BUS 160 FINAL

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tenorsextets
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158107
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BUS 160 FINAL
Updated:
2012-06-10 20:16:24
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business law
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  1. Contracts:
    • promise(s) that are legally enforceable, voluntary exchange of something that is valuable
    • *most contracts are not in writing!
    • **contracts are not a one-way street (a gift to someone with nothing in return is NOT a contract) and you
    • can't make a contract with someone to do something that they're legally obligated to do (unless they give up a legal right for something in exchange)
  2. Contract – Elements:
    • Agreement
    • Consideration
    • Capacity
    • Legality
  3. Contract Elements - Agreement:
    one party OFFERS something to another party and the other party AGREES to make that same deal (not legally enforceable on its own without the other elements)
  4. Contract Elements - Consideration:
    exchange of something of value (REQURED for a contract); not a gift
  5. Contract Element - Capacity:
    -intoxicated persons
    -minors
    • ability to understand the terms of the contract
    • -intoxicated persons: so intoxicated that the person doesn't understand the terms of the contract they're getting into; they can get get out of the contract in this case IF they undo it after a reasonable amount of time after they've become sober
    • -minors: people under 18 can get out of contracts as long as they undo it in a reasonable amount of time
  6. Contract Element - Legality:
    contract for lawful purposes only
  7. Contract Defenses:
    • Genuiness of Assent
    • Form
  8. Contract Defenses - Genuiness of Assent:
    -Fraud
    -Mistake
    -Undue Influence
    -Duress
    • meeting of the minds
    • -Fraud: misrepresentation of material fact, ONLY the defrauded party can accept the contract or decline to undo the contract
    • -Mistake: contract isn't understood correctly by miscommunication and BOTH parties can get out of
    • the contract (one or both parties can sometimes not be fully restored to original positions)
    • -Undue Influence: a person in power or authority takes advantage of a client
    • -Duress: extreme pressuring that shocks the conscience, no one would make this deal unless the proverbial or literal gun is to the head
  9. Contract Defenses - Form:
    writing requirement?: a contract that needs to be in writing to be enforceable and isn't put in paperwork cannot be enforced!
  10. Statute of frauds:
    • requirements that certain contracts be in writing
    • -sale of land
    • -one-year contracts
    • -marital contracts
    • -sale of goods more than $500
  11. Remedies for breach: (only deals with economic loss)
    • Monetary damages
    • Equitable remedies
    • -recission: contract is undone
    • -specific performance: person is ordered to perform as agreed to in the contract
  12. Valid Contract:
    legal contract
  13. Voidable contract:
    contract that is not for legal purposes or significance
  14. Express Contract:
    contract made with words (oral or written)
  15. Implied contracts:
    contracts where words aren't used or exchanged (based on conduct between the parties past and present)
  16. Quasi-contract:
    parties don't have a contract but the court imposes one on them inthe interest of fairness
  17. Quasi-contract - Elements:
    • •absence of actual contract between two parties
    • •one party has unjust enrichment (more benefits) at someone else's expense
    • •quantum meruit: payment for reasonable value of services rendered
  18. Valid Offer - Elements:
    • serious intent by offeror
    • resonably definite material terms
    • communicated to offeree
  19. Valid offer elements - serious intent by offeror:
    • uses the reasonable
    • person test/objective theory of contracts; does the person seem serious based on the conversation (contract made in anger or frustration or jest aren't considered valid/serious)
  20. Valid offer elements - resonably definite material terms:
    • ID of parties
    • ID of subject matter of contract
    • Consideration
    • Timing
  21. Valid offer elements - communicated to offeree:
    you cannot accept an offer without the offer in mind
  22. Offeror:
    the person that make the proposal for the contract
  23. Offeree:
    the person that receives the proposal for the contract
  24. Agreement:
    the mutual assent to the same bargain
  25. Offer:
    the proposal itself for the contract
  26. Acceptance:
    • voluntary, unequivocal decision to assent to the very same deal that was proposed; when the terms of the contract are change, they're not accepted
    • *adding the word “if” makes it a counter-offer
  27. Termination of offers by parties:
    • Revocation
    • Rejection
    • Counter-offer
  28. Revocation:
    (by offeror) the offeror can take the offer off the table anytime prior to acceptance if they want to
  29. Exception to Revocation:
    • option contract (one party pays for the privilege to keep the offer open for a set amount of time and the offer is reserved for them)
    • promissory estoppel (when the offeree relies on the offer, the offer can't be revoked because the offeree would be damaged in some way)
  30. Can minors get out of option contracts and promissory estoppel?
    typically no
  31. Rejection:
    (by offeree) rejecting the offer, meaning that the offer is now off the table
  32. Counter-offer
    • (by offeree) offeree
    • negotiates with the offeror by giving another price and presents a new offer (changing the price is ALWAYS a counter-offer)
  33. "mirror image" rule:
    parties have to accept the exact same terms between each other
  34. Termination of offers by operation of law:
    • lapse of time
    • destruction of subject matter
    • illegality
    • death or incapacity
  35. Termination of offers by operation of law - lapse of time:
    • an offer has a time limit and if that time limit is exceeded then it's taken off the table (if the buyer comes on the day after the limit is up and decides to buy the thing then it's considered a new offer)
    • *if there is no time limit set, then the court will set a reasonable time limit and will terminate the offer when it's not reasonable to keep it open for that long
  36. Termination of offers by operation of law - destruction of subject matter:
    if the offer hasn't been accepted yet and an event occurs where the subject matter is destroyed, then there is no contract
  37. Termination of offers by operation of law - illegality:
    when the offer is made and the law changes after the offer is made, then the offer is immediately off the table (most of the time the courts will let the offer be accepted as long as it was lawful when the offer was made)
  38. Termination of offers by operation of law - death or incapacity:
    if one party dies or becomes incapacitated, then the estate of the party can be sued to get the contract completed
  39. Can an "acceptance by silence" rule be put in contracts?
    you can't put a condition where if someone doesn't reply then they will consider it an acceptance
  40. Exception to the "acceptance by silence" rule:
    if it's like the guy that comes up to your car and starts washing your windows and you do nothing to stop them, then that is acceptance by silence!
  41. Mailbox rule:
    • the acceptance is effective once it is sent by authorized means
    • *in the case that someone revokes an offer and the offeree accepts the offer before seeing the revocation, then more questions need to be asked. If someone was given an authorized way to communicate by the offeree, then it's revoked.

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