CCN1kAC1 LAW l.

ConLracL law ls Lhe law of exchange of goods and servlces whlch ls voloototy and ln a
ftee motketploce
1.
1he markeL ls domaln of free conLracLlng (conLracLlng = enforceable promlse) 2.
ConLracL law governs LransacLlons ln Lhe uoteqoloteJ sectot of tbe ecooomy 3.
1here are oo pooltlve Jomoqes ln conLracLs. Cnly economlc harm ls Lyplcally consldered 4.
1he SLaLe ls Lhe ulLlmaLe auLhorlLy whlch enforces conLracLs. 3.
Concepts: l.
Common Law: esLabllshed case law 1.
kestatements (Second) of Contracts: reformaLlon close Lo common law, buL secondary 2.
ucc opplles ooly to sole of qooJ a)
r|mary urpose 1est: lf k mlxed goods and servlces, uSS governs only lf goods
are ma[orlLy or domlnaLe (prlmary) purpose of Lhe k
b)
Sav|ngs rov|s|on: lf uCC doesn'L cover an lssue, common law prevalls c)
Un|form Commerc|a| Code: passed as sLaLuLory law ln 49 SLaLes, general concepLs: 3.
Author|t|es: ll.
Cons|derat|on 1.
Mutua| assent 2.
art|es ab|e to contract 3.
Sub[ect matter upon wh|ch the k can operate (essent|a| terms) 4.
LLLMLN1S (per CCCA 13-3-1): lll.
Contract ls a legally enforceable agreemenL. AlLernaLlvely, a conLracL ls a promlse, or seL of
promlses, for breach of whlch Lhe law glves a remedy, or Lhe performance of whlch Lhe law ln some
way recognlzes a duLy.
A.
Autonomy r|nc|p|e: law empowers people Lo make and recelve enforceable promlses when
Lhe communlcaLe declslon Lo acL or refraln from acLlng ln some deflnlLe way ln Lhe fuLure,
sub[ecL Lo oLher prlnclples.
l.
Secur|ty r|nc|p|e: law requlres each parLy Lo do lLs parL Lo respecL Lhe oLher parLy's
reasonable expecLaLlons and rellance
ll.
Iust|f|cat|on r|nc|p|e: law enforces promlses when prlma facle Lhere are sufflclenL legal
reasons for a courL Lo enforce a promlse
lll.
Ia|rness r|nc|p|e: law refralns from enforclng promlses when Lhe prlma facle [usLlflcaLlon for
enforclng Lhe promlse ls overrldden by conslderaLlons of falrness
lv.
Compensat|on r|nc|p|e: law enforces promlses malnly by compensaLlng non-breachlng
parLles for unavoldable, foreseeable, and reasonably cerLaln harm cause by a breach
v.
h||osoph|ca|]o||cy 8as|s for Contract Law: 8.
Lxpectat|on: anLlclpaLlon LhaL whaL ls promlsed wlll come lnLo exlsLence 1.
ke||ance: a change ln poslLlon/acLlon based on Lhe promlse 2.
kest|tut|on: beneflLs one parLy may recelve aL Lhe expense of Lhe oLher 3.
1he law of conLracLs generally proLecLs 3 lnLeresLs: l.
Compensatory Damages: money pald on compensaLlon because Lhe harm cannoL
necessarlly be flxed or Llme cannoL be alLered. NO1 typlcolly oseJ lo ks.
1.
ueslgned Lo reLurn one Lo Lhe sLaLus quo anLe - Lhelr sLaLe before Lhe k was ever
formed
a)
ke||ance Damages: damages for Lhe harm recelved ln rellance on Lhe duLy 2.
Damages |n k: damages ln k are Lo provlde pteJlctoblllty, totlooollty, and cooslsteocy ll.
Interests & kemed|es: C.
ConLracLs l CuLllne - Mlllch
Outline Page 1
formed
8epresenLs Lhe courL looklng back ln Llme Lo reseL Lhe sLaLe of affalrs b)
ueslgned Lo glve one Lhe poslLlon Lhey would have lf Lhe promlse/k was fulfllled
(anLlclpaLes Lhlngs llke expecLed proflLs, eLc.)
a)
1nl5 l5 1n ulAul1 lN k uAMAC5 b)
Lxpectat|on Damages: damages LhaL would glve Lhe "beneflL of Lhe bargaln" 3.
Lxpress Contract: k manlfesLed by agreemenL ln words, oral or wrlLLen 1.
Imp||ed ContracL: k manlfesLed ln conducL, lmplled ln facL 2.
uas|-Contract: non-conLracLual obllgaLlon lmposed Lo ln Lhe lnLeresL of [usLlce Lo avold
un[usL enrlchmenL, lmplled ln law
3.
8y form: l.
8||atera| Contracts - a promlse for a promlse, offer and accepLance vla exchange of
promlses
1.
Un||atera| Contracts - a promlse for a performance, creaLes Lhe opLlon for an offeree Lo
perform
2.
8y deslred ouLcome: ll.
Cpt|on Contract - a conLracL where Lhe offeror agrees noL Lo revoke for a speclfled
perlod of Llme
1.
SLandard form l)
1ake lL or leave lL ll)
CollaLeral Lerms as lssue, whlch usually favor Lhe creaLor of Lhe form lll)
leaLures: a)
k of oJbesloo ote ptlmo focle vollJ, bot coo eoslly too loto lssoes of ptoceJotol
oocooscloooblllty
b)
8esL.2d 211 c)
k of Adhes|on 2.
Mlscellaneous: lll.
1ypes of Contracts: u.
CIILk & ACCL1ANCL ll.
Mutua| Assent: essenLlal prerequlslLe for k formaLlon, muLual manlfesLaLlon of assenL Lo Lhe
same Lerms
l.
Sub[ect|ve: "Meetloq of tbe MloJs", under Lhls Lheory, Lhe parLles would only form a k
when Lhelr acLual Lrue lnLenLs allgned ln muLual agreemenL, regardless of ouLward
manlfesLaLlons
A.
Cb[ect|ve: "Motool Asseot", under Lhls Lheory, Lhe parLles form a k when Lhelr ouLward,
ob[ecLlve manlfesLaLlons lndlcaLe muLual assenL, regardless of unexpressed lnLenL
8.
Cb[ect|ve v. Sub[ect|ve: courLs hold Lo Lhe Objectlve 1beoty of coottocts ll.
lL Joeso't mottet wbot eltbet potty octoolly belleve, buL raLher whaL a reasonable person
ln Lhelr shoes, wlLh Lhelr knowledge, would Lhlnk
A.
keasonab|e erson Standard: based on Lhe Objectlve 1beoty of coottocts, ob[ecLlve
manlfesLaLlons of lnLenL should be vlewed from Lhe vanLage polnL of a reasonab|e person Lhe
poslLlon of Lhe oLher parLy, lncludlng all Lhelr knowledge and experlence
lll.
lf each parLy has a dlfferenL meanlng of communlcaLlons, generally Lhe meanlng ls
deLermlned by Lhe parLy LhaL dld noL know or have reason Lo know of mulLlple
lnLerpreLaLlons -- kest.2d 201
A.
!oklng ls noL a defense when a reasonable person would belleve lL was a serlous offer. 8.
Intent|on of the art|es: Lhe lnLenLlon of Lhe parLles ls sub[ecL Lo Lhelr ob[ecLlve
manlfesLaLlons and Lhe reasonable person sLandard
lv.
