Consideration-2
If someone sells a home worth $300,000 for only $1.00, what is this called? Can this be considered consideration?
Nominal and yes it is fair consideration for both sides, as they agreed on the amount and value
These are offered by retailers giving customers 3 months or more to get a sales price and usually come with a rain check. What are they legally known as?
Firm Offers
Minors can disaffirm things as long as they fall into this category
Non-Necessaries (Luxury goods like jewelry, cars)
All marriage agreements must contain a written contract to be considered valid, right?
No! Marriage with consideration does, marriage without consideration does not.
If a 13 year old gets into college and takes out student loans, are they able to disaffirm these agreements because they lacked capacity to enter into them, right? (Explain)
NO, its considered a major commitment
Samantha is off to college and her parents want her to stay away from things that "Can get her off track and in trouble". Samantha's parents tell her "Stay away from alcohol until you turn 21 and we will give you $5000 at graduation, ok" Samantha agrees. Does this agreement contain consideration? Why or why not?
It does not, because its a gift. It can also be considered pre-existing public duty meaning no consideration was offered to parents either.
All Option agreements fall under this type of law?
Common law (UCC law are business or retail agreements)
16 year old Evan has fallen in love and decides he wants to get married. Evan goes to the local jewelry store named Falgiano Jewelry and speaks to a salesman named Brycen. Evan picks out a $12,000 ring and decides to purchase it. The salesman asks Evan for identification and Evan has an ID that says he is 19, which happens to be his brothers ID. Brycen sells the ring to Evan, only to learn a week later Evan is only 16, lied about his age and his parents have decided to take his motorcycle away (He was going to use to take his bride to California) and he has to return the ring. Can the store refuse to take the ring back because Evan has ID saying he was 19? Can Evan be charged with anything for lying? (If so what)
NO! They are still 16 and can disaffirm, but they just misrepresented their age and can be arrested or sued for this act
If a contract contains something in it that is illegal, the entire contract would be considered this.
Void
Any agreement made that turns out to be illegal or made between incompetent parties is considered this.
Void (Never happened)
Joey graduates from Princeton owing $300,000 in student loans. He gets a job paying $150,000 a year but learns his student loan payments of $2300 a month are too much for his budget. Joey contacts the bank and they agree to give him 1 year off in exchange for agreeing he owes the money and more interest. What is this called?
Forbearance
This means acting on a promise made and expecting the other party to do as they promised
Detriment
Old man Rob was a singer in a famous dark rock band in the 70's and is now a retired musician. Rob really enjoys his golfing and one day goes to play 18 with a radio DJ friend named Reg. Reg has wanted Rob to get his band back together to play a summer festival in Hamburg, but Rob refuses every time. After playing 11 holes and drinking while playing, Reg asks Rob one more time and Rob says "OK, you got me. I'll get the guys and play". Rob signs the contract, plays the last 7 holes and drives home. Later that evening, Rob calls Reg, says "I changed my mind, I was drinking and did not know what I agreed to" and says he is not playing. What 3 groups have special capacity rights? Did any of these apply to Robs ability to back out? (Explain)
Minors, Mentally impaired and intoxicated and no, Rob clearly was not unable to make this decision. He played all 18 holes, drove home and was able to do so.
When both parties fully complete their part of a contract and it ends, what is this called?
Executed
Mr. Gordon offers to sell Cartinelli his Dodge Charger Daytona for $65,000 and he tells Cartinelli he will throw in the extended warranty as part of the deal, knowing Cartinelli would get the extended warranty as the owner already. What is this called?
Existing Duty (Private)
Trey goes to the store one day to find a new tie he can replace, as he accidently got a mustard stain on the one he had for his big Friday night date. Realizing the store did not sell ties, he comes up with a great idea. A tie inside a tie inside a tie. In other words, buy a tie where if one gets dirty, unzip it to get rid of the top tie and the one underneath is clean and available. Trey tries to sell this to local Supemarket Topps and the manager says "Nobody comes here for ties" Trey says "I think they will sell. Buy 100 and if they don't sell, I'll take them back, ok?" What is this called and is this offer considered illusory?
Termination Clause and its illusory only for the store, as they can back out if Treys tie idea does not sell
This is the legal rule that allows a party to force another party to live up to their promise because a legal detriment was taken on, you suffered a substantial economic loss and need the courts help enforcing the promise
Promissory Estoppel
Adam decides to buy a horse from Willies farm when he is 17. Adam does not have the money to pay for it, so he agrees to be Willies stable boy for 16 months to pay off $100 a month until its paid in full. Adam makes the first 4 payments before his 18th birthday. 3 days after turning 18, Adam pays Willie another $100 only to learn he is moving to Chicago and cannot now take the horse. Adam asks for his money back and asks to disaffirm the agreement. Can Adan do this? Why or why not?
No, the payment made after turning 18 would ratify the agreement, because he did it as an adult.
If a contract has legal and illegal parts within it, the contract is called this
Divisible
You go to a garage sale to get things for College in the fall and find the perfect Dorm Fridge, for your pop, snacks and ice cream. The seller wants $200 and you have $50 on you. You give the person the $50 so you can go to the bank to get out the other $150. What is this called and what law does it fall under?
Option (Collateral) and Common Law
This is an open ended promise where either party can back out of the promise at any time
Illusory Promise
Name all of the 4 elements of Promissory Estoppel
Rely on promise, act in reliance (Detriment), suffer a substantial economic loss and courts help needed
If a court orders a 13 year old to be taken out of their parents home and places in a foster home, what took place? (Specifically what type?)
Formal Emancipation
Name 3 of the 5 things within the Statute of Frauds (Contracts that must be in writing to be valid)
$500+, 1 year to complete, co-signer, marriage with consideration and property ownership
Ava is a sales rep for Charlap's Ice Cream. Recently her boss, Mr. Charlap, tells her "We need to increase sales or we may need to lay off some employees". Ava contacts the Buffalo Bills and Pegula Enterprises to get an exclusive deal to sell Charlap's ice cream at the new stadium and ONLY this ice cream for 2 years. What type of agreement did Ava get the Bills to agree to?
Requirements Contract