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1.Test Chapters (33, 34, 11&12, 13&14, 36, 37, 38)2.Contract Elements (Chapters 11-14)a.Element #1: Agreement1.Reasonableness: needs to be clear to reasonable person2.Intent to follow throughii.Parts1.Offer: needs to be heard or reada.Intent to enter into a contractb.Reasonably definitive -clear to reasonable personc.Must be communicated – someone hears or readsd.Reward offer springs to life when read, legally bound upon actioni.Buy one get one free1.Once buy one, need to get free oneii.Ads are not, they are invitationse.Termination of offeri.Revocation: person who made offer can do this BEFORE acceptanceii.Rejection: offeree rejects, offer extinguishediii.Termination: by law; one part dies, goes insane before acceptanceiv.Lapse of time: reasonable time2.Acceptance: needs to be senta.Intent to enter into contractb.Mirror image: reasonable person standardi.Acceptance must be the same as the offerc.Must be communicatedd.Acceptance takes into effect upon sendingi.Offerer cannot apply conditionsb.Element #2: Consideration (if no consideration, no value)i.Parts1.Both must give this2.Parties define value, doesn’t need to be equala.Pre-existing obligations cannot be considerationb.If parties redefine contract, might not be seen as considerations3.Bargained for: take it or leave it is a bargained valuea.Not seen in adhesion4.Detriment: some negativea.If one party walks away, other will suffer = valueii.Court can enforce w/o consideration if1.Promise to charity2.Promissory estoppel: person relies on promise, will suffer if not madea.Ex. Promise to pay tuitionc.Element #3: Capacity
i.Voidable contracts1.Minorsa.General rule: can walk away from contractb.Ratification: they can ratify it when 18 by acknowledgingc.Exceptions: contract for necessities, court can force follow through2.Mentally impaireda.Insanityi.Legal insanity: no legal contract (VOID)ii.Insanity in fact: do not have full legal capacity1.Has partial legal capacity, voidable3.Intoxication: doesn’t matter if voluntary or involuntarya.Can walk away if they want to VOIDABLEb.Needs evidence of enough intoxication4.Lack of consenta.Fraudi.Needs to be associated w/ material factii.Material fact: if fact decision is based on1.Immaterial fact doesn’t matterb.Mistake of fact: lack of understandingi.Mutual: both parties are mistaken on price1.Can be voidableii.Unilateral: one party is mistaken; own fault5.Duressa.Out of fear = VOIDABLEb.Undue influence: elderly peopled.Element #4: Legal purpose (court will try to rid of illegal purpose, let stand)i.What can make contract illegal1.Restraint of trade: could be on business, industry trade routesa.Covenant not to compete: don’t want employee competingi.These are illegal when it is big restriction or restraint1.Unreasonable2.Exculpatory clause: if death occurs, can’t sue, no liabilitya.Exception: intentional, extremely reckless, ILLEGAL3.Unconscionability: one sided contract, something isn’t righta.Court considers: bargaining power, education, age, language barrierb.