Agreement
What element of the House of Contracts must the Offeror have when making the offer?
Volutary Consent (Intent)
What equitable remedy for consideration is similar to Fraudulent Misrepresentation and what are the elements?
Promissory Estoppel
1) respondent makes a promise
2) w/ knowledge petitioner will likely rely
3) petitioner relies
4) reliance is justified & detrimental
What is the rule when dealing with minors in a contract?
If you deal with a minor in a contract, you do so at your own peril.
What statues are agreements that charge higher interest rate than the limit and differ from state to state?
Usury Statutes
What element of the House of Contracts is comparable to an equitable maxim?
Describe a counteroffer and what happens to each party.
The offeree rejects the offer and proposes a new offer. Making the original offeree the Offeror in the new offer.
You land a job at a start-up postgrad and the company did great its first year. The company throws a celebration for surpassing its goals and bottles of champagne begin to pop. Your boss announces if the company continues to do well this time next year that everyone will receive a 5% increase in their salary. A year passes and you find yourself at another celebration in regard to the company's success but you never see the 5% increase that you were promised. Everyone at the company is now mad as ever and wants to sue your boss. Are they able to?
No, your boss provided an ILLUSORY PROMISE and did not mark specific milestones that needed to be hit to get the 5% increase (profitability bonus).
If you enter a contract with someone who may lack capacity, is the contract void or voidable?
Voidable
True or False: When it comes to legality, the court will only enforce your agreement if it is not to commit a crime.
False- The contract must be for a lawful purpose at agreement and performance. (Think supervening illegality)
What happens to a contract if all elements are not met?
The contract may be void or unenforecable.
The Kentucky Derby is coming up and all the rich Southern folks couldn't be more excited, especially since that's basically all to do in Kentucky. Lindy Sue decides she isn't going to just make bets this year but she is going to buy a racehorse to make some real dough. The man she buys it from said he would deliver the horse himself to her and they would be there 2 weeks before the derby. Lindy Sue never hears from him and thinks she has been scammed so she goes to give him a call. Before she does, she turns on the news and see the headline "Derby horsebreeder legend dies in fatal car accident and Horse is running loose on I-24" What happens to this contract?
The offer and the contract would be terminated due to death of Offeror.
You have worked at a company for 6 years. You are the best in your division and everyone thinks very highly of you. Your boss isn't really the best at being responsive but he hears about your success and offers you a bonus for all the work you've done for the company in your time here. You are excited but your excitement goes down as the months pass without seeing the bonus hit your bank account. Is your employer required to give you this bonus? Why or why not?
No, this is considered past consideration and new contracts require new consideration.
Smith buys a car from Jones Ford Company for $10,000.00 when Smith is 17 years of age. Smith finances the car with Jones for 5 years making installment payments each month. Smith reaches his 18th birthday and continues to make payments for two months to Jones and then has a wreck. Smith decides that he is going to avoid the contract and get his $10,000.00 back. Is Smith able to leave the contract? Why or why not?
By making payments after his 18th birthday, Smith impliedly ratified the contract and the car was beyond normal wear and tear so he cannot leave.
What is there to be said about statutes against Gambling?
Any contract in furtherance of the gambling enterprise cannot be enforced.
What are the R words and who do they apply to?
Revoke: offeror
Reject: oferee
Reaffirm: either party
Ratify: minors
Rescind: courts
Reform: courts
Jimmy has a huge vintage clothing collection. He finds an authentic Grateful Dead shirt on Ebay and messages the seller to lock in his offer. The seller says he only accepts confirmation of an acceptance to sale via mail. Jimmy tells him he will send it through mail on Wednesday of that week. Jimmy goes to the post office first thing Wednesday morning and sends it. He checks Ebay the next day and the seller says he wants to revoke his offer. Is this revocation valid?
No, because of the mailbox rule. Since Jimmy sent out his acceptance on Wednesday, he already accepted the offer so the offeror cannot take it back.
Two parties, a contractor and a homeowner, enter into a contract for the renovation of a house. A week later, the contractor becomes dissatisfied with how much he will be paid. He tells the homeowner that he will walk away from the project unless he is paid more for his services. Faced with the prospect of not having his desired work completed, the homeowner agrees. Is the homeowner required to pay the additional cost under the contract?
No, the contractor had a pre-existing duty to perform at the original price.
Linda, 83, has struggled with dementia for a few years. She has periods where she is not affected by it and other times where she struggles. Her grandson, Joe, visits her regularly and knows that she lives comfortably but isn't "rolling in the dough" as some might say. Well, when he does one of his regular check-ins he notices there's a Range Rover in the driveway. Joe, thinking his grandmother must have a guest over, walks in the house to just see his grandma. She tells him that shes been feeling great lately and treated herself a new car and she is able to recollect the whole scenario. Is the contract with the car dealership enforecable? Why or why not?
Yes, it is because Linda was in a lucid interval and not lacking capacity.
Who has the legal and equitable title in Security Deeds? Who has the legal and equitable title in Mortgages? Who has legal title in a Trustee's Deed?
Security Deed: legal=lender, equitable=borrower
Mortgage: legal=borrower, equitable=lender
Trustee's: legal=trustee(third party)
You're applying for a job at your dream company and get the job! Your new boss tells you to mail him your acceptance. You are just too eager and decide to go to his office and hand it to him in person. You show up to his office and he is shocked. Little did you know, he was hoping your offer got lost in the mailroom because his mailroom assistant is L-O-U-S-Y and loses 90% of his mail. He says he can't accept your offer since you did not follow his instructions. Is his revocation valid?
His revocation is invalid because your substitute means worked. If they did not work, then it would be valid.
As Lulu, 18, goes off the college her mother is so worried about her precious party animal daughter whom she probably should've named De-Lulu after hearing all her stories from high school parties. She promises her sweet daughter she will give her $1,000 next May if she does not go to any parties or drink at all and just focuses on her studies for her freshman year. Lulu, like many college students, is as broke as ever and she cannot turn the offer down. Surprisingly, Lulu was sooooo studious and didn't have a drop of alcohol. If Lulu's mom doesn't pay her, does Lulu have any argument for why she deserves the money?
No, but IF Lulu was 21, she could say she had to forbear her right to drink but since she is 21, she does not have any argument since she cannot legally drink.
What is the R word we use when talking about minors in contracts? What are the types?
Ratification- A minor can impliedly and expressly ratify a contract.
Implied: ex: continuation of payments after age of majority
Express: State they want to stay in contract
You work for Coke as a Taste Biologist. Your job is to formulate specific recipes to ensure Coke keeps its unforgettable taste. When you first got the job, you didn't understand why you have to sign so many forms and why one of them said, "Work in the Western Hemisphere.... 24 months.... must not get another job at any competing company..."After a while you decide you would like to work with other sodas and Coke isn't the place for you. You resign and begin to look for new jobs at different soda companies. Your employer at Coke gets word of that and sues you for pursuing those jobs. Can they sue you?
Yes, you signed a covenant not to compete and must obey the scope given as long as it's reasonable.
What kind of Deed does the grantor want and why? What kind of Deed does the grantee want and why?
Grantor wants Quitclaim Deed beacause there is no warranty. Grantee wants a Warranty Deed because the grantor has to defend it.