Intent to Contract: 1wo persons cannoL conLracL unless Lhey parLlclpaLe ln a soclol ptoctlce of
conLracLlng. 1he people are bound by Lhe prlnclples, rules, and precedenLs used ln Lhe pracLlce
becoose tbey cbose to pottlclpote and falrness so requlres.
A.
Outline Page 2
!oklng ls noL a defense when a reasonable person would belleve lL was a serlous offer.
Lucy v. Zehmer
8.
re||m|nary Negot|at|ons: A manlfesLaLlon of wllllngness Lo enLer lnLo a bargaln ls noL an offer
lf Lhe person Lo whom lL ls addressed knows, or has reason Lo know, LhaL Lhe person maklng lL
does noL lnLend Lo conclude a bargaln unLll he has made a furLher manlfesLaLlon of assenL.
v.
Lven Lhough a manlfesLaLlon of lnLenLlon ls Lo be undersLood as an offer, lL cannoL
be accepLed Lo form a conLracL unless Lhe Lerms are reasonably cerLaln.
a)
1he Lerms of a conLracL are reasonably cerLaln lf Lhey provlde a basls for
deLermlnlng Lhe exlsLence of a breach and for glvlng an approprlaLe remedy.
b)
1he facL LhaL one or more Lerms of a proposed bargaln are lefL open or uncerLaln
may show LhaL a manlfesLaLlon of lnLenLlon ls noL lnLended Lo be undersLood as an
offer
c)
keasonab|e certa|nty of essent|a| terms 1)
An offer glves Lo Lhe offeree a conLlnulng power Lo compleLe Lhe manlfesLaLlon of
muLual assenL by accepLance of Lhe offer.
a)
Ind|cat|on of f|na| comm|tment]|ntent to be bound 2)
LLLMLN1S: 1.
1he offeror ls Lhe mostet of tbe offet because he ls Lhe one aL rlsk a.
Cfferor can conLrol Lerms of conLracL and mode of accepLance b.
Cfferor |s Master of the Cffer: offeror seLs Lerms, condlLlons, means and mode of accepLance,
and Llme or condlLlons of lapse
2.
1he manlfesLed lnLenLlon of Lhe offeror deLermlnes Lhe person or persons ln whom ls
creaLed a power of accepLance.
a.
lor an offer Lo a unllaLeral k, lL ls sufflclenL for Lhe offeree Lo compleLe
performance wlLh knowledge of Lhe offer
l.
Offetee most be owote of tbe offet b.
An offer may creaLe a power of accepLance ln a speclfled person or ln one or more of a
speclfled group or class of persons, acLlng separaLely or LogeLher, or ln anyone or
everyone who makes a speclfled promlse or renders a speclfled performance.
c.
1o Whom an Cffer |s Addressed 3.
AdverLlsemenLs a.
CaLalogs b.
rlce llsLs or quoLaLlons c.
8aLe sheeLs d.
lnqulrles e.
SLaLemenLs of lnLenLlon, hopes, ore deslres f.
LsLlmaLes g.
Lxpresslon of oplnlons and predlcLlons h.
8l/l18 l.
So||c|tat|ons: prellmlnary negoLlaLlons or requesLs for lnformaLlon are noL Lyplcally consldered
offers even lf Lhey address some essenLlal Lerms. 1he followlng are generally noL consldered
offers:
4.
Cffer: Lhe manlfesLaLlon of wllllngness Lo enLer lnLo a bargaln so made as Lo [usLlfy anoLher person ln
undersLandlng LhaL hls assenL Lo LhaL bargaln ls lnvlLed and wlll conclude lL
8.
C|ear 1)
Unequ|voca| 2)
Uncond|t|ona| 3)
Unvary|ng from the offer 4)
LLLMLN1S: 1.
Acceptance of a 8||atera| k 2.
Acceptance: a volunLary acL of Lhe offeree whereby he exerclses Lhe power conferred by Lhe offer
and Lhereby creaLes a conLracL.
C.
Outline Page 3
An offeree musL accepL an offer for 8llaLeral k ln Lhe manner speclfled ln Lhe offer, Lhls
Lyplcally requlres noLlflcaLlon of Lhe offeror
A.
LkCL1: an accepLance of an opLlon k ls only effecLlve upon recelpL a)
Ma||box ku|e: 8esL.2d 63: a manner of accepLance speclfled by Lhe offer ls effecLlve as
soon as lL leaves Lhe possesslon of Lhe offeree (e.g. puL ln a mallbox)
8.
Where an offeree Lakes Lhe beneflL of offered servlces wlLh reasonable
opporLunlLy Lo re[ecL Lhem and reason Lo know LhaL Lhey were offered wlLh
Lhe expecLaLlon of compensaLlon
l)
1) Where Lhe offer sLaLes accepLance by sllence, and 2) Lhe offeree loteoJs
Lo accepL
ll)
revlous experlence or general buslness pracLlces would make lL reasonable
for sllence Lo be an accepLance
lll)
LkCL1 (Lhls creaLes an lmpllclt or lmplleJ-lo-loct k): a)
Acceptance by S||ence: no response by Lhe offeree ls generally consldered a lack of
accepLance
C.
rompL shlpmenL of conformlng goods (1)
rompL promlse Lo shlp (2)
uCC 2-206 lnvlLes any reasonable form of accepLance ln any reasonable
medlum, Lherefore an offer Lo buy goods ls accepLed by elLher:
l)
Under UCC 2 - Sa|e of Goods a)
Amb|guous kequests: lf an offer ls unclear as Lo wheLher lL requesLs a reLurn promlse of
performance, Lhe offetee may chose Lo accepL ln any reasonable manner
u.
"nome Cff|ce" C|ause: accepLance may be llmlLed Lo approval of a corporaLe offlcer or
home offlce lf sLaLed ln offer -- Lyplcally used for conLracL or commlsslon sales agenLs
L.
Acceptance of a 8||atera| k 2.
An offeree musL accepL by compleLlon of performance requesLed ln offer A.
Cenerally, accepLance by performance does noL requlre noLlflcaLlon, buL lf Lhe
offeree knows LhaL an offeror has no way of knowlng abouL performance, he musL
Lake reasonable measures Lo noLlfy hlm (or Lhe offeror oLherwlse learns of Lhe
performance) or Lhe offeror wlll noL be bound
a)
Mere preparaLlon Joes oot Lrlgger an opLlon k, only beglnnlng of acLual
performance
b)
8rooklyn 8rldge Pypo c)
Start of erformance: upon sLarL of performance, Lhe offer Lo a unllaLeral k becomes
lrrevocable (l.e. an CpLlon k), unLll Lhe offeree abandons performance or a reasonable
Llme passes
8.
Acceptance of a Un||atera| k 3.
Stated 1|me: an offer wlll lapse aL a Llme speclfled ln Lhe offer a)
In person: offers made ln person are generally consldered lapsed aL Lhe end
of Lhe encounLer
l)
keasonab|e 1|me: lf an offer does noL speclfy Lhe Llme of lapse, lL wlll lapse afLer a
reasonable Llme perlod
b)
LkCL1 - M|nor|ty ku|e: an offeror can walve Lhelr Llmeframe Lhrough
subsequenL acLlons -- Lhls ls noL upheld by 8esL.2d
l)
Late Acceptance: once an offer has lapsed, lL no longer exlsLs, so a laLe accepLance
ls generally vlewed as a counLer-offer
c)
Lapse: an offer ceases Lo exlsL upon lapse A.
