1. GENERAL PRINCIPLES- An agreement is illegal either when its formation or
performance is a crime or a tort or when it is contrary to public policy or unconscionable.
a. Effect of Illegality- If the illegal agreement has not been performed; neither
Chapter 14 Reading Notes
1. CONTRACTUAL CAPACITY
a. Contractual Capacity Defined- Contractual capacity is the ability to
understand that a contract is being made and to understand its general
meaning. However, the fact that a person does not understand th
Chapter 20 Reading Notes
A breach is the failure to act or perform in the manner called for by the contract.
Anticipatory Breach- When the contract calls for performance, a party may make it
clear before the time for performance arrives that t
Definitions and Distinctions- Agency is a relationship based on an express or implied
agreement by the agent, is authorized to act under the control of and for another, the
principal, in negotiating and making contracts with t
1. Action of Authorized Agent of Disclosed Principal-If an agent makes a
contract with a third person on behalf of a disclosed principal and
has proper authority to do so and if the c
Classification of Conditions
a. Condition- When the occurrence or nonoccurrence of an event, as
expressed in a contract, affects the duty of a party to the contract to
b. Examples: if, provided that, when, after, as soon as, subject to, and on
Chapter 18 (page 362-265)
THIRD-PARTY BENEFICIARY CONTRACTS-Generally, only the
parties to a contract may sue on it. However, in some cases a third
person who is not a party to the contract may sue on the contract.
a. Definition- When a contract is
1. General Principals- One of the elements needed to make an agreement binding is
a. Consideration- is what each party to a contract gives up to the other in making
BARGAINED-FOR EXCHANGE. Consideration is the
1. STATUTE OF FRAUDS
a. Validity of Oral Contracts- professionals should be more fully aware that their
oral communications, including telephone conversations and dinner or breakfast
discussions, may be deemed legally enforceable contracts.
a.i. Certain c
1. REQUIREMENTS OF AN OFFER- An offer expresses the willingness of the offeror
to enter into a contractual agreement regarding a particular subject. It is a promise
that is conditional upon an act, a forbearance (a refraining from doing something one
1. Definition of a contract
a. A contract is a legally binding agreement. By one definition, a contract is a
promise or a set of promises for the breach of which the law gives a remedy,
or the performance of which the law in some way recognizes as a duty.
1. Nature of the Administrative Agency
a. An administrative agency is a government body charged with administering
and implementing legislation
b. Agencies exist on the federal and state level
c. Purpose of administrative agencies
Chapter 15 Outline
Chapter 15 - Consideration
1. Consideration: Bargained-for exchange between parties to a K; Value given for
1.a. Value = Money, services, property, or forbearance of legal right.
Ex: B offers K $100 for her boots.
Chapter 16 Outline
Chapter 16 - Legality and Public Policy
1. G/R: Agreement is illegal when :
1.a. Its formation or performance is a crime
1.b. Its formation or performance is a tort (civil wrong)
1.c. It is contrary to public policy
1.d. It is uncons
Chapter 17 Outline
Chapter 17 - Writing, Electronic Forms, & Interpretation of Contracts
1. Statute of Frauds
1.a. G/R: Unless noted by law, a K may be oral or written.
1.b. Statute that covers certain contracts which must be in writing to be
Chapter 18 Outline
Chapter 18 - 3rd Persons & Contracts
1. 3rd Party Beneficiary Contracts
1.a. G/R: Only the parties to a K may sue.
1.b. Caveat: When a K is intended to benefit a 3rd party, such person is an
intended beneficiary & can bring suit to e
Chapter 13 Outline
Chapter 13 Formation of Contracts: Offer & Acceptance
1. 3 Requirements for a contract to be valid:
2.a. Willingness to enter into a bargain in such a way that another person
Chapter 6 Outline
I. Chapter 6: Administrative Agencies
a. Administrative Agency Government body charged with administering and
a.1) Examples: FAA, FTC, CIA, EPA
a.2) Agencies combine legislative, executive and judicial powers wi
Chapter 4 Outline
I. Chapter 4: The Constitution as the Foundation of the Legal Environment
a. Federal system: Power divided between a federal government to address national
concerns, and state governments to address state/ local concerns.
Chapter 2 Outline
I. Chapter 2: The Court System & Dispute Resolution
a.1) Court Hears & determines disputes
a.2) Jurisdiction Power of a court to hear & decide a case.
Personal Parties must have some minimum contacts
in the jurisdic
Chapter 1 Outline
Chapter 1 The Nature & Sources of Law
a. Why do we have laws?
Order in society
Establish a pattern of rules to abide by
b. Right vs. Duty
Right: Legal capacity to require another person to perform
Chapter 14 Outline
Chapter 14 Capacity & Assent
1. Contractual Capacity Ability to understand you are entering into a K, and
what the K means.
1.a. G/R: Everyone is presumed to have contractual capacity unless it is
proven that mental capacity is lacki