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.
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BUSINESS LAW EXAM REVIEW
Part 3- 2015
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PART 3 OF 3 CONTENTS Consideration Capacity Writing Legality Other contract materials
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WHAT IS CONSIDERATION? Both sides
gain something
Fair but not necessarily equal
Give, trade and legal value must be proven
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RESCISSION To take
back consideration
MUST occur before ratification to be effective
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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
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UNCONSCIONABLE A grossly unfair contract for one side
Being taken advantage of
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FRAUD An “INTENTIONAL” misrepresentation
of an existing fact Misleading someone on purpose
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MATERIAL Very important detail to one side of a contract
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LEGAL VALUE A change in
the parties legal position as a result of the contract
Ex) You gain $20, I get my law mowed
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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
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LIQUIDATED DEBT Agreeing that a debt exists and to its amount
Ex) Getting a “correct” bill in the mail
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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
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DURESS Using an improper threat to
obtain an agreement
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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
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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
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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
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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
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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
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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!