bus law test 2 outlines

Bus law test 2 - Chapter 8 I Contract Law a Sources of contract law i Common law contracts relating to services real estate employment and

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Chapter 8 I. Contract Law a. Sources of contract law i. Common law - contracts relating to services, real estate, employment, and insurance, taken contract by contract ii. UCC - contracts for the sale and lease of goods, Sets up a default contract, 1. Ex: written rules on how goods move through commerce b. Function of contracts i. Designed to provide stability and predictability for both buyers and sellers in the marketplace ii. Necessary to ensure compliance with a promise or to entitle the innocent party some form of relief iii. Contact- an agreement that can be enforced in court; formed by two ore more competent parties who agree, for consideration to perform or to refrain from performing some legal act now or in the future c. Objective theory of contracts i. What would a reasonable person think if they read it? ii. A party’s intention to enter a contract is judge by outward, objective facts as interpreted by a reasonable person rather than by the party’s on secret, subjective intentions d. Freedom of contracts i. Everyone’s ability to enter freely into contractual agreements e. Freedom from contracts i. Certain contracts may not be enforceable if they are contrary to public policy, fairness, and justice (illegal bargains, unfair contracts, etc) II. Elements of Contract Law a. Requirements of a valid contract i. Agreement (offer AND acceptance) ii. Consideration (something of value received or promised to convince person to make a deal) iii. Contractual capacity (competent parties) iv. Legality (accomplish a legal goal that is not against public policy) b. Defenses to enforceability of a contract i. Genuineness of assent - not enforceable if contract is result of fraud, mistake, or duress ii. Form- must be in correct form the law requires (ex: written in some cases) III. Types of Contracts a. Bilatera l (promise for promise) i. An exchange of promises, you seek someone out and negotiate ii. Ex: one person agrees to buy another person’s automobile for a specified price iii. Comes into existence the moment promises are exchanged b. Unilateral i. Offer is phased so that the offeree can accept only by completing the contract performance, a “promise for an act” ii. Ex: contests, lotteries, and other competitions, “I’ll give you 2$ to whoever gets me a coke” c. Revocation of offers for unilateral contracts i. Offers are revocable until accepted ii. Once performance has been substantially undertaken the offeror cannot revoke the
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offer d. Formal vs. Informal contracts i. Formal- require a special form or method of creation to be enforceable ii. Informal - (simple contracts) include all other contracts, no special form required e. Express vs. Implied contracts i. Express- stated in words, oral or written ii. Implied - conduct of the parties creates the terms of the contract, risky because it is questionable whether it exists or not f. Contract performance i. Executed contract - has been completely performed by both parties ii. Executory contract
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This note was uploaded on 02/07/2011 for the course ACCT 324 taught by Professor Eppink during the Spring '10 term at South Carolina.

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Bus law test 2 - Chapter 8 I Contract Law a Sources of contract law i Common law contracts relating to services real estate employment and

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