Law School Notes

Offer and acceptance

Agreement between parties involving an offer, acceptance, and consideration

How can oral evidence connect multiple documents in a contract?

By linking them together.

Public policy and natural law

Considerations of what is morally right and in the best interest of society

Contracts under seal

Deeds, bonds, recognizances, and judgments are contracts under seal

What can parol evidence prove?

Lack of real agreement, mistake, fraud, lack of consideration.

What can be used as proof if witnesses aren't available?

Their handwriting.

What is a wager?

A bet or agreement where parties gamble on an uncertain outcome.

What can evidence demonstrate in simpler contracts?

A lack of consideration.

What is the statute of frauds?

A law that makes certain oral contracts unenforceable.

What qualifies as a lottery?

A lottery involves distributing prizes by chance and requires payment to participate.

What is a wager?

A promise to pay based on the outcome of an uncertain event.

What is the parol evidence rule?

A rule that prevents parties from introducing evidence that contradicts or adds to a written agreement.

What is the difference between a wager and a reward?

A wager has event-related conditions, while a reward does not.

What factors do courts consider when determining if a payment in a contract is a legitimate compensation or an excessive penalty?

Actual intention of the parties, value and certainty of the contract subject matter.

What are patent ambiguities?

Ambiguities evident on the contract's face.

What are latent ambiguities?

Ambiguities that become apparent during contract performance.

Major procedural step for a criminal case

Arrest, booking, initial appearance, grand jury, indictment, arraignment, plea bargain, guilty plea/ or preliminary hearing, information, trial

How do courts view high sums in comparison to the subject matter?

As penalties, even if called liquidated damages.

Judge/Justice

Authority who administers justice and ensures uniformity and certainty in the administration of law

Mutuality of obligation

Both parties must be bound by the terms of the contract for it to be enforceable

What are some exceptions to the invalidity of Sunday contracts?

Charitable or urgent activities may be exceptions.

Legislation

Chief instrument for regular and systematic development of law, can change or create law

How is the legality of a contract determined?

Contracts are assumed to be legal unless there is proof otherwise.

What is the impact of illegal wagers on contract validity?

Contracts involving illegal wagers are generally not valid.

Rights and obligations

Contractual rights and duties arise from acts and agreements between parties

What can courts do with obvious writing and grammar mistakes in a contract?

Correct them.

What is required to prove a contract with a seal?

Evidence of the seal and delivery.

What is parol evidence?

Evidence outside of a written contract.

What is the main concern of courts when determining the nature of a payment in a contract?

Fairness and proportionality.

When is parol evidence admissible?

For latent ambiguities.

When is parol evidence generally not allowed?

For patent ambiguities.

When does a contract involving the sale of stock become valid?

If one party genuinely intends to deliver the stock, the contract is valid.

Give an example of using outside evidence to prove a lack of real agreement.

If one person involved is too young to make a contract.

Judicial precedents

Imperative (binding) and persuasive (non-binding) precedents, judges are bound by imperative precedents

Nature of Promises

In a contract, promises can be either absolute, meaning they must be fulfilled no matter what, or conditional, meaning they depend on certain circumstances. So, it's about determining whether promises are independent or dependent based on what the parties meant when forming the contract.

When can parol evidence be used in cases of mistakes in contracts?

In cases of mutual mistakes or fraud.

What is parol evidence?

Information outside a written contract.

Why are insurance contracts considered legal?

Insurance contracts are considered legal due to their beneficial nature and adherence to legal principles.

Differences in definition of law

Law refers to rules of conduct enforced in courts of law, derived from legislative enactments (statute law) or judicial experience (common law)

What factors can determine the legality of a contract?

Laws, public policies, and court decisions.

Sources of federal law

Legislature- statutes act, Executive- regulations, executive orders, Judiciary- decisions, court rules

What is the difference between liquidated damages and penalties in a contract?

Liquidated damages are reasonably related to potential loss, penalties greatly exceed likely loss.

Are lotteries legal in all states?

Lotteries may be deemed illegal in certain states.

Types of unreality in contracts

Mistake, fraud, duress, undue influence can invalidate a contract

Are contracts formed on Sundays generally valid?

No, contracts formed on Sundays are generally invalid unless they meet specific exceptions.

Can a contract be valid if it involves illegal activities?

No, contracts involving illegal activities are not valid.

Can penalties be enforced in a contract?

No, if the sum greatly exceeds the likely loss.

Is the label used by the parties the sole factor considered by courts?

No, the actual intention of the parties is also considered.

Can a person who made an oral contract later claim they didn't mean what they said?

No, their words and actions are considered evidence of their intention to agree.

Can a written document automatically prove the existence of a contract?

No.

