law test 2

What is meant by mutuality?

"Meeting of minds" Exchange of promise

If a contract term is ambiguous, how will a court decide its meaning? How can parties to a contract avoid ambiguity?

"Trade Usage" - Know your fields/industry's lingo pg 99

List eight items that should be included in convention contract. Do not repeat any of the items you listed in response to the eight items that should be included in a catering contract?

- Check-in & check-out procedures - Type of rooms - # of meals provided by the hotel - # of guest rooms that hotel can hold - Location of rooms - Equipment needed in meeting rooms - Attendees deadline reservations - Restriction on signs/advertisements

What are the six essential elements of contract?

- Contractual Capacity - Mutuality - Legality - Consideration - Proper form - Genuine assent

Why, as a practical matter, should all contracts be in writing?

- It is difficult to prove - You lack documentation to establish the truthfulness of your position.

What categories of people lack contractual capacity?

- Minors - Mentally incompetent - Very intoxicated

List eight items that should be included in a catering contract?

- Names & addresses of the restaurant and the customer. - Date of the affair - Location at which the food will be served - The shape & arrangement of the tables - Cancelation policy - Parking arrangements - Attire of servers - The menu in its entirety

Name three types of contracts that are unenforceable unless they are in writing?

- Purchase and sales of real property - Cannot be completed within 1 yr. from when they are made. - To pay another person's debt if that person fails to pay - Sales of goods over $500 (moveable, tangible, NOT Services)

Parol evidence rule

- if it is not in writing it did not happen you cannot change a written contract orally - if the oral agreement happened before that written contract does not matter - if the oral changes happen after the written contract is a separate contract

What are the elements of a claim for interference with contractual​l relations?

1. Valid contract must exist between 2 parties 2. Third-party must be aware of the existence of the contract 3. Third-party must intentionally cause or induce one of the contraction parties to break the contract and do business instead with the third party. pg 126

What is a no-cause termination clause?

A contract provision permitting either party to terminate the contract for any reason or for no reason at all. Two week notice/pay price. you can get out of contrct but you have to pay the price of whatever is on the contract pg 125

no-cause termination clause

A contract provision permitting either party to terminate the contract for any reason or for no reason at all. pg 125

attrition clause

A contract that obligates the organization to compensate the hotel if fewer than the contractual number of rooms are rented by conventioneers. pg 124

goodwill

A favorable reputation producing an expectation of future business. pg 115

fraud

A known untruthful statement made on purpose for the purpose to mislead someone. Mainly used for their own gain.

tort

A noncriminal conduct done by one person that causes injury or financial loss to another. pg 125

What is a forum selection clause?

A provision that identifies a specific location at which any lawsuit arising out of a contract must be brought. pg 102

compensatory damages

A reasonable amount of money needed to cover loss by the non-breaching party as a result of the breach. pg. 103

counteroffer

A reply to an offer that is adjusted by one or more of its terms. (offeree makes a counteroffer)

Which of the following contracts must be in writing to be enforceable? A. A contract to hire a banquet manager for 3 yrs. B. A promise made by a casino patron to cover the betting debts of his friend C. A contract to hire a musical trio to play for 3 weekends at a restaurant for a total of $2400 D. A contract to purchase 3 acres of land o which the buyer intends to build a restaurant

A. Writing B. Writing C. Not written D. Writing

Identify whether each of the following is an offer or an invitation to negotiate. A. three pounds of fresh shrimp will cost 23.50 B. I will play the piano at your restaurant from 5:30-9 every night during October for $90 a night C. I have gourmet ice cream for sale D. I am thinking about selling my motel E. Private swimming lessons are available at the hotel pool for $25 per half hour

A. offer B. offer C. Negotiate D. Negotiate E. Offer

forbearance

Agreeing to refrain from doing something you have a legal right to do, or promise to forbear.

unilateral mistake

An error made by only one party to the contract as to the terms or performance expected.

