BLaw Ch. 10
What are the rules of contract interpretation?
(1) Analysis (2) conflicting terms (3) words (4) authors of ambiguity (5) implied reasonableness.
On what occasions does the Statute of Frauds require a writing?
(1) Contracts to buy and sell goods for a price of $500 or more; (2) contracts to buy and sell real property or any interest in real property; (3) contracts that require more than one year to complete; (4) promises to pay the debt or answer for a legal obligation of another person; (5) promises to give something of value in return for a promise of marriage.
Which key elements must be in a writing in order to satisfy the Statute of Frauds?
(1) Names of the parties, (2) subject matter description, (3) price, (4) quantity, (5) signature, (6) other essential terms.
Describe the three illegal agreements that unreasonably restrain trade.
(1) Price fixing: competing firms agree on the same price to be charged for a product of service, which injures consumers. (2) Resale price maintenance: manufacturers contract with retailers to sell their products at a particular price. (3) Allocation of markets: competitors divide markets between themselves.
(5) Contract for which the consideration is marriage:
A signed writing is required for agreements in which one party promises to marry in return for something other than the other's promise to marry.
Which agreements, although illegal, are enforceable in court?
Agreements made with protected victims, the excusably ignorant, those parties who rescind prior to an illegal act, and divisible contracts.
When are agreements considered illegal?
Agreements that involve contracting for an illegal act generally are void and unenforceable. Almost any agreement to commit a felony will be an illegal agreement.
Describe why the Statute of Frauds is necessary.
Because oral contracts may be subject to fraudulent claims, the law requires that some of the most important contracts be placed in writing in order to be enforced in court. These laws are known as the Statute of Frauds.
Statute of Frauds
Contract must be written to be enforceable
(4) Contract to pay a debt or answer for another's debt or the debts of an estate:
Contracts to pay a debt or answer for another's debt must be in writing. An exception is the primary promise in which one person orally agrees to a contract and payment on behalf another person.
(3) Contracts that require more than one year to complete:
Courts will not enforce a contact that takes more than one year to complete unless there is a signed writing to prove the agreement the year begins at the time the contract is made, not at the time the contractual performance is to begin.
(1) Contract for the sale of goods for $500 or more:
If parties agree to buy and sell goods for a price of $500 or more, their contract must be evidenced by a writing. If a modification to a sale of under $500 brings the price above $500, then a contract must be signed in writing.
Explain how parties to an illegal agreement are often not equally to blame.
Parties to an illegal agreement are often not equally to blame when one party lies to another person to enter an illegal agreement. If the illegal agreement was created by fraud, duress, misrepresentation, or undue influence, the victim may obtain restitution.
revenue license
Raise revenue rather than to protect the public
What are the various forms of illegal agreements?
The various illegal agreements include those in which there may be a specific statute forbidding a contract, agreements that obstruct legal procedures, agreements that are made without a required competency license, agreements that affect marriage negatively, and agreements that unreasonably restrain trade.
(2) Contract to sell an interest in real property:
Transfers of real property, or of lesser interest such as a lease or the right to pump oil or cut timber, must be in a properly signed writing to be enforceable. In most states oral leases for one year or less are enforceable. Some states require that contracts employing real estate brokers satisfy the Statute of Frauds.
What are the special rules regarding signatures?
Under Statute of Frauds requirements, only the parties whose signatures actually appear on the contract may be sued for enforcement. The signature may be written, stamped, engraved, or printed. It may consist of any mark that is intended as a signature or authentication of the writing.
price fixing
an agreement between two or more firms on the price they will charge for a product
bid rigging
competitors' agreement that one bidder will have the lowest bid for a particular job
parole evidence
consists of words spoken prior to the execution of the final writing or at the time of signing
unconscionable
contract held unfair that parties under ordinary circumstances wouldn't accept it
lottery
has 3 elements: a prize, chance, and consideration
anti-trust laws
laws to control monopoly power and to preserve and promote competition
wager
one of the most common forms of gambling, bet on the uncertain outcome of an event
competency license
persons in certain occupations and businesses pass exams and receive a license to ensure that they are competent
compounding a crime
refrain from informing on or prosecuting an alleged crime in exchange for money or other valuable consideration