Exam3Review - 35 questions I J K L M N O P R I – Intro to...

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Unformatted text preview: 35 questions I J K L M N O P R I – Intro to Contracts – Chapter 9 • Nature of contracts •Not every promise is legally enforceable •But when a set of promises has the status of contract, a person injured by a breach of that contract is entitled to call on the government (courts) to force the breaching party to honor the contract Contracting lets us create a type of private law that governs our relations with others They faciliate the planning that is necessary in a modern, industrialized society. How could we make loans unless agreements were backed by the force of the law? •Contract law is ancient law, but has evolved to reflect social change During 20 th century, dramatic increase in government regulation of private contractual relationships. Emergence of large business organizations after the Civil War produced disparities of bargaining power in many contract situations. Ancient law Contract law – occurring back in the middle ages back when Vikings were going back in their ships and people were trading with each other across countries Law merchant – businesses, developed their own commercial courts Out of these customary, they weren’t really laws at the time. This is how they started interacting, if someone broke the law they went to the merchant court. They adopted for contract law what the merchants were already doing. US contract law Increasing amount of govt. law (used to be like common law) Lawyer has incentive • Basic elements of a contract – over the years, the law has developed a number of requirements that a set of promises must meet before they are treated as a contract: •1) AGREEMENT – voluntary agreement = offer + acceptance •2) CONSIDERATION – must be consideration to support each party’s promise •3) CAPACITY – contract must be between parties who have capacity to contract •4) LAWFUL OBJECT - objective and performance of contract must be legal Separate chapters in the book Agreement – offer and the acceptance Consideration – distinct legal meaning Capacity – deals with the parties (people under 18 don’t have the capacity to contract) Lawful object – noncompete agreement has lawful object • Basic contract types 1 Bilateral and Unilateral – Unilateral –one party makes a promise. Perks Café issues frequent buyer cards to its customers, stampls the cards each time a customer buys a cup of coffee. Perks promises to give any customer a free cup of coffee if the customer buys 10 cups of coffee and has frequent buyer card 10 times. Unilateral contract only created with a customer if and when customer buys 10 cups of coffee and has his card stamped 10 times. Bilateral – both parties exchange promises and the contract is formed as soon as the promises are exchanged. Ex. Perks Café promises to pay Mall $1000 a month if Mall promises to lease kiosk to Perks for holiday season....
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This note was uploaded on 02/02/2012 for the course BMGT 380 taught by Professor Mark during the Spring '08 term at Maryland.

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Exam3Review - 35 questions I J K L M N O P R I – Intro to...

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