What is required for outside evidence to explain a contract under the statute of frauds?

One document mentioning the others.

Juristic writing

Opinions of legal experts (jurists) published in legal journals and law review articles

What is the difference between oral and written contracts?

Oral contracts are spoken agreements, while written contracts are documented.

What is an insurable interest?

Parties entering into insurance contracts must have a genuine insurable interest in the subject matter.

Sanction of law

Physical power of the state to compel obedience to laws through seizure of property or imprisonment

What can courts do in cases of mutual mistakes?

Rectify the contract to reflect the true intentions of the parties.

What are some examples of regulations that can impact contract validity?

Regulations on product quality, safety, child labor, and business activities.

What determines the rights and obligations of a contract?

Rules of construction and interpretation.

What are the rules of evidence in contract disputes?

Rules that determine what can be used as evidence.

What are the rules of construction in contract law?

Rules used to understand the parties' intentions from the contract itself.

What is the difference between written simple contracts and sealed contracts?

Sealed contracts' validity depends on their form, while written simple contracts are evidence of the agreement.

Consideration

Something of value exchanged between parties to make a contract legally binding

What overrides general words in a contract?

Specific descriptions.

What can evidence outside of a written contract prove?

That a document isn't a valid agreement.

Who determines the facts in a dispute over an oral contract?

The jury.

What is crucial in determining intention in contract interpretation?

The overall context of the contract.

Who is responsible for construing words in cases of ambiguity?

The party who drafted the contract.

What does proof of the document refer to?

The process of establishing the existence and content of a written contract.

What is the subject matter of a contract?

The specific topic or purpose of the contract.

Are there any exceptions to the illegality of wagers in contracts?

There may be exceptions in certain jurisdictions or for specific types of wagers.

How do business regulations and Sunday laws impact contract validity?

They can affect the validity of contracts, with exceptions for certain activities.

What do the rules regarding penalties and liquidated damages state?

They provide guidelines for determining the enforceability of such provisions in contracts.

Dependent Promise

This type of promise comes with a condition or limitation. For example, if you promise to sell something, it's understood that you'll do it only if you receive payment at the same time. The other party also promises to pay only if they receive the merchandise. These promises depend on each other.

Independent Promise

This type of promise is not tied to any condition. Parties may specify that their promises are independent, meaning they'll fulfill their obligations regardless of what the other party does.

How can oral contracts be proven?

Through witnesses, statements, and circumstances surrounding the contract formation.

How should contracts be interpreted?

To be lawful whenever possible and reasonable as long as it aligns with the parties' intentions.

What is the purpose of proving a document in a contract dispute?

To determine if a legally binding contract exists and its effects.

What can evidence of trade customs or usages be used for in commercial contracts?

To explain contract terms, as long as they don't contradict the law.

What are the purposes of parol evidence?

To fill in missing terms and clarify unclear sections of a contract.

What can oral evidence be used for in regular contracts?

To identify the parties involved.

Why are written contracts seen as the final expression of the agreement?

To maintain contract stability.

What can extrinsic evidence be used for in relation to written contracts?

To prove a document's existence or clarify ambiguous terms.

When can parol evidence be used?

To prove that a document isn't a valid agreement.

What is the primary aim of contract interpretation?

To understand and uphold the parties' intentions.

What can courts do in cases of mistakes involving fraud?

Use extrinsic evidence and the affected party can choose to correct or annul the contract.

What is usury?

Usury refers to charging excessive interest rates on loans.

What do courts consider when determining if a sum is a penalty?

Value and certainty of the contract subject matter, dislike for extreme forfeitures.

Are wagers considered legal in contracts?

Wagers are generally considered illegal in contracts.

Are wagers legal?

Wagers were initially legal in England and some U.S. states, but later banned in many places.

What can vary between states in terms of contract legality?

What is considered illegal based on state laws and public sentiment.

Are there exceptions to the parol evidence rule?

Yes, certain extrinsic evidence can be allowed.

Can courts adapt and change the law based on public opinion?

Yes, courts may adapt and change the law based on public opinion.

Can liquidated damages be recovered in a contract?

Yes, if the fixed sum is reasonably related to potential loss.

Is the sale of stock without an intention of delivery considered a wager?

Yes, the sale of stock without an intention of delivery is viewed as a wager.

Are transactions beginning on Sundays but concluding on other days valid?

Yes, they are usually considered valid.

Can contracts violating regulations be partially valid?

Yes, they may be void in certain aspects but valid in others.

Can a lost contract document still be proven?

Yes, using standard rules of evidence.

Are there rules for calling attesting witnesses?

Yes.

Can evidence be used to support the written part of a partly written contract?

Yes.

Have some laws relaxed the rules for calling attesting witnesses?

Yes.