Bus Law..Spr 2015 CHAPTER

Tuesday, February 24, 2015 EQ: Understanding contract law.  Types of Contractual Mistakes  Unilateral Mistake  Mutual Mistake  Material Facts  Examples  Void

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

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  Consideration  1. Each party must give an act, forbearance or promise to the other party.  2. Must trade what they contribute to the transaction.  3. What each party trades must have legal value and be worth something in the eyes of the law.  A. Adequacy of consideration  B. Nominal consideration

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  Now, let’s go back and have someone read “What’s Your verdict” on page 139.  Deeper discussion of Coercion and Genuineness of Assent as relates to Consideration – see “tough economic times.”

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  Classwork  Read 8-2 and 8-3 from pp  Write out all the (8) definitions on workbook pages

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  Circumstantial Consideration  Illusory promises  Termination clauses  Output and requirements clause  Existing Duty  Public and Private variety  Settlement of liquidated/unliquidated debts

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  Continued  Release  Composition of creditors  PAST PERFORMANCE

Wednesday, March 4, 2015 EQ: Understanding contract law and elements of consideration  WHEN consideration not required  Promise to charitable organizations  Promises covered by the UCC  Promises barred from collection by statute  Promissory estoppel

EQ: Understanding contract law and elements of consideration  Wed class closer / Thurs class starter  Finish definition in workbook  Answer all Concept Review and Goals Review questions in workbook for 8-2 and 8-3

More On Consideration and Pledges  Pledge = creditor obtains possession of collateral and possession may be based on written or oral agreement.  To be a pledge, creditor must have possession of collateral until “loan” is discharged  Pledgor/debtor voluntarily gives up possession of the property  Pledgee/creditor gets possession until legal obligation is performed  See examples ….

What do you see? What’s missing?

Another example

Put together a Pledge Card  Using examples and the internet, please pick a not-for-profit organization and come up with an effective pledge card for that organization.  Be sure to include:  Information about the organization and where all people can give within it  Sufficient information blanks for pledgor  Sufficient information blanks for pledgor’s choices about:  Method of payment, frequency of payment, direction of gift  Other key contact points betwee pledgor/pledgee

A Closer Look at Chapter 9 …  9-1 Contractual Capacity for Individuals and Organizations  9-2 Limits on the Rights of those WITHOUT CAPACITY

Monday, March 9, 2015 Class Starter  Please get a textbook and your workbooks.  Please complete:  Read Pp  Definitions on page 51 (wkbook)  Answer on pg. 52 (wkbook)  Answer 1-6 on pg. 54 (wkbook)

CHAPTER 10 : EQ: What agreements are void and unenforceable?  Class Discussion: What are some types of contracts that society and courts should not enforce even though all the enforceable elements of a contract are present??

EQ: What agreements are void and unenforceable?  Read aloud Hot Debate on page 168.  Lottery  Wager  Pari-mutuel betting  State-run lotteries  Bingo games and pull-tab betting

EQ: What agreements are void and unenforceable?  Competency license  Revenue license  Price fixing  Bid rigging  Unconscionability  Procedural version = creation of contract with “fine print”  Substantive version = obvious “unfair” terms

EQII: Why do some agreements need to be in writing?  Statute of Frauds include:  Contracts to buy and sell goods for a price of $500 or more  Contracts to buy and sell real property or any interest in real property  Contracts that require more than one year to complete  Promises to pay the debt or answer for a legal obligation of another person  Promises to give something of value in return for a promise of marriage  LET’S TAKE A CLOSER LOOK AT THESE!

EQII: Why do some agreements need to be in writing?  Remember the essential terms to create a valid offer:  1. Name of the parties  2. Subject matter description  3. Price  4. Quantity  5. Signature  6. Other essential terms

EQII: Why do some agreements need to be in writing?  Specific Rules of Interpretation  These should be kept in mind because a court of law certainly will review a contract based on these.  1. ANALYSIS  2. CONFLICTING TERMS  3. WORDS  4. AUTHORS OF AMBIGUITY  5. IMPLIED REASONABLENESS

EQII: Why do some agreements need to be in writing?  Parol Evidence Rule = consists of words spoken prior to the execution of the final writing or at the time of signing, generally inadmissable in court proceedings  Certain Exceptions to this.. See page 182

Assignment  By end of class, come up with two sample questions with answers for Chapter 9 and 2 sample questions with answers for Chapter 10.  They may be multiple choice or fill in the blank.

Tuesday, March 10, 2015  More on: Illegal Agreements and Statute of Frauds  EQ: What agreements are void and unenforceable? Why do some agreements need to be in writing?  Sample Trivia Questions reminder:  Include the question and the answer.  Isolate the answer from the question.  We will be putting together more trivia questions for a full day of review on Monday, March 16, 2015.

Tuesday, March 10, 2015  Class Starter and Yesterday’s Review:  Read over pp  On page 184, Complete 1-9 Matching  On page 185, answer #10-14.

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  11-1 TRANSFER AND DISCHARGE  Will Conclude our Look at Contracts by looking at how contractual obligations are both transferred and discharged.  Hot Debate on page 188  What’s Your Verdict on page 189  Assignment, obligor and performance

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  What are Non-assignable rights that may NOT BE TRANSFERRED?  Right created under a contract that prohibits transfer of contractual rights  Claims for damages of personal injuries  Claims against the United States  Rights to personal services, especially those of a skilled nature, or when personal trust and confidence are involved  Assignments of future wages, as limited by state statutes

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Key Terms regarding discharge OF CONTRACTUAL OBLIGATIONS BY PERFORMANCE 1. Discharge 2. Breach of contract 3. Substantial performance 4. Defaults 5. Anticipatory breach

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Key Terms regarding discharge OF CONTRACTUAL OBLIGATIONS BY INITIAL TERMS 1. On a specific date or upon expiration of a specific period 2. Upon occurrence of a specified event 3. Upon failure of a certain event to happen 4. At free will of either party upon giving notice

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Key Terms regarding discharge OF CONTRACTUAL OBLIGATIONS BY SUBSEQUENT AGREEMENT 1. Rescission 2. Accord and satisfaction 3. Novation  Key Terms regarding discharge OF CONTRACTUAL OBLIGATIONS BY PERFORMANCE

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Key Terms regarding discharge OF CONTRACTUAL OBLIGATIONS BY OPERATION OF LAW Alteration of terms must be 1. Material 2. Intentional 3. Made by party to agreement 4. Made without consent of other party definition-explanation.html

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  11-2 Remedies for Breach of Contract  Minor Breaches  Major Breaches

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Remedies for a Major Breach  Recission and restitution  Money damages  Specific Performance

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  More on Money Damages …  Compensatory  Consequential  Punitive  Liquidated  Nominal

CHAPTER 11: EQ: How contractual obligations are transferred and fulfilled?  Factors affecting Choice of Remedy  1. Conflict of Remedies  2. Duty to Mitigate  3. Waivers  4. Statute of Limitations  5. Bankruptcy