ENGLISH LEGAL TERMINOLOGY Professor Harland L. Miller, III Visiting Fulbright Scholar Pravna Fakultete Univerze v. Maribor Contract An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law. (Black’s Law Dictionary) Requirements for binding contract 1. Offer 2. Acceptance 3. Consideration Offer A promise to do or refrain from doing some specified thing in the future, conditioned on an act, forbearance, or return promise being given in exchange for the promise or its performance. (Black’s Law Dictionary) Offer A display of willingness to enter into a contract on specified terms, made in a way that would lead a reasonable person to understand that an acceptance, having been sought, will result in a binding contract. Acceptance An offeree’s assent, either by express act or by implication from conduct, to the terms of an offer in a manner authorized or requested by the offeror, so that a binding contract is formed. (Black’s Law Dictionary) Consideration Something (such as an act, a forbearance, or a return promise) bargained for and received by a promisor from a promisee. (Black’s Law Dictionary) Forebearance The act of refraining from enforcement of a right, obligation, or debt. (Black’s Law Dictionary) Offeree a. b. c. d. A person who makes on offer. A person who may accept an offer. Official who judges sporting events. The subject matter of a contract. Offeree b. A person who may accept an offer. Offeror a. A person who makes on offer. b. A person who may accept an offer. c. A person who places a general. advertisement in a newspaper. d. A broker. Offeror a. A person who makes on offer. Acceptance a. An exception to a general rule of contract law. b. A counteroffer that changes the terms made by an offeror. c. Surrender of the terms of the offeror. d. A manifestation of assent by the offeree to be bound to the terms of the offeror. Acceptance d. A manifestation of assent by the offeree to be bound to the terms of the offeror. Consideration a. Process of judicial deliberation before rendering a decision in a contested case. b. The lengthy recitals of “boilerplate” language appearing in many contracts. c. The inducement to enter a contract, and a necessary element to prove the validity of a contract. d. The detrimental reliance of an offeree. Consideration c. The inducement to enter a contract, and a necessary element to prove the validity of a contract. Estoppel a. A street sign used to control traffic flows. b. A legal bar that prevents one from asserting a claim or right that contradicts a prior act or statement. c. An ownership interest in land. d. A failure of consideration in a contract. Estoppel b. A legal bar that prevents one from asserting a claim or right that contradicts a prior act or statement. Promissory Estoppel a. A failure to prosecute a civil or criminal action. b. Power to make an offer to the public rather than a specific individual. c. Equitable doctrine recognized as a substitute for consideration in some cases. d. Ability of an agent to bind a principal in matters beyond the scope of agency. Promissory Estoppel c. Equitable doctrine recognized as a substitute for consideration in some cases. Unilateral contract a. A contract for the sale of only a single item or service. b. An unenforceable contract. c. A contract where there is no “meeting of the minds.” d. A contract where only one party makes a promise or undertakes performance. Unilateral contract d. A contract where only one party makes a promise or undertakes performance. Caveat Emptor a. Election made by parties to a letter of credit to apply the Uniform Customs and Practice for Documentary Credits. b. Principle to protect consumers from unscrupulous sellers. c. A Latin term for “let the buyer beware.” d. Implied warranty of fitness for use. Caveat Emptor c. A Latin term for “let the buyer beware.” Option contract a. A contract that is not binding because performance is optional. b. A binding agreement in which the owner agrees to sell the property to a prospective purchaser, at a specified price, for a stated period of time. c. An offer that can be revived after being rejected by the offeree. d. In securities law, a purchasing mechanism that is used only on the New York Stock Exchange. Option contract b. A binding agreement in which the owner agrees to sell the property to a prospective purchaser, at a specified price, for a stated period of time. Incapacity a. The inability to deliver merchandise promised in a contract. b. The inability to pay for merchandise ordered in a contract. c. A student’s inability to answer this question. d. A defense to contract liability, such as being too young. Incapacity d. A defense to contract liability, such as being too young. Duress a. In contract law, the equivalent of the tort known as “intentional infliction of emotional distress.” b. A defense sometimes raised in a breach of contract action, usually claiming that a contract is invalid because the breaching party did not sign the contract voluntarily. c. The