can do it (Court can't force someone to work but can prevent the person to work for someone else) Capacity to Contract - Infancy: contract is voidable by the infant - Insane person- judicially determined to be insane
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law final review_StudyGuide - H-387 Contracts 3 elements...

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