Business Law

Front 1

Objective Theory of Contracts

Back 1

Courts judge each parties intention to enter into a contract.

Front 2

Contract Elements (x4)

Back 2

1 Agreement (Offer & Acceptance)

2 Consideration

3 Capacity

4 Legality

Front 3

Bilateral

vs

Unilateral

Back 3

Promise for a promise

Promise for an act

Front 4

Executed

vs

Executory

Back 4

Completed (past tense)

Incomplete

Front 5

What is the purpose of Quasi Contracts?

Back 5

To avoid one party from being unjustly enriched

Front 6

When can a Quasi Contract not exist

Back 6

When there is an actual contract present

Front 7

Interpretation: Plain Meaning Rule

Back 7

When a contracts writing is clear, a court will enforce it according to it's terms.

If it is ambiguous, courts look at extrinsic evidence & disfavor the drafter of the contract.

Front 8

Contract Agreement: Offer: Elements (x3)

Back 8

1. Serious Intent

2. Certain Terms

3. Communicated to the offeree

Front 9

Contracts: Agreements:
Offer: Intent

Examples lacking "serious intent" (x3)

Back 9

1. Opinion

2. Future Intent

3. Preliminary Negotiations

Front 10

Agreements to Agree

vs

Preliminary Negotiations

Back 10

If the essential terms have been decided on and agreed upon -> that is an Agreement to Agree.

Binding in Court

Front 11

Example of a irrevocable offer?

Back 11

Option Contracts.

"Give me the option to purchase in the next 60 days"

Front 12

The Acceptance of the Offer must mimic the offer in regards to terms. If not, a new contract is drafted.

Back 12

Mirror Image Rule

Front 13

Mailbox Rule

Back 13

Authorized Communication: Acceptance occurs went sent.

Un-Authorized Communication: Acceptance occurs when received.

Front 14

Rule of Online Offers (x2)

Back 14

1. Clear Terms

2. Available

Front 15

Open the package of goods, and inside the box contains terms and conditions that you've implicitly accepted because you chose to open the box

Back 15

Shrink Wrap Agreements

Front 16

E Sign Act

Back 16

Allows States to enact alternative requirements

instead of Uniform Electronic Transactions Act

Front 17

Contract Consideration Elements (x2)

Back 17

1. Something of Value

2. Not a Gift. (Bargained for Exchange)

Front 18

When consideration is challenged by a court?

Back 18

When consideration is grossly inadequate.

Front 19

Examples that lack Consideration (x3)

Back 19

1. Pre-existing Duty

2. Past Consideration

3. Illusory Promises

"I'll give you $1, if i feel like it"

Front 20

Contract that lacks Consideration:

Settlement Options: (x3)

Back 20

1. Accord & Sanctification

"Agree on Smaller Amount"

2. Liability Release

3. Covenant not to Sue.

Front 21

Accord

vs

Satisfaction

Back 21

Accord = Agreement

Satisfaction = Payment

Front 22

Release

vs

Covenant not to sue

Back 22

For covenant not to sue:

"Pay me $5K for damages, and I won't sue you"

Front 23

Liquidated Debts

vs

Unliquidated Debts

Back 23

Liquidated = Determined

Unliquidated = Un Determined

Front 24

When there is no consideration, parties might have damages.

"Quasi Consideration"

Back 24

Promissory Estoppel

Front 25

Contracts:

Examples that Lack Capacity: (x3)

Back 25

1. Minors

2. Intoxication

3. Mental incompetence

Front 26

When minors attempt to get out of a contract

Back 26

Dissaffirmance.

Front 27

What is the age limit for minors to enter into contracts and disaffirm

Back 27

Eighteen and a reasonable age over.

Front 28

Minors can disaffirm, unless... (x2)

Back 28

1. They lied about their age.

2. Contract was for Necessities

Front 29

Contract: Capacity:

Intoxication

Defence

Back 29

Prove that you were unable to understand the legal consequences at the time.

Front 30

Contract: Capacity:

Mental Incompetence:

When is Incompetence determined?

Back 30

At the time the contract was signed

Front 31

Conservator

vs

Guardian

Back 31

Financial Information

Well-being

Front 32

Contract Legality:

Licencing

When a party lacks a licence, when is it

enforceable and unenforceable

Back 32

Enforceable - Licence is for governmental revenue

Unenforceable when the purpose of the licence is to protect the public from malpractice

Front 33

Contract:

A clause written in, that releases a party from liability regardless of who is at fault

Back 33

Exculpatory Clause

Front 34

Illegal Contracts might be enforceable when, (x2)

Back 34

1. Justifiable Ignorance of the Illegality (trucker)

2. Party is a Protected class (Airline Attendants)
The Protected Class Individual has the right to enforce it, although illegal, and recover the proceeds from it as well.