Death or Incapac|ty of Cfferor: Lhe deaLh or menLal lncapaclLy of Lhe offeror wlll
LermlnaLe an offer prlor Lo accepLance
8.
Lffect|ve upon rece|pt a)
Mu|t|p|e offerees: when a general offer ls puL ouL (e.g. offer of reward), lL ls b)
kevocat|on: generally an offeror can manlfesL an lnLenL Lo revoke aL any Llme prlor Lo
accepLance, regardless of any prevlous sLaLemenLs
C.
1erm|nat|on of the ower of Acceptance 4.
Outline Page 4
Mu|t|p|e offerees: when a general offer ls puL ouL (e.g. offer of reward), lL ls
generally requlred LhaL revocaLlon Lake Lhe same form of mass communlcaLlons of
Lhe orlglnal offer (e.g. 1v ad, newspaper, eLc.)
b)
Ind|rect term|nat|on: an offer ls revoked upon dlrecL expllclL communlcaLlon or
upon Lhe offeree galnlng rellable knowledge LhaL a reasonable person would
undersLand Lo mean Lhe offer was revoked. See ulcklnson v. uodd.
c)
ke[ect|on: Lhe offeree may re[ecL Lhe offer, endlng lL unless lL ls open Lo mulLlple
offerees
d)
M|rror Image ku|e: under common law, an accepLance musL be Lhe mlrror
lmage of Lhe offer
l)
L|m|ted terms: generally a counLer-offer ls assumed Lo hold any Lerms noL
dlscussed Lhe same as Lhe prevlous offer
ll)
Counter-offer: an accepLance LhaL changes or adds Lerms ls consldered Lo re[ecL
Lhe orlglnal offer and make a new one
e)
"Last Shot" r|nc|p|e: Lhe lasL seL of condlLlons on Lhe Lable prlor Lo accepLance
(usually by purchaser) Lyplcally conLrolled Lhe agreemenL ln commerclal
LransacLlons, prlor Lo uCC
a)
After the Iact: any addlLlonal Lerms communlcaLed afLer accepLance are
consldered ptecototy and are mere suggesLlons of a revlslon Lo k
b)
Under Common Law: any change Lo Lerms (maLerlal or lmmaLerlal) ls consldered a
re[ecLlon and counLer -- "M|rror Image" ku|e
A.
Seasonable: wlLhln a reasonable Llmeframe l.
ueflnlLe: cannoL dlverge slgnlflcanLly from essenLlal Lerms (descrlpLlon
of goods, prlce, quanLlLy, dellvery Lerms)
ll.
ll nC = CCun1L8CllL8, ll ?LS, CCn1lnuL lll.
Was Lhe "accepLance" def|n|te and seasonab|e? 1.
2-207 meanL Lo deal w/ lnconslsLenL Lerms, so condlLlon of assenL ls
read oottowly by courLs
l.
ll ?LS=CCun1L8CllL8, ll nC=uLA, CCn1lnuL ll.
ls Lhe "accepLance" express|y cond|t|ona| on assent Lo addlLlonal or
dlfferenL Lerms?
2.
2-207 (1): uoes a deflnlLe expresslon of accepLance (uLA) exlsL Lo accepL offer? a)
nC: 1erms of k per offer. AddlLlonal Lerms ln uLA are slmply
proposed and requlre afflrmaLlve accepLance by offeror.
l.
?LS: CCn1lnuL ll.
Are boLh parLles merchants? 1.
?LS: 1erms of k are per offer. AddlLlonal Lerms removed. l.
nC: CCn1lnuL ll.
uoes Lhe offer express|y ||m|t acceptance Lo Lerms of offer? 2.
A prlmary crlLerlon of maLerlal ls "surprlse." Cenerally a maLerlal
change would resulL ln surprlse or hardshlp lf lncorporaLed w/ouL Lhe
express awareness of Lhe oLher parLy. Atblttotloo ls motetlol lo
mojotlty of cootts.
l.
?LS: 1erms of k are per offer. AddlLlonal Lerms removed. ll.
nC: CCn1lnuL lll.
uo Lhe addlLlonal Lerm mater|a||y a|ter k? 3.
?LS: 1erms of k are per offer. AddlLlonal Lerms removed. l.
Pas not|f|cat|on of ob[ect|on Lo addlLlonal Lerms already been glven or ls
glven wlLhln a reasonable Llme afLer noLlce of Lhem ls recelved?
4.
2-207 (2): lnlLlal Lerms per offer. WhaL happens Lo addlLlonal Lerms ln Lhe uLA? b)
Under UCC: 8att|e of the Iorms -- UCC 2-207: aLLempLed resoluLlon of Lhe "LasL ShoL"
rlnclple by allowlng accepLances LhaL vary from offer. 1be osool fotmot fot 2-207 ls lo
tbe possloq of pte-ptloteJ fotms w/ tetms (l.O. to lovolce to 5blpploq Notlce, etc.).
8.
Acceptance Vary|ng from Cffer 3.
Outline Page 5
?LS: 1erms of k are per offer. AddlLlonal Lerms removed. l.
nC: AddlLlonal Lerms are lncluded ln k. ll.
k estab||shed by conduct. 1yplcally accepLance of ordered goods. 1.
ALL Lerms on whlch parLles agree. l.
knock out all Lerms on whlch parLles d|sagree. use uCC gap-f|||ers
(2-300s) for any lncompleLe or mlsslng Lerms.
ll.
WhaL are Lerms of k? 2.
2-207 (3): WhaL lf Lhere ls never a uLA, and accepLance ls only by conducL? c)
er 2-207(2) lf k by uLA 1.
er 2-207(3) lf k by conducL 2.
ost-k Conf|rmat|ons: wrlLLen Lerms on forms or communlcaLlons afLer k ls
formed. under uCC, Lerms are sub[ecL Lo
d)
erfect 1ender ku|e: UCC: goods musL maLch/conform Lo llsLed speclflcaLlons ln offer C.
Lxample: 10 year commerclal lease w/ renL flxed for 3 years and Lo be deLermlned for
Lhe flnal 3
A.
SoluLlon: besL Lo make k self-execuLlng by havlng Lhe unsLaLed Lerm refer or become
deLermlned by a 3rd parLy sLandard -- avold glvlng one slde a hldden opLlon k by bad
drafLlng
8.
art|es agree to k w|th some terms |eft to future: Lhls ls done someLlme Lo accounL for prlce
volaLlllLy, lnflaLlon, eLc.
1.
Good Ia|th: all conLracLs carry an lmplled duLy of good falLh, whlle general negoLlaLlons
do noL
A.
art|es agree to negot|ate: Lhls ls done ln blg deals LhaL Lake monLhs. See 1urner. 8easons
lnclude confldenLlallLy, excluslvlLy, dlsclosure, good falLh, sLandard of conducL, cosL share,
LermlnaLlon, Llme frame, sLand sLlll, deLermlne form of flnal approval, eLc. usually k wlll Lake
form of LeLLer of lnLenL.
2.
art|es agree to forma||ze |n future: ln splLe of lnLenL, ob[ecLlve formaLlon crlLerla sLlll apply.
lf parLles resolve all essenLlal Lerms and manlfesL assenL, Lhey wlll sLlll be bound wlLhouL a
formal lnsLrumenL. See Arnold almer.
