BUS206-Final (1) - Business Law I Review Sheet Final Exam...

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

View Full Document Right Arrow Icon
Business Law I Review Sheet Final Exam – Spring 2011 1. Enforceable contracts or agreements ( promises)- Enforceable contract-a valid contact that can be enforced because there are no legal defenses against it. Valid but defective contract which cannot be enforced by the courts. A. Promises Enforceable Without Consideration a. Promises to pay debts barred by a Statute of Limitations. b. Detrimental reliance and Promissory Estoppel: 1. There must be a clear and definite promise 2. The promisee must justifiably rely on the promise 3. The reliance normally must be of a substantial and definite character 4. Justice will be better served by enforcement of the promise c. Charitable subscriptions – if a charitable, educational, or religious institution receives a pledge and relies upon that pledge to their detriment, it may be enforceable. 2. Objective theory of contracts- In determining whether a contract has been formed, the element of interest is of prime importance. In contract law, intent is determined by what is called the objective theory of contracts, not by the personal or subjective intent, or belief, of a party. The theory is that a party’s intention to enter into a legally binding agreement, or contract, is judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. THE OBJECTIVE THEORY OF CONTRACTS a. Intent is determined by objective standards, not by the personal or subjective intent, or belief, of a party. b. Objective facts are determined by the reasonable person standard, rather than individual’s own secret, subjective intentions. c. Objective facts include: 1. What the party said when entering the contract. 2. How the party acted or appeared 3. The circumstances surrounding the transaction (see the example in the text concerning Jaffe’s car). 3. Bilateral contract- 2. Bilateral contract (A promise for a promise) If the offeree can accept simply by promising to perform, the contract is a bilateral contract. Thus, a bilateral contract is a “promise for a promise.” No
Background image of page 1

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

View Full DocumentRight Arrow Icon
performance, such as payment of funds or delivery of goods, need tale place for a bilateral contract to be formed. The contract comes into existence at the moment the promises are exchanged. For example, Huck offers to buy Jack’s bike for $200. Huck tells Jack that he will give him the funds for the bike next Thursday, when he gets paid. Jack accepts Huck’s offer and promise to give him the bike when he pays him on Thursday. Huck and Jack have formed a bilateral contact. u Bilateral versus Unilateral Contracts i. All ks have at least two parties. ii. The offeror makes the offer. iii. The offeree is the party to whom the offer is made. iv.
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 07/07/2011 for the course INT 335 taught by Professor Fici during the Spring '11 term at Southern New Hampshire University.

Page1 / 13

BUS206-Final (1) - Business Law I Review Sheet Final Exam...

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