Front 35

Illegal Contract Examples: (x3)

Back 35

1. Fraud - misrepresentation

2. Duress - illegal forcing

3. Undue Influence - dominant influence

Front 36

Unconscionable contracts

Back 36

Gross unfairness,

Usually just revise the terms.

Front 37

ILLEGALITY

Substantive unconscionability

vs

Procedural unconscionability

Back 37

Substantive: Occurs when contracts are oppressive or overly harsh. "Substance"

Procedural: The Procedure regarding signing the contract was unfair to the party. Example: Lack of opportunity to read, inconspicuous print, bad language.

Front 38

Mistakes of Fact

vs

Mistakes of Quality

Back 38

If a Mistake of Fact occurs, it is possible to cancel the contract,

If a Mistake of Quality occurs, it is enforecable

Front 39

Contracts:

Fraudulent MIsrepresentation: Elements (x4)

Back 39

1. Misrepresentation

2. Intent to Deceive

3. Reliance on the deception

4. Damages

Front 40

Contractual Fraud:

Misrepresentation exception

Back 40

An Opinon.

Unless the opinion comes from a qualified person (dance instructor example)

Front 41

Contractual Fraud,

When there is no intent, damages cannot be awarded, unless...

Back 41

There was an

Innocent / Accidental Misrepresentation

Front 42

Contracts:

When one party dominates another to the point that one party is determined to not have free-will

Back 42

Undue Influence

Front 43

Contracts:

When one party forces another party to sign through the use of blackmail / extortion

Back 43

Duress

Front 44

Duress

vs

Undue Influence

Back 44

Duress: Active Threat

Undue Influence: Positional

Front 45

Bilateral Mistakes of Fact:

Back 45

Both parties can rescind or "cancel" the contract

Front 46

"Rescission of a Contract" Meaning

Back 46

Cancel the Contract

Front 47

Unilateral Contract: Mistake of Fact

Enforceable. Exceptions (x2)

Back 47

1. If the other party knows a mistake has been made and wants to take advantage of the other party.

2. Error was due to a substantial mathematical mistake.

Front 48

"Take it or Leave it" Contract

Back 48

Adhesion Contract

or

Standard Form Contracts

Front 49

Strict Liability Requirements (x6)

Back 49

1. Defective @ the time of selling

2. Business of Selling

3. Unreasonably Dangerous

4. Improper Use

5. Proximate Cause

6. Item has not changed significantly

Front 50

Defenses to Strict Liability (x6)

Back 50

1. Assumption of Risk

2. Product Misuse

3. Comparative Negligence

4. Common Known Dangers

5. Knowledgeable Users

6. Statute of Limitations

Front 51

Negligence per se

Back 51

When a statute or law is broken ->

Also causes damages to other person

"Criminal Negligence"

Front 52

Business Torts:

When "Party C" knows of a contract and interferes with it

Back 52

"Wrongful Interference with a contractual obligation"

Front 53

Absolute Defense to Slander & Libel

Back 53

Truth

Front 54

Purpose of Tort Law

Back 54

Compensate those for damages

Like "Law of Equity"

Front 55

The government must give a person a proper notice and an opportunity to be heard

Back 55

Due Process (Procedural)

Front 56

When the government creates legislation, they must further a governmental objective

Back 56

Due Process (Substantive)

Front 57

The Federal Government gives states the right to protect the well-being of it's citizens

Back 57

State Police Power

Front 58

Establishes the Constitution as the "Supreme Law of the land"

Back 58

Supremacy Clause

Front 59

When the defendant doesn't show up and the Plaintiff is awarded judgement on the case

Back 59

Default Judgement

Front 60

To properly bring a legal case,

You must have "a stake in the matter"

Back 60

Standing to sue

Front 61

To get your case reviewed by the Supreme Court, you get a...

Back 61

Writ of cerceari

Front 62

Writ of Cerceari

Back 62

To get your case heard by the Supreme Court

Front 63

Out of all the ADR (Alternative Dispute Resolution) Methods, Which one/s are binding?

Back 63

Just Arbitration.

Front 64

Example in which Arbitration is not binding?

Back 64

If it causes an undue burden on a party.

For example, the case could be heard in San Francisco. Lame!

Front 65

Promissory Estoppel

Back 65

Enforceable Contract

No Consideration

It would be unfair otherwise

Front 66

Negotiated Debts

vs

UnNegotiated Debts

Back 66

Liquidated

Unliquidated

Front 67

When there is an agreement to pay less than original amount.

Back 67

Accord and Satisfaction

Front 68

Consideration cannot be a gift.

Back 68

Bargained for Exchange

Front 69

1. Serious Intent

2. Reasonably Certain Terms

3. Communicated to other party

Back 69

Elements of Offer

Front 70

Libel and Slander are examples of

Back 70

Defamation