Business 206 Business Law

Front 1

5 elements of a contract

Back 1

1. Offer

2. Acceptance

3. Considerations

4. Legal Capacity

5. Legality

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Definition of a contract

Back 2

A promise or a set of promises, for the beach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. "An agreement that can be enforced in court"

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Bilateral Contract

Back 3

A promise for a promise. The offeree can simply accept by promising to perform. Man-"I will pay you $200 for your cell phone when I get paid on Friday." Woman- "Ok."

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Unilateral Contract

Back 4

A promise for an act. It becomes a contract once the act has been committed. (Julie plays the lottery. All she has to do to fulfill the contract is to play by the rules and win.)

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Implied in fact

Back 5

The conduct (not words) imply the contract. It means that if a job is completed, there was a tacit understanding. (i.e. a company paves your driveway by accident. You see them do it but do nothing to stop them. You would be liable to pay)

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Implied in Law

Back 6

A Quasi-contract. Designed to create equity between parties when there is no real contract established. (i.e. A paving company accidentally paves your driveway instead of your neighbors. They can try and recoup their losses, but not any profits)

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Promissory Estoppel

Back 7

is the legal principle that a promise is enforceable by law when the promisor (person making the promise) makes a promise to the promisee (person being promised) who relies on it to his or her detriment.

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Liquidated Damages

Back 8

damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., Vanderbilt v DiNardo)

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Statute of frauds

Back 9

refers to the requirement that certain kinds of contracts be memorialized in a writing, signed by the party to be charged, with sufficient content to evidence the contract. Deliberate or intentional (purposeful) misrepresentation of information. “intentional act” To do something you are not legally allowed to do. Designed to limit the possibility of fraud being perpetrated. MUST BE IN WRITING

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Statute of limitations

Back 10

is a time limit in which a person has to file a claim. If the time limit expires, the individual who wishes to bring forth a claim is barred from doing so. In a criminal context, a statute of limitations is the time limit in which the prosecutor must file charges.

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Civil Law

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1. An alleged wrong brought against a person or an entity by another person or entity.

2. Plaintiff v Defendant

3. Preponderance of the evidence (more likely than not)

4. Counciling/restitution, no jail time

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Criminal Law

Back 12

1.An alleged wrong brought against a person or entity by the state.

2. Prosecutor v Defendant

3. Incarceration possible

4. Reasonable doubt, innocent until proven guilty

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4 sources of American Law

Back 13

1. US Constitution

2. Statutory Law

3. Regulatory Law

4. Case Law/Common Law

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3 Branches of Government

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1. Executive

2. Judicial

3. Legislative

Front 15

2 main methods of resolving a case in an ADR (Alternative Dispute Resolution)

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1.Mediation

2. Arbitration

Front 16

Discuss Mediation

Back 16

1.Can be voluntary or court ordered

2. Trial is put on pause pending the outcome

3. Mediator's function is to facilitate negotiation

4. Mediation ends when a settlement is reached or the parties are deadlocked.

5. Generally enforceable, requiring both parties to make a good-faith effort to resolve the dispute.

Front 17

Discuss Arbitration

Back 17

1. Replaces a trial.

2. May be one arbitrator or an entire panel

3. Arbitrator's job is to resolve the matter

4. Arbitration ends when the decision is handed down.

5. Generally enforceable, requiring both parties to accept the arbitrator's decision as if it were coming from a judge.

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Interrogatories

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Can only be extended to the other party. It is a series of questions administered under oath.

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Depositions

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Oral interview. Can be extended to anyone involved in the trial. You are under oath.

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Equitable relief

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No amount of money awarded to the plaintiff will remedy the situation. It is to stop a specific action. (Temporary Restraining Order-10 days)

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Legal Remedy

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Requiring that the plaintiff be awarded a specific amount of money or property to remedy the breach.

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4 Elements needed to establish a case in negligence

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1. Duty of care

2. Breach of duty

3. Causation

4. Damages

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Comparative Negligence

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a partial legal defense that reduces the amount of damages that a plaintiff can recover in a negligence-based claim based upon the degree to which the plaintiff's own negligence contributed to cause the injury.

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Contributory Negligence

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a defense to a claim based on negligence, an action in tort. This principle is relevant to the determination of liability and is applicable when plaintiffs/claimants have, through their own negligence, contributed to the harm they suffered.

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"Time being of the essence"

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Exception to the statute of frauds. Meaning that there is a "drop dead date"- a timeframe wherein the contract is no longer enforceable after that date.

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Punative

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To punish or deter a wrongdoer. Generally not awarded for breach of contract. Because punitive damages are designed to punish a wrongdoer and set an example to deter conduct in the future, they have no legitimate place in contract law.

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Nominal

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(to recognize wrongdoing when no monetary loss is shown). When no actual financial loss results from a breach of contract and only a technical injury is involved, the court may award nominal damages to the innocent party. Awards of nominal damages are often small, such as $1, but they do establish the defendant acted wrongfully.

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List Equitable Remedies

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1. Restitution

2. Rescission

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Rescission

Back 29

Essentially an action to undo, or terminate, a contract-to return the contracting parties to the positions they previously occupied prior to the transaction. When fraud, a mistake, duress, undue influence, misrepresentation, or lack of capacity to contract is present, unilateral rescission is available. Rescission may also be available by statute. The failure of one party to rescind the contract. The rescinding party must give prompt notice to the breaching party.

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Restitution

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Generally, to rescind a contract, both parties must make restitution to each other by returning goods, property, or funds previously conveyed. If the property or good can be returned, they must be. Essentially, restitution involves the plaintiff’s recapture of a benefit conferred on the defendant that has unjustly enriched her or him.

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Specific Performance

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The equitable remedy of specific performance calls for the performance of the act promised in the contract.