3.
Incomp|ete Agreements u.
S1A1U1L CI IkAUDS lll.
rovldes evldenLlary funcLlon for lmporLanL ks 1.
Crlglnally lnLended as a means of llmlLlng fraud and per[ury for oral ks 2.
Covered now by SLaLe sLaLuLes 3.
Any modlflcaLlons, changes, or addlLlons Lo a k covered under sLaLuLe of frauds are also
sub[ecL Lo Lhe same provlslons and requlremenLs of wrlLlng
4.
CnL? used as a Jefeose agalnsL an exlsLlng agreemenL ln cases of breech or speclflc
performance.
3.
uoes Lhe k fall wlLhln Lhe SLaLuLe of lrauds? 1)
ls Lhere a wrlLlng LhaL saLlsfles Lhe SLaLuLe of lrauds? 2)
Usage as Defense: 6.
Def|ned: SLaLuLe of lrauds provldes LhaL agreemenLs for cerLaln Lypes of conLracLs are noL
enforceable unless memorlallzed ln a slgned wrlLlng.
A.
A promlse by an execuLor/admlnlsLraLor of esLaLe Lo pay debLs of esLaLe from hls own funds
(execuLor-admlnlsLraLor provlslon)
1.
A promlse Lo answer for Lhe duLy, debL, defaulL, or mlscarrlage of anoLher (sureLyshlp
provlslon)
2.
LxCL1: does noL cover muLual promlses Lo marry
An agreemenL made ln conslderaLlon of marrlage (marrlage provlslon) 3.
Under Common Law (now superseded by SLaLe sLaLuLes): 8.
Outline Page 6
LxCL1: does noL cover muLual promlses Lo marry
Any k for Lhe sale of land or an lnLeresL ln land (land conLracL provlslon) 4.
Any agreemenL LhaL ls noL Lo be performed w/ln 1 year of formaLlon (one-year provlslon) 3.
lf Lhe goods are speclally manufacLured for Lhe buyer and are noL sulLable for sale
Lo oLhers ln Lhe ordlnary course of seller's buslness and subsLanLlal beglnnlng of
manufacLure occurs before repudlaLlon
a)
lf admlLs (ln courL, pleadlngs, deposlLlons, eLc.) a k for sale was made b)
k for whlch paymenL made and accepLed C8 goods recelved and accepLed c)
LkCL1: 1)
Sale of goods for Lhe prlce of $300 or more 1.
WrlLLen or pre-prlnLed documenLs of any klnd wlll saLlsfy uCC so long as Lerms and
quanLlLy of goods ls llsLed -- even lf some Lerms are lncorrecL
1)
Any Lype of noLaLlon lnLended Lo auLhenLlcaLe source wlll sufflce for slgnaLure
requlremenL. L.g. buslness leLLerhead, name/address sLamp, emall "slgnaLure", eLc.
2)
WrlLLen conflrmaLlon afLer formaLlon counLs, 1) beLween merchanLs, 2) when recelved
wlLhln a reasonable Llme, and 3) noLlce of ob[ecLlon ls noL glvlng wlLhln 10 days afLer
recelpL
3)
Iorm of wr|t|ng requ|red: 2.
Under UCC 2-201: C.
A promlse Lo answer for Lhe debL, defaulL, or mlscarrlage of anoLher 1.
Any conLracL for Lhe sale of lands, or any lnLeresL ln, or concernlng lands 2.
Any agreemenL LhaL ls noL Lo be performed wlLhln one year from Lhe maklng Lhereof 3.
Any promlse Lo revlve a debL barred by a sLaLuLe of llmlLaLlon 4.
Any promlse Lo lend money 3.
When Lhe conLracL has been fully execuLed 1)
When Lhere has been performance on one slde, accepLed by Lhe oLher ln accordance
wlLh Lhe conLracL
2)
When Lhere has been such parL performance of Lhe conLracL as would render lL a fraud
of Lhe parLy refuslng Lo comply lf Lhe courL dld noL compel performance
3)
LkCL1: 6.
Under GA Statute: CCGA 13-S-30: u.
CCNSIDLkA1ICN lv.
naked romlse: nudum pacLum, promlse unsupporLed by conslderaLlon (l'll glve you
$100 for your 8-day)
1)
CraLulLous romlse: promlse wlLh noLhlng ln reLurn 2)
lllusory romlse: a Lerm for a falled (lllusory) conslderaLlon, where Lhere ls no way Lo
deLermlne breach
3)
Def|n|t|ons: 1.
rom|ses for g|fts are not enforceab|e at |aw 2.
lL ls lmporLanL Lo dlsLlngulsh a glfL wlLh lnsLrucLlons on how Lo recelve from a bargalned for
exchange. P?C: Jooqbtet ttovels to Nc to see esttooqeJ uoJ ooJ qet 1lffooy's - ftom closs
3.
rom|ses & G|fts: CourLs wlll noL enforce Lrlvlal, lnconsequenLlal, or naked promlses. CourLs are
concerned wlLh commerce, Lherefore an enforceable promlse musL have an exchange.
A.
Cons|derat|on, Lhen lf lacklng -- legal remedy 1.
rom|ssory Lstoppe| (8ellance), Lhen lf lacklng -- equlLable remedy 2.
Un[ust Lnr|chment -- equlLable remedy 3.
Crder of Lnforcement: when Lrylng Lo enforce a promlse, sLarL wlLh Lhe legal remedy of
conslderaLlon, Lhen look Lo equlLable remedles. Lxample:
8.
Outline Page 7
Lega| Detr|ment: dolng someLhlng (acL) or promlslng someLhlng you have a legal rlghL noL Lo
do C8 refralnlng from (forebear) or promlslng Lo refraln from dolng someLhlng you have a
legal rlghL Lo do
1.
8arga|ned for Lxchange: A performance or reLurn promlse bargalned for lf lL ls soughL by Lhe
promlsor ln exchange for hls promlse and ls glven by Lhe promlsee ln exchange for LhaL
promlse. 1he performance may conslsL of: an acL oLher Lhan a promlse, a forbearance, or Lhe
creaLlon, modlflcaLlon, or desLrucLlon of a legal relaLlon -- kest.2d 71
2.
Cons|derat|on ls a barga|ned for exchange of |ega| detr|ment beLween parLles. C.
ast Cons|derat|on: pasL conslderaLlon ls NC conslderaLlon, can noL rely on a deLrlmenL ln Lhe
pasL as conslderaLlon
1.
re-Lx|st|ng Duty: performance of a legal duLy owned Lo a promlsor whlch ls nelLher doubLful
nor Lhe sub[ecL of honesL dlspuLe ls not conslderaLlon See Levlne -- kest.2d 73
2.
Lhe clalm ls doubLful because of uncerLalnLy as Lo facLs or law 1)
Lhe forbearlng parLy reasonably belleves Lhe clalm ls valld (moJe lo qooJ foltb) 2)
LxecuLlon of a wrlLLen lnsLrumenL surrenderlng clalm by a parLy under no duLy Lo do so
|s conslderaLlon even lf he belleves clalm would noL be valld and/or ls noL asserLlng lL.
See uyer -- kest.2d 74
3)
Sett|ement of C|a|ms (Accord and Sett|ement Agreement): forbearance Lo asserL or surrender
of a clalm ls not conslderaLlon lf Lhe clalm ls lnvalld, unless:
3.
Sham]Nom|na| ("peppercorn") Cons|derat|on: addlng a nomlnal amounL as
"conslderaLlon" ln an aLLempL Lo cloak a promlse of a glfL as a k does not provlde
conslderaLlon See Schnell
1)
Nom|na| Cons|derat|on for Cpt|on k: courLs are much more lenlenL on nomlnal
conslderaLlon glven Lo exerclse an opLlon k
2)
Adequacy of Cons|derat|on: courLs generally do noL lnqulre as Lo Lhe adequacy of
conslderaLlon or Lhe relaLlve values of deLrlmenLs. 1he assumpLlon ls lf Lhe parLy bargalned for
Lhe exchange, Lhen lL ls of sufflclenL value Lo Lhem. Cross lnadequacy of a bargaln ls a slgn LhaL
duress, undue lnfluence, or un[usL enrlchmenL mlghL be presenL. See Pammer, 8aLsakls --
kest.2d 79
4.
Cond|t|ona| rom|ses: a condlLlonal promlse ls noL conslderaLlon lf Lhe promlsor knows
aL Lhe Llme of maklng Lhe promlse LhaL Lhe condlLlon cannoL occur -- kest.2d 76
1)
Lach of Lhe alLernaLlves performances would be conslderaLlon alone a)
Cne of Lhe alLernaLlves would be conslderaLlon Anu Lhere ls or appears Lo Lhe
parLles Lo be a subsLanLlal posslblllLy LhaL before Lhe promlsor exerclses hls cholce
evenLs may ellmlnaLe Lhe alLernaLlves whlch would noL have been conslderaLlon
b)
rom|ses of A|ternat|ve erformances: 2)
Lxample: promlse Lo pay you $100 lf l feel llke lL, or promlse Lo glve over a
helrloom lf l belleve Lhe reclplenL ls maLure enough (see below)
a)
Wood v. Lucy: dlsLrlbuLor llcensed famous name and k Lo spllL proflLs, buL lL
carrles w/ lL Lhe lmplled Joty to ose best effotts
1.
lrom above: promlse on bellef of maLurlLy ls conslderaLlon lf moJe lo qooJ
foltb
2.
Imp||ed terms: some lllusory or lndeflnlLe promlses can be made conslderaLlon
wlLh Lhe lncluslon of lmplled Lerms. Lxamples:
b)
I||usory rom|ses: a promlse LhaL only appears Lo be conslderaLlon, leovloq oo woy to
ptove bteocb.
3)
rom|ses as Cons|derat|on: generally, a promlse whlch ls bargalned for |s conslderaLlon lf, buL
only lf, Lhe promlsed performance would be conslderaLlon -- kest.2d 7S
3.
Ia||ures of Detr|ment and Cons|derat|on u.
Under Common Law: musL lnclude all requlremenL of a new k, lncludlng conslderaLlon. lf 1.
Mod|fy|ng Lx|st|ng Contracts L.
Outline Page 8
lf Lhe modlflcaLlon ls falr and equlLable ln vlew of clrcumsLances noL anLlclpaLed by
Lhe parLles when Lhe conLracL was made, or
a)
Lo Lhe exLenL provlded by sLaLuLe, or b)
Lo Lhe exLenL LhaL [usLlce requlres enforcemenL ln vlew of maLerlal change of
poslLlon ln rellance on Lhe promlse.
c)
kest.2d 89: A promlse modlfylng a duLy under a conLracL noL fully performed on elLher
slde ls blndlng
1)
Under Common Law: musL lnclude all requlremenL of a new k, lncludlng conslderaLlon. lf
orlglnal k falls under SLaLuLe of lrauds, modlflcaLlons musL also be ln wrlLlng.
1.
An agreemenL modlfylng a k governed by uCC DCLS NC1 requlre conslderaLlon Lo be
blndlng
1)
An agreemenL ln a slgned record whlch excludes modlflcaLlon or resclsslon excepL by a
slgned record may noL be oLherwlse modlfled or resclnded, buL except as between
merchants such a requlremenL ln a form supplled by Lhe merchanL musL be separaLely
slgned by Lhe oLher parLy.
2)
1he requlremenLs of SLaLuLe of lrauds (2-201) musL be saLlsfled lf Lhe conLracL as
modlfled ls wlLhln lLs provlslons.
3)
Under UCC 2-209: 2.
Under Common Law: An opLlon k holds open an offer for a pre-deLermlned amounL of Llme.
Lnforcement of an Cpt|on k requ|res cons|derat|on. 1herefore, wlLhouL separaLe
conslderaLlon, a promlse Lo hold open an offer ls nC1 enforceable and offeror can revoke aL
any Llme prlor Lo accepLance.
1.
ls ln wrlLlng Anu slgned by Lhe offeror, reclLes a purporLed conslderaLlon for Lhe
maklng of Lhe offer, and proposes an exchange on falr Lerms wlLhln reasonable
Llme jcommoo low tepoltemeots]
a.
ls made lrrevocable by sLaLuLe jsee ucc 2-205] b.
An offer ls blndlng as an opLlon conLracL lf lL 1)
An offer whlch Lhe offeror should reasonably expecL Lo lnduce acLlon or forbearance of a
subsLanLlal characLer on Lhe parL of he offeree before accepLance and whlch does lnduce
such acLlon or forbearance ls blndlng as an opLlon conLracL Lo Lhe exLenL necessary Lo
avold ln[usLlce juollotetol k -- 8tooklyo 8tlJqe ooswet]
2)
kest.2d 87 - Cpt|on Contract 2.
Cffer by merchant 1)
S|gned wr|t|ng (same "slgned" sLandard as uCC SLaLuLe of lrauds) 2)
1erms g|ve assurance that |t w||| not be revoked 3)
no conslderaLlon requlred a)
Cood for Llme sLaLed 8u1 may noL exceed 3 monLhs b)
lf form supplled by offeree, musL be slgned separaLely or lnlLlaled on offer clause c)
AddlLlonal: 4)
I|rm offer - UCC 2-20S: Lhe purpose ls Lo glve effecL Lo dellberaLe lnLenLlon of merchanL Lo
make a currenL flrm offer blndlng wlLh an lndlvlduallzed slgned documenL or slgned clause ln
form. 1bls teploces cooslJetotloo wltb slqoeJ wtltloq. kequ|res:
3.
Cpt|on k l.
Cutput: allows a seller Lo k for Lhe sale of all produced goods Lo a buyer for a perlod of Llme 1.
kequ|rements: allows a buyer Lo k for Lhe sale of all requlred goods from a seller for a perlod
of Llme
2.
keasonab|e quant|ty: no quanLlLy unreasonab|y d|sproport|onate Lo any sLaLed
esLlmaLe or any normal or oLherwlse comparable prlor ouLpuL or requlremenLs my be
Lendered or demanded
1)
kequ|res good fa|th 3.
Cutput & kequ|rements ks - UCC 2-306: provldes a way around a k falllng for lndeflnlLeness by noL
sLaLlng a quanLlLy of goods. LffecLlvely replaces Lhe Lerm of quanLlLy wlLh a Llme frame.
C.
