Contract Law - I. Contract Law a. Legal Issues i. When is...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
I. Contract Law a. Legal Issues i. When is contract enforced? ii. What are the remedies for breach? b. Incomplete: i. There is no way for a contract to have all possible contingencies covered within the language of the contract. 1. Existence of unknown unknowns. a. Known unknown: i. A forest fire destroys a forest, increasing lumber prices b. Unknown unknowns i. A 50ft sea turtle-dragon pops out of the ground and goes on a rampage 2. Costliness of accounting for extremely unlikely events a. Very costly to account for a meteorite hitting the house II. Contract Terms: a. Meeting of the Minds i. Requirement by the courts: 1. Existence of an offer 2. Acceptance of offer 3. Consideration a. Exchange of things of value ii. Promise: 1. Does not constitute a mutual agreement b. Reasons for invalidation: i. Mental incapacity or incompetence ii. Duress 1. Being pressured to make an agreement 2. Alaskan Packers Association v. Domenico (1904) a. Crew told captain they demanded higher wage than agreed in writing b. Captain paid original wage, crew sued. Court: Captain did not have the freedom to renegotiate contract, no new consideration being given, existence of pre-existing duty c. Monopoly power of crew to put captain under duress 3. Goeble v. Linn (1882) a. Economic conditions had changed: b. Opportunity cost of providing ice to Brewer c. Court: New price of ice be treated as a new contract d. Goeble, the brewer, did not suffer from an increase in monopoly power, was free to find another ice provider
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
iii. Mistake 1. Mutual mistake
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/19/2008 for the course ECON 4450 taught by Professor Turnbull during the Spring '08 term at Georgia State.

Page1 / 5

Contract Law - I. Contract Law a. Legal Issues i. When is...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online