v Contract I outline
è Definition of a contract: An agreement between two or more parties creating obligations that enforceable or otherwise recognizable at law. When entered into a contract it is recognized by law that it is a duty and if the duty is breached the law gives a remedy. “ A legally enforceable promise”.
è Elements of a contract: Offer + Acceptance + Consideration.
è Types of contract:
· Quasi contracts: contracts implied by law to avoid unjust enrichment.
è Contracts formed by mutual assent:
· Expressed contract: an agreement expressed orally or in writing.
· Implied in fact contract:
§ Assent is inferred based on the situation (conduct, language, context, etc.)
è Contracts formed by mutual assent can be either:
· Bilateral contract: Promise for promise. OR
· Unilateral contract: Promise for performance.
Chapter 1: Introduction to Contract Law:
· Two key assumptions in contract Law:
1. Promises are a voluntary choice: The idea is that people can and should make their own choices. Freedom of contract vs. Freedom from contract (we don’t want people to enter a contract involuntarily).
2. Market Exchange: Contract law can be seen as setting out the rules of game for the market economy.
è Three principles of a contract: Bargain, reliance and restitution.
§ The bargain principle includes the central belief that an agreement to exchange one thing for another gives rise to mutual obligations. A deal is a deal.
§ Unlike a gift, it is more of a selfish action, because there is an expectation that there will be something in return. It includes the central belief that an agreement to exchange one thing for another gives rise to mutual obligations
· Rationale for why deals are obligatory:
I. Both sides are committed. When you get something you should have to give something in return
II. The other person will count on the deal and spend money or make commitments because he or she believes the deal will be fulfilled
III. Deal making is the way people make a living – and so the promises made in this context are particularly serious and therefore obligatory
IV. Commercial exchange is crucial to our economy, and if people do not live up to their deals, business people will be unable to plan for the future, people won’t be willing to make deals, businesses will shut down, people will be unemployed, etc…
Deals and the fulfillment of deals are crucial to a free market system and a free market is essential to individual freedom.
è Kirksey v. Kirksey: (Widow’s relocation)
§ Facts: The widow who was offered by her brother in law to move to his land because he had more than enough.
§ Rule: To qualify as con
in 1 restatement contracts:
The principle that a promise made without consideration may nonetheless be enforced to prevent injustice if the promisor should have reasonably expected the promisee to rely on the promise and if the promisee did actually rely on the promise to his or her detriment.
Objectively viewed, the jury must find that these were not merely words of assurance or statements of belief, but of a promise of future action.
Elements of Promissory estoppel:
Promisor reasonably expects the promise will induce action.
There is reliance.
Injustice can be avoided only by enforcing the promise.
è Ricketts v. Scothorn: (Grandpa’s gift)
Facts: Grandfather did not want his granddaughter to work anymore, and grandfather gave a note to his granddaughter promising her that he would take care of her, therefore she quit her job.