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Bus Law..Spr 2015 POWERPOINT #2
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BUSINESS LAW: Friday, February 13, 2015 EQ: Understand contract law. Understand elements and characteristics of a contract. Who has ever been offered something? Who has ever written a contract to buy or sell something?
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BUSINESS LAW: Friday, February 13, 2015 What distinguishes a contract from other agreements? Contracts are enforceable by the courts. Two things necessary for an agreement which MAY result in a contract… 1. Offer 2. Acceptance
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BUSINESS LAW: Friday, February 13, 2015 CONTRACTS = agreements between two or more parties that create obligations 6 major requirements that must be satisfied before courts will treat a transaction as a legally enforceable contract
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BUSINESS LAW: Friday, February 13, 2015 1. OFFER AND ACCEPTANCE Needs to be serious offer to contract Offeror makes the offer Offeree is to whom offer made Definite terms without changes *To enforce arbitrary terms against parties would be involuntary servitude.*
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BUSINESS LAW: Friday, February 13, 2015 2. GENUINE ASSENT And thus NOT based on Deception A mistake Use of unfair pressure used or exerted to obtain offer
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BUSINESS LAW: Friday, February 13, 2015 3. LEGALITY Must agree too something that is legal It is not a contract if it is an agreement to commit a crime or a tort.
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BUSINESS LAW: Friday, February 13, 2015 4. CONSIDERATION Both sides involved receive something of legal value as a result of the transaction. Without this, merely have a promise to make a gift.
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BUSINESS LAW: Friday, February 13, 2015 5. CAPACITY Must be able to contract for self rather than be forced to use parties or legal representatives. This can have deeper meaning for contracts having to be signed by a particular authority.
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BUSINESS LAW: Friday, February 13, 2015 6. WRITING Some agreements must be placed in writing to be fully enforceable in court. This is based on contract’s level of importance for the terms therein.
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BUSINESS LAW: Monday, February 16, 2015 Offer = proposal by an offeror to do something, provided the offeree does something in return 3 Test a Valid Offer must pass: 1. Contractual intent must be present 2. Offer must be communicated to offeree 3. Essential terms of the offer must be complete and definite
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BUSINESS LAW: Monday, February 16, 2015 1. Contractual Intent Jests Statements made in Anger or Jest Preliminary Negotiations Social Agreement
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BUSINESS LAW: Monday, February 16, 2015 2. Offer must be Communicated to Offeree 3. Essential terms must be: Complete and Definite!
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BUSINESS LAW: Monday, February 16, 2015 6-2 Termination of Offers Contracts may be terminated in a variety of ways… Revocation by the offeror (time stated or reasonable length) Rejection by the offeree (counteroffer, death, insanity, destruction) Options, firm offers
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BUSINESS LAW: Monday, February 16, 2015 6-3 Acceptances Acceptance must 1. Only offerees may accept 2. Acceptance must match the offer … mirror image rule 3. Acceptance must be communicated to the offeror
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Monday, February 23, 2015 EQ: Understanding contract law. Closer look at Genuineness of Assent DURESS and UNDUE INFLUENCE Focus on the THOMPSON Family Hot Debate on page 124 What’s Your Verdict on page 125
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Monday, February 23, 2015 EQ: Understanding contract law. Key Terms Genuine assent = true and complete agreement Voidable = can cancel what have put into contract and get it back Rescission = name of action when voiding Ratification = conduct suggesting you intend to be bound by contract
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Monday, February 23, 2015 EQ: Understanding contract law. DURESS Defined as occurring when one party uses an improper threat or act to obtain an expression of agreement; Examples: 1. threats of illegal conduct 2. threats to report crimes 3. threats to sue 4. economic threats
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Monday, February 23, 2015 EQ: Understanding contract law. WHAT IS YOUR MOST VALUABLE MATERIAL GOOD (-- NEEDS TO BE SOMETHING WITH A HIGH DOLALR AMOUNT)?? Under what forms of duress would you be sell this GOOD for 1/10 th of its actual value??
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Monday, February 23, 2015 EQ: Understanding contract law. The story of the IRS and Stan Undue Influence and Assent What’s your Verdict? Page 126 Undue influence = occurs when one party to the contract is in a position of trust and wrongfully dominates the other party.
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Tuesday, February 24, 2015 EQ: Understanding contract law. Lesson … Jane, Mike and skateboard sale Unilateral/Mutual –Fact/Law grid Bugliosi/WYV – where does this fall?
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Tuesday, February 24, 2015 EQ: Understanding contract law. Types of Contractual Mistakes Unilateral Mistake Mutual Mistake Material Facts Examples Void
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Tuesday, February 24, 2015 EQ: Understanding contract law. Misrepresentation Innocent misrepresentation Fraudulent misrepresentation 3 part test on misrepresentation 1. Untrue statement of fact Active concealment, silence 2. Materiality 3. Reasonable reliance
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Tuesday, February 24, 2015 EQ: Understanding contract law. Fraud and Remedies for: Misrepresentation must be intentional or reckless Misrepresentation/concealment INJURES Remedies for Fraud include: Recission Damages Punitive Damages
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