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Contracts
St. Thomas University, Florida School of Law
Ledwon, Lenora P.

Contracts

Chapter 1: Introduction to Contract Law
A. The Study of Contract Law
o Should be voluntary on both sides
o A binding promise or agreement between two or more parties
o Choice is fundamental American right
o Person ought not to evade obligation unless something significant has changed in the relevant circumstances
o K must be made in good faith
o Coolidge v Pa aiki and Kea 1877 (I) authority Mrs. Coolidge was given to enter into the contract w/ the laborer was not in writing. Whether contract was enforceable b/c Mrs. Coolidge entered into the contract on husband’s behalf. –this is a question of law. Was the contract definite in terms enough to be considered a contract? Translation from English to Hawaiian changed all labor to mean farming. Were the laborers competent enough to enter the contract? (A) Coolidge implicitly approved the contract by recognizing its terms when he came back, Mrs. Coolidge was actin on behalf of husband and it was w/in her duty as acting manager to enter into a labor contract. (C) this is a clear contract to perform services. There’s no extraordinary or unusual labor, contract’s not unusual. Also, court decided from now on labor contracts are between laborer and manager, not between them and the crown (they have no contract w/ the crown).
o Expose underline assumptions in a case, are the assumptions true? Argue interpretation, fact, law and rules
o Assumption of contracts- agreement is voluntary and a reasonable person thinks this is a beneficial exchange
o Agreement- agent agrees to act on behalf of and subject to the control of the principal.
o Contract is not binding unless there’s authority: actual authority (1) express-there are express instructions for agent to take a particular action (2) implied- from wor

sinessman wants higher profits, so he makes goods more cheaply and w/ higher quality to get more business/more profits—standard of life goes up. Ppl have the perfect info to act rationally. Buyers and sellers are free to move in the marketplace. Acceptance of the allocation of wealth, no artificial barriers to marketplace.
§ Japanese-company is personified, a gift economy. Ppl feel loyal to companies.
Bargain- an agreement to exchange one thing for another gives rise to mutual obligations. If a promise is part of a deal, now its leaning toward a real exchange. The gift of the magi (husband turned in gold watch for hair combs) Deals are obligatory b/c both sides committed, other person will count on the deal.