EXAM 1 - Chapter 11 Contracts Nature and Terminology Elements of a Contract o Agreement(Offer and Acceptance o Consideration(Bargain for exchange o

EXAM 1 - Chapter 11 Contracts Nature and Terminology...

This preview shows page 1 - 3 out of 15 pages.

Chapter 11: Contracts – Nature and TerminologyElements of a ContractoAgreement (Offer and Acceptance)oConsideration (Bargain for exchange)oContractual CapacityoLegalityContract Enforceability Quasi (“sort of”) Contracts implied in law.oEquitable remedy created by courts, and imposed on parties in the interest of fairness and justice.àoQuantum Meruit("As much as he deserved," the actual value of services performed)oLimitations on Quasi-Contractual Remedy:Enriched party is not held liable in certain situations dealing with benefit is conferred unnecessarily, negligently or by misconduct.There cannot be an actual contract and a quasi contract at same timeoEx. Ambulance being called for an unconscious patient but payment must still happen. These patients cannot argue that they did not “agree”Interpretation of Contracts Put in words exactly what you mean (Don’t let courts interpret it)Chapter 12: Contracts – Agreement in Traditional and E-ContractsAgreement = Offer and Acceptance
Background image
Agreement: OfferoRequirements of an offerOfferor’s serious intentionDefiniteness of termsCommunication to OffereeoSoprano Ex. NJ lawyer helped give ideas for show so Mr. Chase said “I’ll take care of you if show is successful,” but when show was a hit, he didn’t care of himCourt found that terms were definite so it was an invalid contractoOfferor’s Serious Intention: Contract is judged by what a reasonable person in the Offeree’s position would conclude about the offerCase 12.1 Owner of a farm allegedly agreed to a buyer of farm, but then backed out of deal (and happened while drinking)Agreement was in writing and had two drafts; went and got wife and the wife signed (joint owners)Title was discussed (pretty serious stuff)oIntent may be lackingExpressions of Opinion, Statements of Future Intent, Preliminary Negotiations, Ads, Auctions, Agreements to Agree, Preliminary AgreementsoDefinite of Terms: Identification of the parties, Object or subject matter of the contract, Consideration to be paid, Time of payment/delivery/performanceOffer requires specific terms to make the contract definiteoCommunication: Offeree’s knowledge of the offer (directly by the offeror or use of agents)Revocation of the Offer by the Offeror: Offer can be withdrawn anytime before Offeree accepts the offer.Effective when the Offeree or Offeree’s agent receivesit.Irrevocable Offers Courts are generally unwilling to allow revocation when offeree has changed position based on justifiable reliance on the offer.Rejection of the Offer by the Offeree: Rejection by the Offeree (expressed or implied) terminates the offer.
Background image
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture