Presentation on theme: "CONTRACT LAW TRIVIA CONTEST REVIEW. How will the courts handle a Contract that is partially legal and partially illegal?"— Presentation transcript:
CONTRACT LAW TRIVIA CONTEST REVIEW
How will the courts handle a Contract that is partially legal and partially illegal?
An advertisement reads, “Lawn chairs are marked down by 20 percent to $110. The first six people to purchase a Lawn chair on May 20 will receive an additional 20 percent off and a free seat cushion.” The advertisement is
WHAT ARE THE SIX ELEMENTS OF A CONTRACT?
TRUE OR FALSE: ALL CONTRACTS MUST BE IN WRITING TO BE VALID
WHAT IS THE NAME OF THE LAW THAT REQUIRES CERTAIN CONTRACTS BE IN WRITING?
GIVE AN EXAMPLE OF A VALID OFFER What are the requirements of a valid offer?
TRUE OR FALSE: IF ONE PARTY TO A CONTRACT MAKES A MISTAKE, EITHER PARTY CAN RESCIND THE CONTRACT
WHO CAN ACCEPT AN OFFER?
HOW CAN YOU ACCEPT AN OFFER?
These are examples of what: A sale ad in the newspaper, a price tag at the store, a “for sale” sign on a car sitting in a yard.
THIS IS AN EXAMPLE OF WHAT? In a “Day after Thanksgiving” Sale Circular, Walmart will be giving away a free ornament to the first 200 customers, plus giving those first 200 an additional 10% off their sales.
TRUE OR FALSE: THE DIFFERENCE BETWEEN A BILATERAL CONTRACT AND A UNILATERAL CONTRACT IS THE AMOUNT OF CONSIDERATION
WHAT IS CONSIDERATION?
WHAT ARE TYPES OF CONSIDERATION?
WHAT DOES “MUTUAL ASSENT” MEAN? Provide an example
NAME THE WAYS THAT A DEFECTIVE AGREEMENT CAN ARISE
TRUE OR FALSE: Marge, a teenager, ordered three pair of jeans through a mail order catalog and has not yet paid for them. She received them, wore them, then decided she didn’t like them. To disaffirm the contract, she needs to send back the jeans and will not be obligated to pay anything to the cataloger.
WHAT IS “CAPACITY” AS IT RELATES TO A CONTRACT?
TRUE OR FALSE: MINORS ARE ALWAYS CONSIDERED TO BE INCAPABLE OF ENTERING INTO A CONTRACT
WHAT TYPES OF CONTRACTS **MAY NOT** BE ASSIGNED?
True of False: If a minor misrepresents his/her age on a contract, he/she can still void the contract in most states
WHAT TYPES OF CONTRACTS MUST BE IN WRITING?
I’ve lost my dog. I placed an ad in the paper stating that I will pay a reward for $50 for the safe return of my pet. 1. BILATERAL OR UNILATERAL? 2. WHEN WILL THIS CONTRACT ACTUALLY EXIST?
WHEN A CONTRACT MUST BE IN WRITING, WHAT ELEMENTS MUST BE IN WRITING?
Undue influence occurs when
You come to my real estate office to purchase a condo in my apartment building. I know that the foundation had been damaged, but I don’t reveal that to you even though the damage was hidden and cannot be found by you. Fraud? Type? Why or why not?
TRUE OR FALSE: A CONTRACT WRITTEN ON THE BACK OF AN ENVELOPE IS VALID AS LONG AS IT CONTAINS THE REQUIRED ELEMENTS
Sara Getler wanted to buy a diamond broach that belonged to David Nosse. She wrote a letter to Nosse offering to purchase the broach for $5000. Gentler ended the letter by stating, “If I don’t hear from you by November 9, I will take your silence to mean that you accept my offer. Nosse rec’d the letter, but did not reply. Is there a contract? No acceptance
Evans used his line of credit to run up a $98.75 bill with Rosen Dept. Store. When Rosen tried to collect, Evans wrote a check for $79. He wrote on the check, “payment in full for all accounts to date”. Rosen cashed the check. When Rosen sued Evans for the $19.75 balance, Evans argued that under accord and satisfaction, the fact that Rosen cashed the $79 check meant that he had accepted the amount as full payment. Was Evans right? NO – The amount was NOT in dispute, therefore accord./sat. does note apply
Joan’s brother, Ken is 17 and lives away from the parents’ home. Ken has had no contact with the parents, has refused any help they have offered. He has a job as a grocery clerk to support himself. Ken bought a winter parka on credit at a local sporting goods store and made two payments. If Ken should decide to back out of the contract today, will the contract be voidable? Why or why not NOT VOIDABLE – HE IS AN EMANCIPATED CHILD. The contract is valid between Ken and the merchant
The car salesperson tells you that, “This car will last for years and years” You buy the car and it dies two weeks later. Fraudulent statement by the car salesperson? Why or why not? Sales puffery—his opinion
A group of high school students (all minors) find an ad on the internet for discount tickets to Florida over Christmas vacation. They decide that would be great fun and one of them has a grandmother they can stay with. All their parents say they can go, but they have to pay their own way. They buy the airline tickets and go. When they return, they contact the airline to inform them that they were really only 16, not old enough to enter into a contract and wish to disaffirm the contract. They request their money back. Do you think they should get their money back? Why or why not?
ENFORCEABLE CONTRACT? I enter into an oral contract with Mr. Jones to purchase a piece of property for $10,000. He will pay me the money within 10 days. On day 11, I seek to force Mr. Jones to pay the money. Do I have a leg to stand on to enforce this contract? This contract is unenforceable as it pertains to real property. A contract to purchase real property must be in writing. Therefore, our oral contract is unenforceable.
A CONTRACT? At the end of the semester, you offer to sell your 3 textbooks to a classmate for $50.00 Your classmate accepts your offer. Have you entered into a contract? Why or why not? If so, what type?
AN OFFER? “I’m really strapped for cash these days. I have my rent to pay, diapers to buy and the clinic is calling wanting to set up a payment plan for my bill there. I guess I could sell some of my video games to raise some cash.” An offer? Why or why not?
ACCEPTANCE? You talked with your former classmate about wanting to sell your car the last time she was in town. You’ve thought about it more and you send a letter telling her that you would like to sell your car to her for $1000. You state, “unless I hear from you by 4:00 p.m. of September 25, 2005 that you reject the offer, I will plan to deliver the car on September 27, 2005 and collect the money.” You do not hear back. When you deliver the car, your friend says she doesn’t want and won’t pay for it. You tell her she accepted the offer by not responding—it was clear in the letter! Valid contract? Why or why not?