I.
II.
III.
IV.
What is a K’
a. Enforceable promise; Legal sanction for breaking a promise.
b. ALLOCATION OF RISK: People will pay money to fix their risk
c. CONSENT (need consent for valid k’)
i. Objective indicia (outward expression of a person manifesting his
intention; Reasonable person std) + Subjective (intent of both ptys)
Bargain Theory of Contracts
a. Consideration
i. Unilateral (promise for performance) v. bilateral promise (both ptys
agree and its wholly executory if neither pty has performed)
ii. Sufficient vs. adequate
1. Sufficient- Real promise can be sufficient as consideration even if
not adequate consideration. Just need exchange of promises.
(ONLY THIS MATTERS IN K’ LAW)
2. Adequate- Market significance does not matter; Can make a bad
deal so long as there is a bargain. Bargain is a bargain if there is
sufficiency
b. Reliance
c. Promissory Estoppel
d. Restitution
Negotiation and Formation of the Contract
a. Role of the Courts
b. Offer and Acceptance
c. Negotiation and Closure
d. Good Faith in K’ Formation
e. Problems w/ Standard Form K’
f. Statute of Frauds
Contents of the K’
a. Words
b. Parol Evidence Rule
c. Interpreting the Terms of the K’
d. Implied Terms and the Implied Covenant of Good Faith