Bus Law..Spr 2015
CHAPTER 8 9 10 11
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
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 Consideration
 1.
Each party must give an act, forbearance or
promise to the other party.
 2.
Must trade what they contribute to the
transaction.
 3.
What each party trades must have legal value
and be worth something in the eyes of the law.
 A.
Adequacy of consideration
 B.
Nominal consideration
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 Now,
let’s go back and have someone
read “What’s Your verdict” on page 139.
 Deeper
discussion of Coercion and
Genuineness of Assent as relates to
Consideration – see “tough economic
times.”
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 Classwork
 Read
8-2 and 8-3 from pp. 143-149
 Write
out all the (8) definitions on workbook pages
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 Circumstantial
 Illusory
Consideration
promises
 Termination
 Output
 Existing
clauses
and requirements clause
Duty
 Public
and Private variety
 Settlement
of liquidated/unliquidated debts
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 Continued
 Release
 Composition
 PAST
of creditors
PERFORMANCE
Wednesday, March 4, 2015
EQ: Understanding contract law and
elements of consideration
 WHEN
consideration not required
 Promise
to charitable organizations
 Promises
covered by the UCC
 Promises
barred from collection by statute
 Promissory
estoppel
EQ: Understanding contract law and
elements of consideration
 Wed
class closer / Thurs class starter
 Finish
definition in workbook
 Answer
all Concept Review and Goals Review
questions in workbook for 8-2 and 8-3
More On Consideration and
Pledges

Pledge = creditor obtains possession of collateral and possession
may be based on written or oral agreement.

To be a pledge, creditor must have possession of collateral until
“loan” is discharged

Pledgor/debtor voluntarily gives up possession of the property

Pledgee/creditor gets possession until legal obligation is performed

See examples ….
What do you see? What’s missing?
Another example
Put together a Pledge Card

Using examples and the internet, please pick a not-for-profit
organization and come up with an effective pledge card for that
organization.

Be sure to include:

Information about the organization and where all people can give
within it

Sufficient information blanks for pledgor

Sufficient information blanks for pledgor’s choices about:

Method of payment, frequency of payment, direction of gift

Other key contact points betwee pledgor/pledgee
A Closer Look at Chapter 9 …
9-1
Contractual Capacity for
Individuals and Organizations
9-2
Limits on the Rights of
those WITHOUT CAPACITY
Monday, March 9, 2015
Class Starter
 Please
get a textbook and your
workbooks.
 Please complete:
Read
Pp. 154-162.
Definitions
on page 51 (wkbook)
Answer 11-14 on pg. 52 (wkbook)
Answer 1-6 on pg. 54 (wkbook)
CHAPTER 10:
EQ: What agreements
are void and unenforceable?
 Class
Discussion:
What are some types of contracts that
society and courts should not enforce
even though all the enforceable
elements of a contract are present??
EQ: What agreements are void
and unenforceable?

Read aloud Hot Debate on page 168.

Lottery

Wager

Pari-mutuel betting

State-run lotteries

Bingo games and pull-tab betting
EQ: What agreements are void
and unenforceable?

Competency license

Revenue license

Price fixing

Bid rigging

Unconscionability

Procedural version = creation of contract with “fine print”

Substantive version = obvious “unfair” terms
EQII: Why do some agreements
need to be in writing?

Statute of Frauds include:

Contracts to buy and sell goods for a price of $500 or more

Contracts to buy and sell real property or any interest in real property

Contracts that require more than one year to complete

Promises to pay the debt or answer for a legal obligation of another
person

Promises to give something of value in return for a promise of marriage

LET’S TAKE A CLOSER LOOK AT THESE!
EQII: Why do some agreements
need to be in writing?

Remember the essential terms to create a valid offer:

1. Name of the parties

2. Subject matter description

3. Price

4. Quantity

5. Signature

6. Other essential terms
EQII: Why do some agreements
need to be in writing?

Specific Rules of Interpretation

These should be kept in mind because a court of law certainly will
review a contract based on these.

1. ANALYSIS

2. CONFLICTING TERMS

3. WORDS

4. AUTHORS OF AMBIGUITY

5. IMPLIED REASONABLENESS
EQII: Why do some agreements
need to be in writing?
 Parol
Evidence Rule = consists of words
spoken prior to the execution of the final
writing or at the time of signing, generally
inadmissable in court proceedings
 Certain
Exceptions to this .. See page 182
Assignment
 By
end of class, come up with two sample
questions with answers for Chapter 9 and
2 sample questions with answers for
Chapter 10.
 They
may be multiple choice or fill in the
blank.
Tuesday, March 10, 2015

More on: Illegal Agreements and Statute of Frauds

EQ: What agreements are void and unenforceable?
Why do some agreements need to be in writing?

Sample Trivia Questions reminder:

Include the question and the answer.

Isolate the answer from the question.

We will be putting together more trivia questions for a full day of review
on Monday, March 16, 2015.
Tuesday, March 10, 2015
 Class
Starter and Yesterday’s
Review:
Read over pp.168-182
On page 184, Complete 1-9
Matching
On page 185, answer #10-14.
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

11-1 TRANSFER AND DISCHARGE

Will Conclude our Look at Contracts by looking
at how contractual obligations are both
transferred and discharged.

Hot Debate on page 188

What’s Your Verdict on page 189

Assignment, obligor and performance
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

What are Non-assignable rights that may NOT BE
TRANSFERRED?
 Right
created under a contract that prohibits transfer
of contractual rights
 Claims
for damages of personal injuries
 Claims
against the United States
 Rights
to personal services, especially those of a skilled
nature, or when personal trust and confidence are
involved
 Assignments
statutes
of future wages, as limited by state
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

Key Terms regarding discharge OF
CONTRACTUAL OBLIGATIONS BY PERFORMANCE
1. Discharge
2. Breach of contract
3. Substantial performance
4. Defaults
5. Anticipatory breach
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

Key Terms regarding discharge OF
CONTRACTUAL OBLIGATIONS BY INITIAL TERMS
1. On a specific date or upon expiration of a specific period
2. Upon occurrence of a specified event
3. Upon failure of a certain event to happen
4. At free will of either party upon giving notice
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

Key Terms regarding discharge OF
CONTRACTUAL OBLIGATIONS BY SUBSEQUENT AGREEMENT
1. Rescission
2. Accord and satisfaction
3. Novation

Key Terms regarding discharge OF
CONTRACTUAL OBLIGATIONS BY PERFORMANCE
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?

Key Terms regarding discharge OF
CONTRACTUAL OBLIGATIONS BY OPERATION OF LAW
Alteration of terms must be
1. Material
2. Intentional
3. Made by party to agreement
4. Made without consent of other party
http://study.com/academy/lesson/contracts-for-sale-of-landdefinition-explanation.html
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?
 11-2
Remedies for Breach of Contract
Minor
Breaches
Major
Breaches
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?
 Remedies
for a Major Breach
Recission
Money
and restitution
damages
Specific
Performance
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?
 More
on Money Damages …
Compensatory
Consequential
Punitive
Liquidated
Nominal
CHAPTER 11: EQ: How contractual
obligations are transferred and fulfilled?
 Factors
affecting Choice of Remedy
1.
Conflict of Remedies
2.
Duty to Mitigate
3.
Waivers
4.
Statute of Limitations
5.
Bankruptcy