JD Next Exam
Promises made out of a sense of moralobligation or honor
lack consideration as held in most states.
A completed gift promise is
not revocable
Promissory Estoppel
principle that prevents someone from going back on a promise made, especially when the other party has relied on that promise to their detriment.
There must be agreement on essential factors necessary to establish a contract between the parties.
which of the following elements is not required in order for the doctrine of promissory estoppel to apply?
No Acceptance
Frank Abbott, a senior partner in the law firm of Abbott and Abbott, provides a letter of employment and hands it to Darcy. The letter states that "This contract is not binding until accepted by signature of the managing partner of Abbott and Abbott. " Darcy signs the letter and hands it back to Frank Abbott, who also signs.
Acceptance
George's Restaurant is in need of repairs after a brawl broke out between Cleaver and Darcy and offers the work to London Construction, stating "This offer may be accepted by return mail." Pamela, the owner of London Construction immediately takes the acceptance over to George's Restaurant personally.
Procedural Posture
How did the case get from the trial courts to the court writing the opinion. (trial court > appellate court)
Damages
the remedy sought.
What four things need to be covered when stating procedural posture?
1) What court is issuing the opinion? 2) Which party is seeking relief? 3) What sort of motion is at issue? 4) What was the disposition of the lower courts?
Illusory Promise
A promise that is unenforceable due to indefiniteness or lack of mutuality, where only one side is bound to perform.
Offer
A proposal made by one party that he/she is willing to enter a contract.
Offer
The following appeared in the Gazette, "$1000 reward will be paid by Pill Co. to anyone who continues to suffer from back pain after using our pills according to the directions. $10,000 is deposited with Big Bank to show our sincerity." Offer or Invitation to Negotiate?
No, because the man did not know of the reward offer at the time he returned the wallet.
When a woman's wallet went missing, she posted a missing flier on Facebook. The flier offered a $50 reward for anyone who returned her wallet with all the cash back to her. The next day, a man was in a Walmart parking lot and noticed the wallet on the ground and knew it belonged to the woman. The man took the wallet to the woman's house and returned it to her. Neither party made any mention of the reward. Later that afternoon, the man saw the missing flier on Facebook for the first time. Upset that the woman did not pay him $50, he went back to her house and demanded the money.
What three things must a contract have?
1) Offer 2) Consideration 3) Acceptance
What four things must be included in the application / analysis?
1) What argument does the plaintiff make. 2) What argument does the defendant make. 3) How did the court respond to those arguments? 4) Why did the court rule the way it did?
No, because the consideration was adequate, and there was consensus ad idem.
A baseball card collector found a stamp in a box of old baseball cards he purchased at a garage sale. Not knowing anything about stamps, he listed it for $5 on Craigslist, describing it as "a typical airline stamp." A casual stamp collector saw the ad and purchased the stamp, not knowing in fact that it was a rare inverted airplane stamp, worth more than $2.5 million. After the true value of the stamp was discovered and extensive news coverage, the seller filed a lawsuit seeking damages of either $2,499,995, or the return of the stamp. Should the seller prevail?
Yes, because the company is paying a bargained-for, valuable amount to rent the office space.
A company is negotiating a contract to lease an office space in a prestigious downtown building. The standard market rate for similar office spaces in the area is $5,000 per month. However, due to a long-standing business relationship, the company secured the lease for only $3,000 per month. The previous year, the company had leased the same office space for $2,500 per month. Does adequate consideration support the contract for the office space lease?
True
A contract must be supported by consideration.
No, because this is a gratuitous promise
Aaron is at dinner with his friends. They order five drinks and are a little intoxicated. While they were joking around, Aaron's friends promise to buy him new shoes if he gets all As this semester. They shake on the offer. Aaron works really hard in the semester and gets all As. When he sees his friends again, he demands that they buy him new shoes. The friends refuse. If Aaron sues his friends, is he likely to win?
The agreement will not be enforced absent some rationale to enforce the promise without consideration
According to legal experts in contract law if I promise to give my daughter, Marley, a valuable painting in exchange for her promise to give me $1 and she says nothing:
It is often difficult to determine whether words of condition in a promise indicate a request for consideration or state a mere condition in a gratuitous promise.
According to legal experts in contract law, if I say to you: "If you go over to the bookstore there, you may purchase a sweatshirt on my credit":
What is a contract?
Agreement between parties, creating mutual obligations that are enforceable by law.
Invitations to Negotiate
Allen's, a furniture store, advertises Belissimo Italian leather sofas (red, black, brown, or beige) for sale at $799. Offers or Invitations to Negotiate?
Which is a falce statement about a unilateral offer?
An offer that cannot be withdrawn.
"Application / Analysis" means what?
Application / Analysis refers to the courts reasoning and how the decision is made.
There is a contract for the Mazda because it was the car in the driveway.
Arnie, thinking of his Buick, agrees to sell "the car in my driveway" to Bill for $400. Bill, thinking of Arnie's Mazda, agrees. It turns out the Mazda was in the driveway. Is there a contract? For which car?
$6,000 $50,000 $0
Buyer and Seller contract for the sale of 1,000 barrels of oil (carefully specified as to grade, etc.) at a price of $50 a barrel, payment and delivery in 90 days. On the payment/delivery date, oil is selling at $44 a barrel and Buyer refuses to go through with the transaction. How much can Seller, injured party, recover?
When can an offer be withdrawn?
Before the acceptance of the offeree.
Offer
Collector of classic novels advertises that she will pay $5 for every copy of a Jane Austen book that may be sent to her. Offer or Invitation to Negotiate?
