Contract Elements
What are the 4 basic requirements of a contract?
What is agreement, legal consideration, contractual capacity, and legality
Emma agrees to pay Jake $200 if he mows her lawn every Saturday for the next month. Jake agrees and completes the work. What are the two elements that make this a valid consideration?
What is Legally sufficient value and a bargained-for exchange.
What are the five elements of an equitable remedy?
1. benefit conferred
2. expectation of payment
3. benefit received
4. opportunity to reject, but did not
5. unfair if not compensated
A landlord leases one property to a family for living purposes and another to a business for operating a retail store. The first lease generally includes stronger tenant protections, such as the implied warranty of habitability, while the second allows greater freedom to negotiate lease terms. These are the two categories of rental real property.
what is residential and commercial?
List one factor that MAY be an exception to someone that may lack contractual capacity
emancipated minor, minor conducting adult activities, intoxication, mental incompetence, luxuries
A local business owner posts a sign outside their store stating, "I will pay $200 to anyone who finds and returns my missing dog." Bob sees the sign and decides to look for the dog. Bob has not found or returned the dog yet. What two types best describe the contract. Bilateral or Unilateral? Executed or Executory?
What is Unilateral and executory
Aunt Lisa promises her 17-year-old nephew, Ryan, that she will give him $3,000 on his 21st birthday if he agrees to refrain from playing video games, even though he enjoys playing them, until he turns 21. Ryan agrees to the arrangement and gives up playing video games for the next four years. When Ryan turns 21, Aunt Lisa refuses to give him the money. She argues that Ryan did not provide anything of value in exchange for her promise because he actually benefited from not playing video games. Is there valid consideration? Why or why not?
What is there is valid consideration because Ryan gave up a legal right to engage in an activity in exchange for Aunt Lisa's promise. This is Forebarence which is a type of consideration.
In promissory estoppel, the reliance has to be ____ and ____.
justifiable and detrimental
Sarah gives her neighbor permission to use her backyard for a birthday party. The neighbor does not receive any ownership rights or permanent interest in the property, and Sarah can generally revoke the permission at any time.
what is a license interest?
Contracts have an implied duty of _____ and _____
Emma owns a used car dealership. Her friend Jake tells her he is interested in purchasing a car. Emma responds, "I'll sell you one of my cars for a really good price. We can figure out the details later." Jake responds, "I accept your offer!" Was a valid offer made? Why or why not?
What is No, because the terms are too vague. It did not fit the definiteness of the terms element of an offer. Emma did not specify which car she was selling or the purchase price.
Before Emma starts her new job, her friend Jake helps her move into her apartment for free. A week later, Emma tells Jake, “Thank you for helping me move. I’ll give you $100 for all your help.” Jake agrees, but Emma later changes her mind and refuses to pay. Is Emma’s promise to pay Jake $100 legally enforceable?
What is No, because this is past consideration. Jake helped Emma before she made the promise to pay.
Jake, a 16-year-old high school student, agrees to purchase a brand-new gaming laptop from an electronics store for $1,500. Jake already has a working laptop at home that he uses for school, so the new gaming laptop is not something he needs for everyday living or an essential necessity. Jake and the store manager sign a written agreement outlining the purchase price and payment terms. Two days later, Jake changes his mind and tells the store manager that he no longer wants to purchase the laptop. The manager refuses to cancel the agreement, arguing that because both parties signed a written contract, Jake is legally obligated to follow through with the purchase. Is the contract enforceable? Why or Why not?
What is Jake has the right to disaffirm the contract because he is a minor, and the laptop is not a necessary item.
A buyer enters into a contract to purchase a house, but the seller refuses to transfer ownership. The buyer seeks specific performance rather than monetary damages because no other piece of land can be considered an exact substitute. Why does this principle explain why courts are more willing to grant specific performance in real estate contracts?
what is every parcel is unique?
What is the difference between a bilateral and unilateral contract?
bilateral - promise for a promise
unilateral - promise for an act
Sarah is selling her used car for $12,000. She tells Jake, "I am willing to sell you my 2022 Honda Civic for $12,000." Jake responds, "I would be willing to buy your car for a cheaper price. We can figure out how much later." Did Jake make a counter offer? Why or why not?
No, because Jake's proposed terms are not sufficiently definite. He did not specify the price he was willing to pay.
A construction company agrees to build a new office building for a business for $500,000. Halfway through the project, the construction company realizes that the cost of materials and labor has increased more than expected. The company tells the business that it will not finish the project unless the business agrees to pay an additional $50,000. The business agrees because it needs the building completed on time. After the building is finished, the business refuses to pay the additional $50,000. Is the business legally required to pay the additional $50,000?
What is No, because the construction company was already legally obligated to complete the building for $500,000. Under the preexisting duty rule, a promise to do something a party is already legally obligated to do generally does not count as new consideration.
A contractor performs renovations without the professional license required by a state licensing statute. When the homeowner refuses to pay, the contractor sues to enforce the agreement. Because the licensing requirement protects the public, the court refuses to enforce the illegal contract and applies this equitable doctrine to deny relief to the contractor.
what is the doctrine of unclean hands?
what is the key factor in determining if real property is commercial?
what is if it is income producing?
Sarah visits a hair salon and sits down for a haircut. The stylist cuts her hair, and Sarah is expected to pay even though neither party verbally agreed to a price or signed a contract. Their actions created this type of contract.
what is an implied contract?
Olivia owns a photography business and emails Jake an offer to photograph his wedding for $3,000. Her email specifically states that the full payment must be made within 10 days of the wedding. Jake responds by email:"I agree to hire you for $3,000 to photograph my wedding. However, I will make the full payment within 30 days after the wedding instead of 10 days." Olivia reads the email but does not respond. Under the mirror image rule what is the effect of Jake's Response?
What is Jake made a counteroffer because he changed one of the original offer's terms, meaning his response was not an acceptance. His response did not pass the mirror image rule.
Emma owns a bakery and tells Jake, a local supplier, "I promise to buy all the flour I need from you for the next six months, but I can choose to buy from someone else whenever I want." Jake agrees to the arrangement. Why might this agreement lack valid consideration?
What is Emma's promise is an illusory promise because she has complete freedom to decide whether or not to buy flour from Jake.
Sarah mails an offer to buy a car. John mails his acceptance on Monday, but Sarah does not receive it until Thursday. Under this rule, the contract becomes effective on Monday when John properly sends his acceptance, rather than when Sarah receives it. What is the rule in this?
what is the mailbox rule?
Sarah inherits a piece of land with no conditions or restrictions on her ownership. She has the right to possess, use, sell, or transfer the property, and upon her death, it can pass to her heirs. This is the most complete form of ownership in real property.
what is fee simple absolute?
Sarah promises to pay John $500 if he agrees not to file a lawsuit against her over a legitimate legal dispute. John's agreement to give up his legal right to sue is an example of this type of legal consideration.
what is forbearance?