Formation
What is the mailbox rule?
Once an offeree has dispatched his acceptance in mail the offer has been accepted, it is too late for the offeror to retract the offer
What is the mirror image rule?
Measures whether there is a meeting of the minds
Must send back exactly what was sent
Is a breaching party required to compensate the other party for damages resulting from the breach?
Yup
Handicapped Children's Board
What is a misrepresentation?
An assertion that is not in accord with the facts
Michael offers Paul a bartending job to work at Splash Nightclub. Paul responds "I would love to work there; I have always wanted to be an exotic dancer!"
Do Michael and Paul have a valid contract? Explain
What is the difference between an offer and a solicitation?
Offer proposes a deal
Solicitation invites someone to make an offer
When is an advertisement an offer?
When it invites specific action without further communication and leaves nothing for negotiations.
What is a repudiation?
A statement by the obligor to the obligee indicating that the obligor will commit a breach that would of itself give the obligee a claim for damages for total breach or
A voluntary affirmative act which renders the obligor unable or apparently unable to perform without such a breach.
What are the 4 types of fraud?
Fraud in the factum
Fraud in the inducement
Fraud in concealment
Fraud in silence
Emma has offered Josie a job to work at the local geography fair for $2 an hour (no one is buying tickets for the fair). Josie, afraid of what working the fair would do to her social reputation, responds that she would need to think about it. Josie sends a letter indicating her agreement to Emma's terms 2 days later. Emma calls Josie and tells her that she has found a replacement to work the fair, and no longer needs Josie to work it. Can Josie sue Emma for breach? Explain.
Yes she can. Once Josie sent the letter of agreement, there was a valid and enforceable contract between them. Emma's statement that she intends to hire someone else is a repudiation, and Josie can sue to recover.
What is illusory consideration?
An invalid claim that is not reasonable and or uncertain under the law
If the other party has the right to change the terms of the agreement to avoid arbitration, the agreement is illusory
What is a pure promise and a pure condition?
promise with no conditions- a gift
no promise, triggers performance
No
Unless the conduct constituting the breach is also a tort for which punitive damages are recoverable
What is frustration of purpose?
Performance may be excused where a change in circumstances following contract formation defeated mutually understood purpose of contract
A group of dwarves work for a wizard, picking mushrooms for his potions. They get paid 3 gold shillings for 6 months of mushroom picking. Before the picking season starts, the dwarves tell the wizard that they are unhappy with their current wage, and demand to be paid an additional bronze shilling ontop of their 3 gold shillings. The wizard agrees, and the picking season begins. After the season ends, the wizard pays the dwarves 3 gold shillings. Will the dwarves be successful in suing the wizard for breach? Explain.
Most likely not. Alaska Packers Association v. Domenico - You cannot use old considerations for a new contract. Here, the dwarves did not add anything to their side of the bargain, yet demanded more payment for the same work. To have an enforceable contract with new consideration, the parties must begin the contract process from the start and make a new contract.
When do courts look into the adequacy of consideration?
Only if it is grossly inadequate
What are the 4 types of contract terms?
Boxtop Terms- Terms more readily available to consumers
Shrinkwrap Terms- Inside the package; Don't know what I am agreeing to until I open the box
Clickwrap Terms- Agreement click required
Browsewrap Terms- Agreement click not required
When may a failure to give assurance be treated as a repudiation?
If there’s a good reason to believe that the other party won’t fulfill their part of the deal in a way that would cause serious harm, you can ask them to prove they’ll follow through. While waiting for that proof, you’re allowed to pause your own part of the deal as long as you haven’t already received what they owe you.
If the other party doesn’t provide proof that they’ll follow through within a reasonable amount of time, you can treat it as if they’ve decided to back out of the agreement entirely.
Fraudulent Misrepresentation
Duress
Undue Influence
Unconscionability
Shmingle and Spongle create a valid contract for Shmingle to mow Spongle's yard. Shmingle delegates this duty to Jormungandr, who completely forgets to do it. Is Shmingle liable to a breach of contract suit? Explain.
Yes, Shmingle is liable to be sued for breach of contract unless Spongle specifically released him from his obligation. RS § 318
When can silence qualify as a valid acceptance?
Where the offeree benefits from a service and has the reasonable opportunity to reject it and has reason to know that the offeror will expect compensation.
Where the offeror informs the offeree that silence or inaction may manifest assent and the offeree intended to accept by remaining silent.
Where it is reasonable that the offeree should notify the offeror if he doesn’t intend to accept
What are the 4 things that a valid acceptance must have?
Must be communicated to the offeror
Must be in compliance with any instructions given
Must not vary the terms of the offer
Must be accepted while the offer is still in effect
When will an injunction against breach of a contract duty be granted?
The duty is one of the forbearance (Committing to only working with one party or committing to not work with a specific party)
The duty is one to act and specific performance would be denied only for reasons that are inapplicable to an injunction
What are the types of contracts covered by the Statute of Frauds?
1. Contracts to Answer for the Debt or Obligation of Another
2. Contracts of Executors or Administrators to Answer for the Duty of Their Decedents
3. Contracts Made upon Consideration of Marriage
4. Contracts for the Sale of Land or the Transfer of an Interest in Land
5. Contracts That Cannot Be Performed Within a Year of Execution
6. Contracts for the Sale of Goods for the Price of $500 or More (UCC 2-201)
Bossman calls Caitlyn into his office one day at work. Bossman informs Caitlyn that she is being let go, citing her being asleep on the job for 78 of the 80 hours she worked over the past 2 weeks. Caitlyn, enraged at being fired, threatens Bossman with the "most drawn-out, wild goose chase of a lawsuit that will economically ruin him." Bossman responds with his own threat, telling Caitlyn that if she doesn't leave the building soon, he will sue her in civil court for trespass to land. Analyze both people's threats, and say which, if either, is an improper threat.
Bossman's threat is a proper threat because he threatened to use the civil law system against Caitlyn but in a way that actually has merit/good faith.
Caitlyn's threat is an improper threat because what she threatened could be a criminal prosecution or use of the civil process in a bad faith manner. Also, what was threatened is otherwise a use of power for illegitimate ends.