lawful use of economic leverage to force another party to sign a contract. d. In corporation law, the forced sale of stock to an insider. Duress b. A defense sometimes raised in a breach of contract action, usually claiming that a contract is invalid because the breaching party did not sign the contract voluntarily. Statute of Frauds a. Codification of the equitable doctrine of quantum meruit. b. The statute providing for criminal sanctions for fraud in international business transactions. c. The statute providing civil remedies for tort of fraud. d. The statute providing that certain agreement are so important that they must be in writing and signed to avoid fraud. Statute of Frauds d. The statute providing that certain agreement are so important that they must be in writing and signed to avoid fraud. Unconscionability a. Contract negotiations usually made when a person is drunk or unconscious. b. Doctrine that allows courts to protect the weaker party in a contract. c. Unjust enrichment. d. A confession of judgment, such as the admission of debt by a debtor. Unconscionability b. Doctrine that allows courts to protect the weaker party in a contract. Third-Party Beneficiary a. A person who is not a party to the contract, but who benefits by it some way. b. A person who is a party to the contract and who can claim “privity of contract.” c. A necessary party who must always be joined in a civil action for breach of contract. d. A term to describe the general interest in seeing that contractual obligations are observed. Third-Party Beneficiary a. A person who is not a party to the contract, but who benefits by it some way. Breach of contract a. Excused failure to fulfill a promise. b. The failure, without any legal excuse, to perform part or all of a contract. c. Party’s unreasonable fear that the other party will not be able to fulfill a promise in the future. d. The oral agreement of the parties to modify the terms of a written contract. Breach of contract b. The failure, without any legal excuse, to perform part or all of a contract. Detrimental reliance a. Political or social union of contracting parties. b. Repudiation of a contract obligation. c. Relief from forfeiture of property held as security under a surety contract. d. Reliance that may result in promissory estoppel. Detrimental reliance d. Reliance that may result in promissory estoppel. Material breach a. A torn fabric. b. The failure of a “material” witness to testify at trial. c. A minor violation of a contract that the parties can ignore it they so choose. d. A substantial and significant violation of a contract. Material breach d. A substantial and significant violation of a contract. Rescind a. To transmit a document to another party a second time. b. To undo or to repudiate a contract, so the parties are effectively restored to the positions that they had before they entered into the contract. c. The intentional failure to incorporate all of the material terms from a business negotiation in the final contract. d. The intentional omission of uncertain terms from a contract. Rescind b. To undo or to repudiate a contract, so the parties are effectively restored to the positions that they had before they entered into the contract. Uniform Commercial Code a. The application of the French Civil Code to commercial transactions made between the U.S. and France. b. Pricing mechanism to determine the retail commercial value of army uniforms. c. Mass media regulation which fixes advertising costs on American television. d. A proposed code that has now been adopted by most of the state legislatures in the hope of creating a common commercial law in the U.S.. Uniform Commercial Code d. A proposed code that has now been adopted by most of the state legislatures in the hope of creating a common commercial law in the U.S.. Warranty a. Any direct or indirect statement that may be made by a seller of a product to the ultimate purchaser. b. A promise, either express or implied, that a product will have certain properties, qualities, or characteristics. c. Contractual promises made by an agent to a principal. d. A document, issued only by a court, allowing the police to search the property of any person who fails to honor any contractual promise made to another person. Warranty b. A promise, either express or implied, that a product will have certain properties, qualities, or characteristics. Meeting of the Minds a. An annual convention of very intelligent trial lawyers b. An annual national convention of even more intelligent law professors. c. An annual convention sponsored by the Nobel-prize winning Campaign to Ban Land Mines led by Jody Williams. d. A concept often discussed in contract classes to describe an agreement between two parties. Meeting of the Minds d. A concept often discussed in contract classes to describe an agreement between two parties. Briefing cases A case brief is essentially a document you write for your own use. Takes notes on the facts, issues, arguments