Outline Page 9
Lendered or demanded
M|n]Max: any agreed mln/max llmlLs are blndlng and show lnLenL of allowable elasLlclLy 2)
Lxc|us|ve dea||ngs: k by elLher parLy for excluslve deallngs requlres seller Lo use best
efforts Lo supply and buyer Lo use best efforts Lo promoLe Lhelr sale
3)
P?C: !eL luel k for alrllne Lurned reseller from class 4.
Non-Un|on Wr|tten k: employmenL vla wrlLLen k ls a bllaLeral k governed by common law of k
as may be amended or modlfled by SLaLe sLaLuLe
1.
Un|on k: employmenL for members vla unlon k ls governed by lederal and SLaLe sLaLuLe
compleLely, nC1 by common law of ks
2.
AL-Wlll employmenL ls ma[or|ty among SLaLes 1)
lorbearance of LermlnaLlon by employer ls sufflclenL deLrlmenL Lo acL as conslderaLlon
for change ln Lerms of employmenL
2)
romlses by employers for future acLs are |||usory for lack of conslderaLlon 3)
lf elLher parLy wanLs Lo change Lerms, Lhey could flre/qulL aL end of day, Lhen
renegoLlaLe new Lerms
4)
P?C: Cuy hlred and Lold ralse afLer 7 monLhs, flred aL 6 monLhs -- from class 3)
At-W||| Lmp|oyment: employmenL aL wlll ls a un||atera| k w|th cons|derat|on renewed da||y.
1he employer promlses Lo pay (lncludlng any beneflLs) and Lhe employee performs.
3.
Lmp|oyment ks P.
kCMISSCk LS1CLL v.
Def|ned: when a parLy relles on a promlse Lo Lhelr deLrlmenL. Means of enforclng promlse wlLhouL
conslderaLlon.
A.
rom|se 1.
rom|sor shou|d reasonab|y expect wou|d |nduce re||ance 2.
Upon wh|ch prom|see reasonab|y re||es 3.
1o prom|see's detr|ment 4.
In[ust|ce on|y avo|ded by grant|ng re||ef 3.
LLLMLN1S: 8.
A promlse whlch Lhe promlsor should reasonably expecL Lo lnduce acLlon or forbearance on
Lhe parL of Lhe promlsee or a Lhlrd person and whlch does lnduce such acLlon or forbearance ls
blndlng lf ln[usLlce can be avolded only by enforcemenL of Lhe promlse. 1he remedy granLed
for breach may be llmlLed as [usLlce requlres.
1.
A charlLable subscrlpLlon or a marrlage seLLlemenL ls blndlng under subsecLlon (1) wlLhouL
proof LhaL Lhe promlse lnduced acLlon or forbearance.
2.
kest.2d 90 - rom|se keasonab|y Induc|ng Act|on of Iorbearance, a|so CCGA 13-3-44 C.
red|ct|ons: sLaLemenLs of predlcLlon, expresslon of asplraLlon, or puffery of a salesman A8L nC1
promlses and are noL Lo be reasonably relled upon. See Carwood acklng Co.
u.
kemedy: re||ance damages (reLurn Lo sLaLus quo anLe) L.
nC: See uevecmon (holdlng k enforceable on rellance when nephew Lraveled Lo Lurope on
uncle's promlse Lo pay), lelnberg (holdlng promlse of penslon paymenL by board enforceable when
former employee reLlred early based on paymenL and can no longer work).
l.
Def|ned: aka 8esLlLuLlon, Cuasl-k, quanLum merulL (as much as ls deserved). k lmplled ln law. non-
conLracLual obllgaLlon lmposed Lo ln Lhe lnLeresL of [usLlce Lo avold un[usL enrlchmenL. Means of
enforclng and obllgaLlon even when clearly no k was ever formed.
A.
8enef|t conferred 1.
At other's expense 2.
Not gratu|tous 3.
Not off|c|ous 4.
LLLMLN1S: 8.
UNIUS1 LNkICnMLN1 vl.
Outline Page 10
Not off|c|ous 4.
Iust|ce requ|res re||ef 3.
Lqu|ty: equlLy was creaLed Lo solve lssue llke un[usL enrlchmenL. 1o rlghL a wrong where Lhese ls no
remedy under law.
C.
A promlse made ln recognlLlon of a beneflL prevlously recelved by Lhe promlsor from Lhe
promlsee ls blndlng Lo Lhe exLenL necessary Lo prevenL ln[usLlce
1.
lf Lhe promlsee conferred Lhe beneflL as a glfL or for oLher reasons Lhe promlsor has noL
ben un[usLly enrlched, or
1)
1o Lhe exLenL LhaL lLs value ls dlsproporLlonaLe Lo Lhe beneflL. 2)
A promlse ls noL blndlng under SecLlon (1) 2.
kest.2d 86 - rom|se for 8enef|t kece|ved u.
kemedy: the LLSSLk of 1) cost of benef|t or 2) va|ue of benef|t L.
nypo: veL flnds and heals losL dog Lhen wanLs paymenL -- from class. l.
AVCIDANCL & kLICkMA1ICN vll.
Def|ned: any wrongful acL or LhreaL whlch overcomes Lhe free wlll of parLy consLlLuLes
duress. Means of avoldlng k by parLy glvlng assenL under duress.
1.
Improper threat 1)
So sever as to [ust|fy cap|tu|at|on 2)
1hreat caused assent to k or k mod|f|cat|on 3)
LLLMLN1S: 2.
Crlmlnal or LorLlous acLlvlLy 1)
1hreaL of crlmlnal prosecuLlon 2)
use of clvll procedure ln bad falLh 3)
8ad falLh LhreaL Lo avold pre-exlsLlng duLy 4)
Improper threats: 3.
1oughen up: 1he law expecLs people Lo have a splne and sLand up for Lhelr rlghLs, calllng
bluffs lf you Lhlnk lL ls a bluff. uotess ls ooJ sboolJ be botJ to ptove. lmproper LhreaLs musL be
Lruly severe and Lhey musL be Lhe 8LASCn for assenL. LnLered lnLo lL wlLh relucLance, k ls very
dlsadvanLageous, bargalnlng power of Lhe parLles was unequal, or presence of unfalrness ln
negoLlaLlons uCLS nC1 cuL lL.
4.
1h|rd-party |mproper threat: k ls voldable by vlcLlm of a 3rd parLy's duress UNLLSS Lhe oLher
parLy Lo Lhe LransacLlon ln good falLh and wlLhouL reason Lo know of Lhe duress elLher glves
value or relles maLerlally on Lhe LransacLlon -- kest.2d 17S
3.
Duress v. re-Lx|st|ng Duty: under older common law, pre-exlsLlng duLy was used Lo pollce ks
for duress, exLorLlon, and coerclon vla docLrlne of conslderaLlon. 1bls oo looqet tbe cose.
Modern duress replaces Lhls, asklng lf a k or modlflcaLlon was made ln good falLh.
6.
kemedy: avo|dab|e by v|ct|m 7.
nC: see Alaska flshermen case 8.
Duress A.
Def|ned: unfalr persuaslon of a parLy who ls under Lhe domlnaLlon of anoLher by vlrLue of a
prlvlleged or longsLandlng relaLlonshlp beLween Lhem. Means of avoldlng k by parLy glvlng
unduly lnfluenced.
1.
A reasonab|y expects that 8 w||| |ook out for A's |nterests 1)
A has a h|story of dependency on 8 2)
8 persuades A to enter k 3)
k |s unfa|r to A 4)
LLLMLN1S: 2.
