Exam 3 Review - 1 Contracts a Definition an agreement that a court will enforce b Remedies i Money damages(1 Expectation interest(a Requirements to

Exam 3 Review - 1 Contracts a Definition an agreement that...

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1) Contracts a) Definition: an agreement that a court will enforce b) Remedies i) Money damages (1) Expectation interest (a) Requirements to obtain – damages caused by the breach ; foreseeable; prove with reasonable certainty (reasonably within the aspects of the contract) (b) Sub-types (i) Direct damages – directly from breach (ii) Consequential damages – reasonably foreseeable loses indirectly caused by the breach (iii) Incidental damages – out of pocket expense incurred due to breach (storage costs) (2) Restitution interest (a) When awarded/recoverable – get property back (3) Reliance interest (a) When awarded/recoverable – reimburse P for $ spent due to reliance of Ds promise ii) Mitigation of damages iii) Equitable remedies (1) Injunctions – order not to do something (2) Special performance – only available in unique situations; real estate contracts; when money damage remedy won’t deliver justice c) Elements of the binding agreement i) Requirements of an offer – offer and acceptance (1) Manifestation of intent to contract (2) Reasonably definite indication of what offeror and offeree will do (3) Requirements for communication ii) Termination of offer (1) By parties (a) Revocation – revoke before acceptance; communicate to the person; no contract yet, so no obligation until is accepted except merchant who makes firm offer to be held (b) Rejection or counteroffer – offered party (c) Lapse of time – reasonable period of time (2) By operation of law (a) Death or adjudication of insanity (b) Destruction of subject matter (c) Intervening illegality – gov’t outlaws something while offer out there iii) Acceptance (1) Requirements (a) Unconditional – just as it’s made (b) Unequivocal – need clear acceptance; silence is not an acceptance unless offeree indicates or past dealings indicate (c) Communication (i) Differences between requirements for effectiveness of offer (received) , revocation (received) , rejection (received) and acceptance (sent) (ii) Mailbox rule and exceptions from rule (iii) Shrink wrap ( bound by contract inside if you have reasonable time to return/ reject) / click wrap (clicking means agreeing) / browse wrap (terms & conditions are variable you are bound, but not if hidden) iv) Consideration
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(1) Requirements (a) Exchange of promise for promise or promise for action (b) Inducement – mutual inducement: each item of consideration must induce the other item of consideration (c) Legal detriment – doing something you don’t otherwise have to do; don’t do something you otherwise have to do (i) Preexisting Obligation Rule and exceptions – your job so you have to do it anyway 1. Unforeseen Difficulties (Unanticipated Circumstances) Exception: Promise of additional payment for same service enforceable if truly result of unanticipated circumstances and additional amount is fair and equitable 2. Note: increased costs, unexpected labor difficulties, loss of expected materials generally will not satisfy the "unforeseen difficulties" exception (2) Adequacy of Consideration
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  • Spring '19
  • The Land, N. H. Supreme Court, Defendant McGee

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