No. There is no valid offer here due to lack of clear definitive terms, such as how much a fair share of the profits represents. Therefore, there is no clear consideration.
Compare to Feinberg the following example of different types of promises: (a) "If you agree to continue working for me, I'll give you a fair share of the profits at the end of the year." Is there consideration in this case?
Yes. There are clear definitive terms in this promise, therefore considering exists due to a bargained-for-exchange agreement. If the employee voluntarily retires, he/she expects to receive $200 for life.
Compare to Feinberg the following example of different types of promises: (a) "If you will voluntarily retire, I will give you a pension of $200 per month for life." Is there consideration in this case?
True
Court finds the nephew's restriction of his "lawful freedom of action" was consideration.
True
Court responded that a rule requiring a court to determine whether a promise benefits a party would be intolerable and will not be followed.
FIRAC stands for
Facts, Issues, Rules, Analysis, Conclusion
No, one cannot promise to "give up" something that he/she does not have the legal right to do and it be consideration for a legally binding contract.
Is a contract formed if the promisee offers the promisor $ in the exchange for the promisee withholding to engage in behavior that is not his legal right to do. (I will give you $100, if you refrain from stealing from your mom.)
"Issue" means what?
Issue is referring to the I in FIRAC. This term is suppose to make you state what is being fought over and decided by the court.
True
It does not matter whether or not the thing promised is a benefit.
According to legal experts in contract law, if I say to you :"If you go over to the bookstore there, you may purchase a sweatshirt on my credit":
It is often difficult to determine whether words of condition in a promise indicate a request for consideration or state a mere condition in a gratuitous promise
Joe asked Harry for a ride to the airport. Harry agreed and was happy to help his friend. Joe said he would treat Harry to coffee next week as a thank-you for the ride. That next week Joe called Harry and told him that he was too tired from traveling and wouldn't treat him to a coffee after all. What would a court likely decide?
Joe and Harry did not have a valid contract since consideration is based on a past event
Yes, because the flyer, while directed to the public, has language inviting a particular performance.
Katie hangs up a flyer in front of her house that reads, "I will leave everything I own to the first person to bring me an original Van Gogh painting." Is this an offer?
Consensus ad idem
Latin phrase signifying a "meeting of the minds", which is a legal concept describing agreement between parties as to the exact meaning of the terms of a contract. Thus form a valid contract, all parties must have the same understanding of the contract being formed.
No
Paula Prospecter, who is a destitute claimant to an Alaskan gold mine, promises to pay Fran Financier $10,000 if Paula succeeds in reclaiming her mine, in return for Fran Financier's payment of $50 to help Paula to go to Alaska and try. Is there consideration here?
What is an offeree?
Person to whom the offer is made and whom now has the power of acceptance.
What is an offerer?
Person who makes the offer and now has the power to control the offer.
In the context of contract law, which of the following scenarios is an example of an illusory promise?
Phyllis promises to bake cookies for the office party, but only if she feels like it on the day of the event.
True
Plaintiff argued that abstaining from drinking, smoking, etc. served as consideration.
Yes, because Rollem's promise was supported by bargained-for consideration.
Rollem, an automobile retailer, had an adult daughter, Betsy, who needed a car in her employment but had only $3,000 with which to buy one. Rollem wrote to her, "Give me your $3,000 and I'll give you the car on our lot that we have been using as a demonstrator." Betsy thanked her father and paid him the $3,000. Both Rollem and Betsy knew, the demonstrator was reasonably worth $10,000. After Betsy had paid the $3,000, but before the car had been delivered to her, one of Rollem's sales staff sold and delivered the same car to a customer for $10,000. Neither the salesperson nor the customer was aware of the transaction between Rollem and Betsy. Does Betsy, after rejecting a tendered return of the $3,000 by Rollem, have an action against him for breach of contract?
"Rules" means what?
Rules is referring to the R in FIRAC. This refers to guide the courts decision as a matter of fact. This often involves previous cases and statutes.
Offer
Same as before, but in addition, circular contains the words "Out they go Saturday; First Come First Served". Offer or Invitation to Negotiate?
Unilateral Contract
Seeks acceptance by a return performance.
Bilateral Contract
Seeks acceptance by return promise.
No Acceptance
Shazza offers her services as a journalist, but states "if Jones Publishing desires to accept this offer, the acceptance must bear the signatures of all members of the Executive Publishing Board." Jones Publishing sends its acceptance signed by only the Board Chairman.
According to legal experts in contract law if I promise to give my daughter, Marley, a valuable painting in exchange for her promise to give me $1 and she says nothing:
The agreement will not be enforced absent some rationale to enforce the promise without consideration.
"Conclusion" means what?
The outcome of the courts ruling. Includes damages.
Acceptance
Unqualified agreement by the offeree to be bound by the offer is known as
True
Waiver of a legal right at the request of another party is consideration.
A common law form of legal action available to a plaintiff who claims that a contract has been breached.
Which of the following choices best explains the term "assumpsit," as used in Hawkins v. McGee?
What are "the facts"?
Who sues whom. Why? What happened? Procedural posture. Tell the story.
No, it is an invitation because no performance is promised in return for something requested.
You place an ad in the Newspaper as follows: "For sale, one-acre plot off County Road 7, $5,000 minimum bid." Would this advertisement be considered an offer?
What should you reformulate in the conclusion?
You should reformulate the issue by answering it in the conclusion.
Gratuitous Promise
a usually unenforceable promise that is made without consideration. Typically it is the promise of gifts or unilateral pledges to confer benefits.