LxecuLor-esLaLe 1)
I|duc|ary Duty: speclal relaLlonshlp LhaL by lLs naLure one parLy can reasonably LrusL LhaL Lhe
oLher parLy has a duLy Lo LrusL and confldence [auLomaLlcally fulfllls elemenL 1]. L.g.:
3.
Undue Inf|uence 8.
Outline Page 11
LxecuLor-esLaLe 1)
Cuardlan-ward 2)
uocLor-paLlenL 3)
Lawyer-cllenL 4)
S|gnature: hlsLory of dependency Lhen beLrayal 4.
Much rarer Loday Lhan prevlously, and hard Lo prove 3.
8esL.2d 177 6.
kemedy: avoldable by vlcLlm 7.
nC: uC lawyer dlvorce case -- from class 8.
Def|ned: when parLles acL on bellefs LhaL are noL ln accord wlLh facLs exlsLlng aL Lhe Llme of
conLracLlng. Means of avoldlng k when Lhere ls muLual mlsLake as Lo baslc assumpLlons.
1.
Mutua| m|stake Ck un||atera| m|stake where unconsc|onab|e or other party had
reason to know of m|stake or caused |t (mlstoke of focts NO1 joJqmeot)
1)
At t|me of k 2)
M|stake as to bas|c assumpt|on of k 3)
Mater|a| effect 4)
d|d not assume r|sk 3)
No |nnocent party wou|d suffer due to resc|ss|on 6)
LLLMLN1S: 2.
M|stake: bellef LhaL ls noL ln accord wlLh Lhe facLs -- kest.2d 1S1 3.
Due D|||gence kequ|red: lack of reasonably prudence, negllgence, or lnsufflclenL due dlllgence
ls nC1 a reason for mlsLake and wlll deny clalm ln equlLy
4.
Contractua| Assumpt|on of k|sk: assumpLlon of rlsk ls parL of Lhe Lerms of Lhe k 1)
M|stake by Custom: when a parLy enLers k aware of llmlLed knowledge, Lhen Lhey
assume rlsk LhaL Lhe lack of knowledge could harm Lhem
2)
Assumpt|on of k|sk (e|ement S): 3.
MlsLake ls of such consequence LhaL enforcemenL would be unconsclonable a)
MlsLake musL relaLe Lo Lhe subsLance of Lhe conslderaLlon b)
MlsLake musL have occurred regardless of Lhe exerclse of ordlnary care c)
lL musL be posslble Lo place Lhe oLher parLy ln sLaLus quo d)
8ldder musL glve prompL noLlflcaLlon of mlsLake and lnLenL Lo wlLhdraw e)
ln CA, conLracLor can resclnd from a unllaLeral mlsLake ln blddlng when: 1)
See llrsL 8apLlsL Church of MoulLrle
8|ds: ofLen bld prlces are consldered [udgmenL (noL facL), excepL for clerlcal error 6.
Mlstoke ls oocommoo ooJ blqb stooJotJ of ptoof (cleot ooJ coovlocloq) 7.
8esL.2d 131-38 8.
kesc|ss|on: k avoldable by elLher parLy lf muLual mlsLake or mlsLaken parLy lf unllaLeral 1)
k does noL maLch muLual agreemenL (agreed Lo x, k says ?) a)
uue Lo muLual mlsLake b)
keformat|on: requlres boLh 2)
kemedy: 9.
nC: See SCl Mlnn. luneral Servs. (mlsLake clalm falled ln sLock sale of corp.) 10.
M|stake C.
M|srepresentat|on Ck fraudu|ent conduct 1)
Sc|enter Ck mater|a| 2)
keasonab|e re||ance 3)
Actua| harm 4)
LLLMLN1S: 1.
M|srepresentat|on: an asserLlon LhaL ls noL ln accord wlLh Lhe facLs. MlsrepresenLaLlon ls k
law verslon of fraud ln LorL.
2.
Iraudu|ent Conduct: lles or acLlve decelL 3.
M|srepresentat|on u.
Outline Page 12
Iraudu|ent Conduct: lles or acLlve decelL 3.
Sc|enter: lnLenL Lo decelve 1)
Mater|a|: asserLlon LhaL would lnduce a reasonable person Lo manlfesL assenL 2)
Innocent M|srepresentat|on: slnce mlsrepresenLaLlon requlres sclenLer C8 maLerlal
mlsrepresenLaLlon, !""#$%"& (!)*%+*%)%"&,&!#" !) ,$&!#",-.%. Llkewlse, [usL because you were
lled Lo uCLS nC1 MLAn ?Cu WlLL 8LvAlL.
4.
Act|ve Concea|ment: acLlon lnLended or known Lo be llkely Lo prevenL anoLher from learnlng a
facL ls equlvalenL Lo an asserLlon LhaL Lhe facL does noL exlsL (l.e. fraudulenL conducL)
3.
MlsrepresenLaLlon noL dlscoverable Lhrough due dlllgence, Ck 1)
ConfldenLlal relaLlonshlp exlsLs beLween buyer and seller (e.g. flduclary) 2)
Pe knows dlsclosure of Lhe facL ls necessary Lo prevenL a prevlous asserLlon from
belng a mlsrepresenLaLlon
a)
Pe knows dlsclosure would correcL a mlsLake of Lhe oLher parLy as Lo a baslc
assumpLlon of k + fallure Lo acL ln good falLh
b)
Pe knows dlsclosure would correcL a mlsLake of Lhe oLher parLy as Lo Lhe conLenL
or effecL of wrlLlng, evldenclng , or embodylng an agreemenL
c)
Where oLher parLy ls enLlLled Lo know due Lo relaLlon of LrusL and confldence
beLween Lhem
d)
AlLernaLlvely, per kest.2d 161 -- Non-D|sc|osure = M|srepresentat|on when: 3)
ass|ve Concea|ment (Non-D|sc|osure): noL acLlonable as mlsrepresenLaLlon, unLLSS: 6.
Duty to Correct: parLles have a duLy Lo correcL facLual mlsLakes w/ln a reasonable Llme of
becomlng aware of Lhem lf Lhe k ls noL flnallzed
7.
SLaLemenL of oplnlon lmplles a basls for asserLlon, 1PL8lC8L, 1)
lf, aL Lhe Llme Lhe person gave oplnlon, Lhey knLW Lhey dld noL have a basls for saylng lL,
or knew lL Lo be false, Lhen Lhe oplnlon would be a mlsrepresenLaLlon -- kest.2d 168
2)
Where a relaLlon of LrusL and confldence exlsLs beLween parLles a)
Where oplnlon comes from someone who ls or clalms Lo be an experL b)
Where oplnlon comes from someone w/ superlor access Lo knowledge of facLs c)
Where oplnlon comes form a supposedly dlslnLeresLed 3rd parLy (e.g. forged
appralser's reporL)
d)
AlLernaLlvely, per kest.2d 161, oplnlons MlCP1 be rellable as asserLlons when: 3)
Cp|n|on: noL acLlonable as mlsrepresenLaLlon (goes Lo reasonable rellance), 8u1: 8.
