1/15/14 - 1
Contract a promise or an agreement that the law recognizes and will provide a remedy for its breach.
Not all promise or agreements are contracts
Only the promises or agreements that are recognized by the law, that the law will enfor
4/23/14 - 1
All endorsements fall into three categories in which there is two options for each category
1. General (blank) or special
a. A general endorsement is an endorsement that turns an order instrument into a bearer instrument or keeps a
1a. Not negotiable. It is conditional upon the person being alive.
1b. It is negotiable. This extra language would be considered to be words of reference. It does
not impose a condition. It does not destroy the negotiability of a contr
Chapter 25 Homework
Problem 1) These are words of reference. These words do not destroy the negotiability of the
instrument. Starting with Chicago Risk, time value of money, and profit. Kay has acquired
good rights. But there is no end
4/30/14 - 1
Chapter 26 Homework
Question 4. What would you call this phrase this note is secured by certificate No. 13 for 100
shares of stock of Brookside Mills, Inc. words of reference. Does not effect it. He thinks the
note is worth 12,000. If
4/2/14 - 1
1. Money is good
2. Money is good for you individually, and for the society
You want to live in a more prosperous society
If you are rich, you want to live where rich people live
The better off your neighbors are, the better off you
4/2/14 - 1
Legal Remedies Involve money; damages.
Equitable Remedies Something other than money.
THE LAW PREFERS LEGAL REMEDIES OVER EQUITABLE REMEDIES.
There are five types of legal remedies (damages):
1. Compensatory Damages to compensate the non-breach
Chapter 15 Homework
Question 2 Not enforceable. This is because if the contract is full performance in a year, need writing. It is capable
of being fully performed within one year? No. The time the contract is made and when it is accom
2/26/14 - 1
Statute of frauds
Designed to prevent fraud
Must have writing to satisfy the statute of frauds
Writing or document
Contains essential terms of the agreement
To the party to be charged
The fifth requirement applies to only SIX TYPES OF CONTRACT
2/19/14 - 1
Legality of Purpose
Capacity to Contract (Chapter 14)
Capacity of Contract The parties of the contract have the legal ability, the capacity to enter into the contract.
Some groups lack
2/19/14 - 1
An oral contract is just as valid as a written contract. Oral contracts were valid. Some people lie and the jury would
believe them. Some people would tell the truth but the jury would think they were lying.
In 1667, English Parliament stepped
2/12/14 - 1
a. Bargained for exchange
b. Legal detriment
If I already did what I was supposed to do, then I did not incur a legal detriment.
If there is new consideration, you will incur a legal detriment.
At common law,
2/5/14 - 1
Mutual mistake results in a void contract.
Higher risk has a lower price. The less you will pay.
The less risky, the more you pay.
CHAPTER ELEVEN HOMEWORK
Page 220, Question 1
Barry claimed duress because she pointed her finger at him.
1. Mutual Assent
a.i. Present contractual intent
a.ii. Certainty and definiteness of terms
a.iii. Must be communicated
The purpose of the law is to meet the needs of society and the expectations of the parties.
4/30/14 - 1
Exception Provides that the original party to the transaction (or a coconspirator to the original party to the
transaction) cannot wash (transfer) an instrument through a holder in due course and thereby improve his
4/9/14 - 1
The law of negotiable instruments is a variation of the law of assignments.
How is this so?
The assignee steps into the shoes of the assignor
Under the law of negotiable instruments, if three conditions are met, the special assignee will acquir