Part 3- 2015. Consideration Capacity Writing Legality Other contract materials.

19
BUSINESS LAW EXAM REVIEW Part 3- 2015

Transcript of Part 3- 2015. Consideration Capacity Writing Legality Other contract materials.

Page 1: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

BUSINESS LAW EXAM REVIEW

Part 3- 2015

Page 2: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

PART 3 OF 3 CONTENTS Consideration Capacity Writing Legality Other contract materials

Page 3: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

WHAT IS CONSIDERATION? Both sides

gain something

Fair but not necessarily equal

Give, trade and legal value must be proven

Page 4: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

RESCISSION To take

back consideration

MUST occur before ratification to be effective

Page 5: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

FORBEARANCE A promise NOT

to do something you have a legal right to do

Ex) Rather than to pay back a loan, you ask for an extension of time to NOT pay

Page 6: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

UNCONSCIONABLE A grossly unfair contract for one side

Being taken advantage of

Page 7: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

FRAUD An “INTENTIONAL” misrepresentation

of an existing fact Misleading someone on purpose

Page 8: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

MATERIAL Very important detail to one side of a contract

Page 9: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

LEGAL VALUE A change in

the parties legal position as a result of the contract

Ex) You gain $20, I get my law mowed

Page 10: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

PROMISSORY ESTOPPELPromising a gift and making it an enforceable contract in courtMust show a legal detriment in order to win a case involving a promise

Page 11: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

LIQUIDATED DEBT Agreeing that a debt exists and to its amount

Ex) Getting a “correct” bill in the mail

Page 12: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

FIRM OFFERS A contract

overseen by UCC Law (Retailers) in which a promise stays open for at least 3 months

When a store gives a customer a rain check

Page 13: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

DURESS Using an improper threat to

obtain an agreement

Page 14: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

OPTIONS CONTRACTS Overseen by Common

Law Usually collateral is

involved (Something of value used to keep the offer open)

Ex) Giving a person $40 so you can have a week to decide if you want to buy their car

Page 15: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

CAPACITY Ability to understand a contract

and its terms Protected groups include minors,

intoxicated and mentally impaired Intoxication is never an absolute

defense Only protects groups against

luxury goods purchases (Non-necessaries) even if a minor lies about their age

Page 16: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

TIMEFRAMES Age of minority is the shortest timeframe of a persons life (Birth to 18)

Age of Majority is the longest time of a persons life (18- end of your life)

Anyone within the age of minority is a minor

Page 17: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

MINORS CANNOT GET OUT OF THESE CONTRACTUAL AGREEMENTS

Banking contracts Major Commitments (Military, student loans)

Insurance contracts Sale of reality Apartment contracts in some states

Page 18: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

STATUTE OF FRAUDSWhen contracts “Must” be in writing to be considered valid

$500+ Takes more than 1 year to

complete Promise to pay the debt of another Marriage with consideration Sale of real property

Page 19: Part 3- 2015.  Consideration  Capacity  Writing  Legality  Other contract materials.

ANY QUESTIONS? Exam Wednesday/Thursday #2 pencil Book turn in

THANK YOU for being a wonderful class… Its been a great year and I wish you nothing but the best!