Condu|t 1heory: lf a parLy slmply passes on lnformaLlon, Lhey are sLlll llable for poLenLlal
mlsrepresenLaLlon or mlsLake ln Lhe lnformaLlon
9.
kesclssloo oo qtoooJs of mlstepteseototloo stlll ovolloble w/ metqet cloose becoose
ftooJ vltlotes evetytbloq lt toocbes
1)
lf Lhere ls a merger clause, no LorL remedy ls avallable due Lo havlng Lo embrace whole k
Lo prove LorL. See Pawallan flower farmer case from class.
2)
Merger C|ause: clause ln k sLaLlng LhaL Lhe wrlLlng conLalns Lhe enLlre k and LhaL no
represenLaLlons oLher Lhan Lhose conLalned ln Lhe wrlLlng have been made.
10.
rom|ssory Iraud: lf aL Lhe Llme of Lhe promlse, Lhe promlsor never had any lnLenLlon of
performlng, Lhere can be a clalm for mlsrepresenLaLlon
11.
Under UCC 2-721: parLy can seek resclsslon Anu consequenLlal damages 1)
kemedy: only remedy for mlsrepresenLaLlon ls resc|ss|on 12.
Unconsc|onab|||ty Doctr|ne: purpose of docLrlne ls Lo prevenL oppress|on (subsLanLlve
unconsclonablllLy) and unfa|r surpr|se (procedural unconsclonablllLy) by lnvalldaLlng some or
all of a k LhaL lL ls one-slded or does noL provlde any meanlngful cholce Lo one parLy.
1.
5boolJ AlwA5 be o solotloo to ptoceJotol oocooscloooblllty a)
8eason for 72 hour coollng-off perlods, Lo allow less sophlsLlcaLed parLy Lo seek b)
rocedura| Unconsc|onab|||ty (know|edge): fallure of Lhe lnsLrumenL Lo convey Lerms of
Lhe deal, l.e. fallure Lo communlcaLe
1)
1ypes: 2.
Unconsc|onab|||ty L.
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8eason for 72 hour coollng-off perlods, Lo allow less sophlsLlcaLed parLy Lo seek
advlce
b)
usually even ln splLe of a duLy Lo read, l.e. parLy read documenL buL was sLlll
unaware or mlsundersLood Lerms
c)
Substant|ve Unconsc|onab|||ty (cho|ce): onerous Lerms LhaL "shock Lhe consclous of Lhe
courL"
2)
unconsclonable ls "LhaL whlch affronLs Lhe sense of decency" 3.
UCC 2-302 allows Lhe courL Lo rule dlrecLly on unconsclonablllLy and elLher refuse Lo enforce
k or remove unconsclonable clause ln k. arLles are allowed Lo presenL evldence as Lo lLs
commerclal seLLlng, purpose, and effecL Lo ald Lhe courL's deLermlnaLlon. kest.2d 208
mlrrors Lhe uCC pollcy.
4.
nypo: see 1oker (unconsclonable prlce on refrlgeraLor), Wllllams (unconsclonable renL-Lo-own
paymenL provlslons ln uC furnlLure sLore).
3.
kemedy: resc|ss|on or non-enforcement of unconsclonable Lerm 6.
CAACI1 1C CCN1kAC1 vlll.
ollcy: ln uS, Lhere ls a Clvll 8lghL Lo k -- lreedom Lo ConLracL 1.
ollcy: selecLlvely removlng some people from k for Lhelr proLecLlon would make oLher
unwllllng Lo k wlLh Lhem aL all -- creaLlng anoLher class of clLlzen w/ouL economlc rlghLs
2.
Def|ned: some groups of people, on Lhe basls of competency, are noL allowed Lo legally enLer ks for
Lhelr own and socleLy's proLecLlon
A.
Age of ma[orlLy ln uS ls 18 1)
LxcepL for alcohol and gambllng (ln some locaLlons) 2)
ku|e: No one under age of ma[or|ty can enter |nto an enforceab|e k 1.
LxcepL: lf k formed as a mlnor, Lhen honored for a reasonable Llme afLer ma[orlLy, Lhe k
ls rat|f|ed -- no longer avoldable
1)
Avo|dance: A k made w/ mlnor ls avo|dab|e by mlnor lf Lhey choose Lo resclnd 2.
no duLy Lo compensaLe for use or damage Lo lLem sub[ecL Lo vold k of mlnor 1)
normally, duLy of resLoraLlon would requlre compensaLlon 2)
kestorat|on: lf k avolded, mlnor has duLy Lo resLore lLem (e.g. boughL a car) 3.
Age ls a 8r|ght L|ne 1est whlch ls easy Lo deLermlne, Lherefore courLs are harsh on offenders. 4.
ue mlnlmus rule: lnexpenslve and slmple lLems are excepLed 3.
LxcepLlons ln many saLes for necesslLles, buL problemaLlc Lo lmplemenL 6.
Infant Incapac|ty (M|nors) 8.
Law seLs a vety blqb stooJotJ because consumpLlon ls volunLary 1)
Llkewlse, explolLlng slde ls Lyplcally LreaLed harshly because of obvlous lmpalrmenL 2)
1emporary |ncapac|ty due to |ntox|cat|on 1.
uue Lo age and lnflrmlLy -- famlly geLs courL order and comes w/ guardlan or
conservaLor
a)
uue Lo accldenL or severe menLal reLardaLlon -- usually rolllng Lemporary orders
w/ hope of lmprovemenL
b)
erson can be declared menLally lncompeLenL by courL, Lyplcally: 1)
5tooJotJ ls blqb Lo avold excludlng people from markeL -- should be obvloos to loy
petsoo LhaL someone has severe lmpalrmenL
2)
rofound cogn|t|ve |mpa|rments 2.
uue Lo psychologlcal or physlcal abnormallLles, Lhe person knows whaL Lhey are dolng
buL can'L help/change Lhelr acLlons (e.g. blpolar, depresslon, eLc.)
1)
vety coottovetslol Lo llLlgaLe -- courLs have no consensus 2)
lncapaclLy ls a maLLer of degree ln Lhese cases 3)
Vo||t|ona| Incapac|ty 3.
Incapac|ty due to Menta| Impa|rment: C.
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lncapaclLy ls a maLLer of degree ln Lhese cases 3)
Pypo: blpolar boughL !aguar and horse w/ Lraller -- from class 4)
LNICkCLA8ILI1 AS U8LIC CLIC lx.
lf 1 parLy ls engaged ln lllegallLy, lL makes a voldable k for Lhe oLher parLy 1)
AdmlnlsLraLlve "lllegallLles" do noL vold a k (e.g. lawyer dldn'L pay bar dues, eLc.) 2)
ku|e: k for |||ega| goods or serv|ces, or based on |||ega| act|ons, are vo|d op |n|t|o (from Lhe
sLarL)
1.
I||ega| Contracts A.
Sub[ect must NC1 have had |eg|s|at|ve act|on, and 1)
Const|tut|ona| statutes ALWAS trump court act|on on pub||c po||cy 2)
ku|e: for k Lo be unenforceable per publlc pollcy: 1.
very problemaLlc Lo enforce -- no good sLandard ln Lhese cases 2.
usually develop around emerglng lssues and/or Lechnologles 3.
LeglslaLure can always pass sLaLuLe Lo correcL or address lssue or [udlclal acLlon -- Lyplcally an
oplnlon wlll requesL leglslaLlve acLlon
4.
o||cy: general [udlclal preference for freedom and auLonomy 3.
8esL.2d 178-79 6.
nypo: lvl cases from book 7.
Contracts Contrary to ub||c o||cy 8.
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