Test 2: Chapter 9

Requirements for a quasi contract

(1) the plaintiff confers a benefit upon the defendant (2) the defendant knows or appreciate the benefit (3) the defendant's retention of the benefit is inequitable

Sales of personal property are governed by Article __ of the uniform Commercial Code

2

Void Contract

An agreement that does not meet all of the requirements of a binding contract. Thus it is no contract at all, it's merely a promise or an agreement having no legal effect

Formal Contract

An agreement that is legally binding because of its particular form or mode of expression ex: checks

Classifications of contracts: Express contract

An agreement that is stated in words, either orally or in writing The terms of the contract are expressly stated

Quasi Contracts

An obligation on based on contract that is imposed to avoid injustice don't have a promise, we have a situation where one person has been enriched without compensation Ex: Someone was unconscious and the paramedics pull up and try to bring him back, and he goes through surgery. The guy sees these bills, and he doesn't want to pay them on a legal basis since he didn't enter into a contract

Personal Property

Any type of property other than an interest in real property (land)

A valid contract may be enforceable for which reasons?

Both a and b

Which of the following is an informal contract?

A written contract for the sale of a 5-acre tract of land

Informal Contract

All other contracts other than formal contract

Sale

Consists of the passing of title to goods from a seller to a buyer for a price

True/False: A negotiable instrument, such as a check, is not a formal contract

False

True/False: All written contracts are considered to be formal contracts

False

True/False: Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria

False

Fox V. Mountain West Electric, Inc case

Fox and mountain west were contracted to put in fire alarms. MWE did the wiring, while fox did everything else. There was an issue about the contract, and fox left and took them to court. He claims he should've been compensated under UCC. the district and appellant court both sided with MWE, saying the the contract didn't fall under UCC since it was service and goods, not just the sale of goods

Does the UCC deal with the sale of goods or real estate?

Goods

A promise against public policy:

Has no legal remedy available for breach

Development of the law of contracts: Uniform Commercial Code

Sale - the transfer of title from seller to buyer. Goods - tangible personal property (personal property is all property other than an interest in land

Skebba V. Kasch

Skebba wanted to leave the company he and Kasch worked for. Kasch offered him $250000 to stay if he was fired, retired, or if the company was sold. He stayed and the company ended up being sold, and he didnt get his $250000. He sued and the court found in favor of Kasch, since Skebba didn't know his damages since he didn't take the other job. The court is wrong though, since his damages of $250000 have nothing to do with the amount of money he would have made at the other job

Steinberg V. Chicago Medical School

Stienberg completed an application to medical school. He doesn't get in and sues the school for the $15 they charged him. The Chicago medical school looks mostly at the contacts of the applicant to the school, donations, etc. The court found that mr Stienberg by handing over his money and the application, that he made an offer, the university accepted it by cashing it. Their promise was to evaluate the application on a fair basis and they did not do that. The school claims they did not enter into a contract, but since they stated how to judge their entries on the bulletin, they were wrong

Requirements of a contract: Capacity

The parties to a contract must have contractual capacity Ex: incompetent people have no legal capacity to enter a contract, while minors and intoxicated persons have limited capacity. Everyone else has full capacity

Requirements of a contract: Mutual Assent

The parties to a contract must manifest by words or conduct that they have agreed to enter into a contract

Requirement of a contract: Legality of a contract

The purpose of a contract must not be criminal, tortuous, or otherwise against public policy

Contract Law:

Today usually recognizes contractual obligations whenever the parties manifest an intent to be bound

True/False: A non-contractual promise may be enforceable where there has been justifiable reliance on the promise

True

True/False: An implied contract is as enforceable as is an express contract

True

Promissory Estoppel

a doctrine enforcing some noncontractual promises

Executed contract

A contract that has been fully performed by all the parties

Executory Contract

A contract that has yet to be fully performed

Valid Contract

A contract that meets all of the requirements of a binding contract

Voidable contract

A contract, but because of the manner in which it was formed or a lack of capacity of a party to it, the law permits one or more of the parties to avoid the legal duties the contract creates If Fred fraudulently offers a contract to Tom, Tom can call bullshit and not have to preform his promise

4 Basic requirements of a contract

Mutual assent Consideration Legality of object Capacity

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a:

quasi contract

Contract

A binding agreement that the courts will enforce

Classifications of contracts: Bilateral contract

A contract in which both parties exchange promises ex. if you come and clean my pool, I'll pay you $100 and you agree to do it

Classifications of contracts: Unilateral contract

A contract in which only one party makes a promise i'll pay you $100 to clean my pool, you don't accept nor denie, and it doesn'y not become a contract until you actually clean the pool

Classifications of contracts: Implied in fact contract

A contract in which the agreement of the parties is inferred from their conduct Implied-like a haircut, no one talks about the haircut, but its implied that you're there, you'll pay, and you'll receive a service

Requirements of a contract: Consideration

Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange each party must give up something of legal value ex money and real estate for a contract to pay rent

How does UCC define goods?

Movable personable property

Unenforceable Contract

Is a contract for the breach of which the law provides no remedy

Deveolpment of the law of contracts: Common Law

Most contracts are governed primarily by State common law, including contracts involving employment, services, insurance, real property (land and anything attached to it), patents, and copyrights

Are contracts for legal services under UCC?

no

Does Louisiana use UCC?

no