If a guest cancels her reservation with a hotel, how can the hotel mitigate its loss?

Attempt to rent the room to another guest.

What determines the obligations owed to a hotel when a person or organization with a hotel reservation cancel the reservation?

Attrition clause pg 124

Why does the law require a non-breaching party to mitigate damages?

Avoid economic waste that is, an unnecessary loss.

Which of the following types of damages will a plaintiff in a BREACH OF CONTRACT case be able to recover? A. Lost profits B. Pain & suffering C. Punitive damages

C. Punitive damages (money)

condition

Contingent upon the occurrence or nonoccurrence of a specified event if a contractual duty is not absolute. pg 101

What is an attrition clause?

Contract provision that obligated the organization to compensate the hotel. pg 124

valid

Enforceable in court.

breach of contract

Failure to perform the terms of a contract; ---> becomes a liability.

To successfully pursue a case for interference with contractual relations the plaintiff must prove, in addition to other elements that the defendant was aware of the existence of the contract between the plaintiff and a third person. What is the policy reason for making this a necessary element?

Give rise to the tort. pg 125*

medigation

If the other side breeches promise, you have to do all you can to suffer no loss

damages

Money to compensate for resulting loss. pg 103

Legality

Must be legal ex. price fixing

genuine assent

No one is being forced to sign it.

If a plaintiff in a breach of contract case is unable to determine the amount of its loss, is it entitled to recover any damages?

No. 1. inability to prove reasonable certainty of the fact or amount of damages 2. inability to prove the hotel could have foreseen those damages

What is an agreement not to compete?

Not to compete in the same geographical area for a specified period of time. pg 117

void contract

One that is unenforceable in court.

voidable contract

One that may be canceled at the option of one party.

invitations to negotiate

Open discussions that may or may not lead to an offer.

parol

Oral

specific performance

Performance of the contract terms. pg 103

trade usage

Practices or modes of dealing generally adhered to in a particular industry, from which an expectation arises that they will be honored in a given transaction. pg 99

offer

Proposal to do or give something of value in exchange for something else.

agreement not to compete

Provision barring the seller from competing in the same geographical area for a specified period of time. pg 117

mitigate

Reduce or lessen. pg 109

Statute of Frauds

Requires a written contract only.

illusory

The commitment is so delusional that the party has not promised to anything.

offeree

The person to whom the offer is made.

offeror

The person who makes an offer.

absolute

The promises to uphold their side of the contract. (they must be performed or the promising party will be in breach of contract) pg 100

easement

The right for someone to use another person's land for something specific, limited time. ex. ask to go hunting

duress

Threats of harm if he does not sign contract.

What is the legal effect of an illegal contract?

Void pg 87

**Proper form

Written or oral**

As a general rule, are contracts entered on the internet valid?

Yes

We learned that a name typed at the end of an offer or acceptance sent via email is considered the equivalent of a person's signature. Why is this so?

Yes, Statue of Frauds pg 101-103

forum selection clause

a contract that has a specific location if a lawsuit needs to be settled. pg 102

capacity to contract

ability to enter in a contract

when you're given an offer you can...

accept ---> contract is formed Counter offer ----> negotiation (going back and forth)

if the oral changes happen ---- written contract it's a separate contract

after

acceptance

agreeing to the offer to the terms in the contract.

Trade usage can overcome?

ambiguous terms

if the oral agreement happens ----- the written contract it doesn't matter

before

Partially Performed

doing some part, but not the whole, of that agreed to by either party in a contract

mutuality

everyone understand and appreciate the terms and conditions ​ (meeting of the minds)

contract

exchange of promises

consideration

exchange of value Something of value exchanged for something else of value.

mutual mistake

one mistake from both parties.

parol evidence rule

pg 94

pain and suffering

physical pain, mental, stress or other similar injury resulting from breach of contract. pg 104

you don't always have to sign a contract, if

you abide by the contract its enforceable