CONTRACTS I - CONTRACTS I The Legal Environment of Business...

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Unformatted text preview: CONTRACTS I The Legal Environment of Business SDSU Definition “Contract” – a legally enforceable exchange of promises or an exchange of a promise for an act. The Legal Environment of Business SDSU Classification of Contracts Express – written or oral Implied – established by conduct (course of dealing) Unilateral – promise for an act Bilateral – promise for a promise Void/Voidable Executed/Executory Quasi The Legal Environment of Business SDSU Elements of a Contract Offer [Chang v. First Colonial Savings and Satellite Entertainment v. Keaton] Termination of Offer Acceptance [Pamela Anderson] Consideration Promissory Estoppel Liquidated v. Unliquidated Debts The Legal Environment of Business SDSU The Legal Environment of Business SDSU UCC 2-205 “Firm Offers” An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable for lack of consideration during the time stated or if no time is stated for a reasonable time, but in no event shall such period of irrevocability exceed three months… The Legal Environment of Business SDSU Elements of Contracts II Genuine Consent Fraud [Stambovsky] Undue Influence Duress [Odorizzi] Mistake – bilateral and unilateral Competency Minors [Simmons v. Parkette and Mitchell v. Mitchell] Insanity Intoxication The Legal Environment of Business SDSU Elements of Contract III Legal Object – statutory/case [Nalco Chem. and Moore v. Midwest Distribution] The Legal Environment of Business SDSU Contracts that Must be in Writing Sale of Land of an Interest in Land (and leases for longer than 1 year) Contracts to Answer for the Debt of Another Contracts NOT performable in 1 year Sale of Goods $500 or more. The Legal Environment of Business SDSU UCC 2-201(2) Between merchants if within a reasonable time a writing in confirmation of the contract is received and the party receiving it has reason to know of its contents, it satisfies the requirements of this section [Statute of Frauds] against such party unless written notice of objection to its contents is given within 10 days after it is received. The Legal Environment of Business SDSU Parol Evidence Rule If written contract is complete on its face, then oral agreement made at or prior to written that varies, alters or contracts the written is not allowed into evidence. Exceptions: Substantial modification To clear up an ambiguity To prove fraud, duress and undue influence Collateral matter not germane to written agreement. The Legal Environment of Business SDSU Beneficiaries Donee Creditor The Legal Environment of Business SDSU Assignments Recourse/Non-Recourse Prohibitions For security purposes or absolute The Legal Environment of Business SDSU ...
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This note was uploaded on 10/15/2008 for the course FIN 240 taught by Professor - during the Spring '08 term at San Diego State.

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