Bus Law..Spr 2015
POWERPOINT #2
BUSINESS LAW:
Friday, February 13, 2015
 EQ:
Understand contract law.
Understand
elements and
characteristics of a contract.
 Who
 Who
has ever been offered something?
has ever written a contract to buy or
sell something?
BUSINESS LAW:
Friday, February 13, 2015
 What
distinguishes a contract from other
agreements?
 Contracts
are enforceable by the courts.
 Two
things necessary for an agreement
which MAY result in a contract…
1.
Offer
2.
Acceptance
BUSINESS LAW:
Friday, February 13, 2015
 CONTRACTS
= agreements between two
or more parties that create obligations
6
major requirements that must be
satisfied before courts will treat a
transaction as a legally enforceable
contract
BUSINESS LAW:
Friday, February 13, 2015
 1.
OFFER AND ACCEPTANCE
 Needs
to be serious offer to contract
 Offeror
makes the offer
 Offeree
is to whom offer made
 Definite
terms without changes
 *To
enforce arbitrary terms against parties
would be involuntary servitude.*
BUSINESS LAW:
Friday, February 13, 2015
 2.
GENUINE ASSENT
 And
thus NOT based on
Deception
A
mistake
Use
of unfair pressure used or exerted to
obtain offer
BUSINESS LAW:
Friday, February 13, 2015
 3.
LEGALITY
 Must
 It
agree too something that is legal
is not a contract if it is an agreement to
commit a crime or a tort.
BUSINESS LAW:
Friday, February 13, 2015
 4.
CONSIDERATION
 Both
sides involved receive something of
legal value as a result of the transaction.
 Without
this, merely have a promise to
make a gift.
BUSINESS LAW:
Friday, February 13, 2015
 5.
CAPACITY
 Must
be able to contract for self rather
than be forced to use parties or legal
representatives.
 This
can have deeper meaning for
contracts having to be signed by a
particular authority.
BUSINESS LAW:
Friday, February 13, 2015
 6.
WRITING
 Some
agreements must be placed in
writing to be fully enforceable in court.
 This
is based on contract’s level of
importance for the terms therein.
BUSINESS LAW:
Monday, February 16, 2015
 Offer
= proposal by an offeror to do
something, provided the offeree does
something in return
 3 Test a Valid Offer must pass:
 1.
Contractual intent must be present
 2. Offer must be communicated to offeree
 3. Essential terms of the offer must be
complete and definite
BUSINESS LAW:
Monday, February 16, 2015
 1.
Contractual Intent
 Jests
 Statements
made in Anger or Jest
 Preliminary
Negotiations
 Social
Agreement
BUSINESS LAW:
Monday, February 16, 2015
 2.
Offer must be Communicated to
Offeree
 3.
Essential terms must be:
 Complete
 Definite!
and
BUSINESS LAW:
Monday, February 16, 2015
 6-2
Termination of Offers
 Contracts may be terminated in a variety
of ways…
 Revocation
by the offeror (time stated or
reasonable length)
 Rejection by the offeree (counteroffer, death,
insanity, destruction)
 Options, firm offers
BUSINESS LAW:
Monday, February 16, 2015
 6-3
Acceptances
 Acceptance
 1.
must
Only offerees may accept
 2.
Acceptance must match the offer …
mirror image rule
 3.
Acceptance must be communicated to
the offeror
Monday, February 23, 2015
EQ: Understanding contract law.
 Closer
look at Genuineness of Assent
 DURESS
 Focus
 Hot
and UNDUE INFLUENCE
on the THOMPSON Family
Debate on page 124
 What’s
Your Verdict on page 125
Monday, February 23, 2015
EQ: Understanding contract law.
 Key
Terms
 Genuine
assent = true and complete
agreement
 Voidable
= can cancel what have put into
contract and get it back
 Rescission
= name of action when voiding
 Ratification
= conduct suggesting you
intend to be bound by contract
Monday, February 23, 2015
EQ: Understanding contract law.
 DURESS
 Defined
as occurring when one party uses
an improper threat or act to obtain an
expression of agreement; Examples:
1.
threats of illegal conduct
2.
threats to report crimes
3.
threats to sue
4.
economic threats
Monday, February 23, 2015
EQ: Understanding contract law.
 WHAT
IS YOUR MOST VALUABLE MATERIAL
GOOD (-- NEEDS TO BE SOMETHING WITH A
HIGH DOLALR AMOUNT)??
 Under
what forms of duress would you be
sell this GOOD for 1/10th of its actual
value??
Monday, February 23, 2015
EQ: Understanding contract law.
 The
story of the IRS and Stan
 Undue
Influence and Assent
 What’s
 Undue
your Verdict? Page 126
influence = occurs when one party to
the contract is in a position of trust and
wrongfully dominates the other party.
Tuesday, February 24, 2015
EQ: Understanding contract law.
 Lesson
…
 Jane,
Mike and skateboard sale
 Unilateral/Mutual
 Bugliosi/WYV
–Fact/Law grid
– where does this fall?
Tuesday, February 24, 2015
EQ: Understanding contract law.
 Types
of Contractual Mistakes
 Unilateral
 Mutual
Mistake
Mistake
 Material
Facts
Examples
 Void
Tuesday, February 24, 2015
EQ: Understanding contract law.
 Misrepresentation
 Innocent
misrepresentation
 Fraudulent
3
misrepresentation
part test on misrepresentation
1.
Untrue statement of fact
Active
concealment, silence
2.
Materiality
3.
Reasonable reliance
Tuesday, February 24, 2015
EQ: Understanding contract law.
 Fraud
and Remedies for:
 Misrepresentation
reckless
must be intentional or
 Misrepresentation/concealment
 Remedies
for Fraud include:
Recission
Damages
Punitive
Damages
INJURES