and holdings of the cases and organize them in a manner which will be useful to you. Typical Outline I. Name, court and date II. Issues the court will decide III. Relevant facts IV. Lower court procedure and holding V. Appellant’s argument VI. Appellee’s argument VII.Holding in the case and reasoning State v. Bryant Vermont Supreme Court (2008) Issue: Whether the warrantless aerial scrutiny of defendant’s yard, for the purpose of detecting criminal activity by the occupant of the property, violated privacy rights secured by the Vermont Constitution? Relevant Facts The local forest official suspected that defendant was responsible for marijuana plants that were reportedly growing in the National Forest (not on defendant’s property) because he found defendant’s insistence on privacy to be “paranoid.” The forest official suggested to the State Police that a Marijuana Eradication Team (MERT) flight over defendant’s property might be a good idea. MERT is an anti-drug program, and MERT flights are executed by the Vermont State Police in cooperation with the Army National Guard. Relevant facts (continued) On August 7, 2003, the state trooper and an Army National Guard pilot flew in a National Guard helicopter to the Goshen area. Having previously located the site on a map, the trooper directed the pilot to defendant’s property, where two plots of marijuana were observed growing about 100 feet from the house. Trial court procedure At a suppression hearing the court denied defendant’s motion, holding that defendant had no reasonable expectation of privacy from the sky. Trial Court Decision (cont.) The trial court reasoned that, while helicopter flights over one’s property in rural Vermont might be infrequent, a reasonable person would still assume that such flights will happen. The court concluded that the police surveillance was not so intrusive as to violate the Vermont Constitution. Vermont Supreme Court held The aerial surveillance in this case was a warrantless search forbidden by the Vermont Constitution. The warrant authorizing the subsequent search of defendant’s premises for marijuana plants was obtained solely on the basis of the aerial observations. The evidence seized upon executing the warrant should therefore have been excluded from defendant’s trial. Since the error was clearly prejudicial, his conviction must be overturned. Dissenting opinion What does Justice Dooley argue? Sentence editing It is clear and obvious that an offer to sell the oil was made by the Egyptian Company. Revised The Egyptian company offered to sell the oil. Original The buyer for the French company rejected the offer made by the offeror due to the fact that he thought it was unfair to him. Revised The buyer for the French company rejected the offer because he thought it was unfair. Original It is important to note that at the time the contract was signed the offeree was not under duress. Revised When the contract was signed the offeree was not under duress. Original In this instance it should be noted that the arbitration award from an earlier sale was in favor of the German automobile manufacturer. Revised The arbitration award from an earlier sale was in favor of the German automobile manufacturer. Original The court should consider the fact that under the statutory law of the state, in order to satisfy the statute of frauds a contract must be written and signed by the party against who the agreement will be enforced. Revised Under the statutory law of the state, in order to satisfy the statute of frauds a contract must be written and signed by the party against who the agreement will be enforced. Original It should be obvious to anyone that the contract is binding after it has been accepted and signed by the offeree. Revised A contract is binding after it has been accepted and signed by the offeree. Original It is important to note that in some instances the equitable doctrine of promissory estoppel could be recognized as a substitute for consideration under American contract law. Revised Sometimes the equitable doctrine of promissory estoppel could be recognized as a substitute for consideration under American contract law. Original Although Joseph did not have any authority to enter into the contract negotiations with the French design firm. Revised Joseph was unauthorized to enter into the contract negotiations with the French design firm. Original It was obvious, however, that the attorney from Mexico could ratify it because of the fact that Joseph was acting as her agent. Revised However, that the attorney from Mexico could ratify it because Joseph was acting as her agent. Original It should be understood by anyone that a contract couldn’t be binding unless the offeree has manifested acceptance of the terms of the offer. Revised A contract cannot be binding unless it is accepted by the offeree. Class on April 29, 2008 Both sections meet with Prof Janja Hojnik. After that, both sections will meet with Prof. Miller at 10:15- 12:00 on Tuesdays.