Part 3- 2015. Consideration Capacity Writing Legality Other contract materials.
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Transcript of Part 3- 2015. Consideration Capacity Writing Legality Other contract materials.
BUSINESS LAW EXAM REVIEW
Part 3- 2015
PART 3 OF 3 CONTENTS 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
RESCISSION To take
back consideration
MUST occur before ratification to be effective
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
UNCONSCIONABLE A grossly unfair contract for one side
Being taken advantage of
FRAUD An “INTENTIONAL” misrepresentation
of an existing fact Misleading someone on purpose
MATERIAL Very important detail to one side of a contract
LEGAL VALUE A change in
the parties legal position as a result of the contract
Ex) You gain $20, I get my law mowed
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
LIQUIDATED DEBT Agreeing that a debt exists and to its amount
Ex) Getting a “correct” bill in the mail
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
DURESS Using an improper threat to
obtain an agreement
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
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
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
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
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
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!