*Extract the rule/s of law from each case and memorize it like vocabulary!!!!
* State both sides of the argument!!!!
*Use all applicable facts from hypothetical!!!!
*Words to use on exam:
-Estoppel: A bar or impediment which precludes a person from asserting a fact or a right or prevents one from denying a fact.
-Privity: Contact, connection, or mutual interest between parties.
-Power of Acceptance:
-Meeting of the Minds: A contract requires mutual assent.
-Master of the Offer:
-Incorporation by Reference:
Contracts I Outline
I. Contract- A legally enforceable agreement.
a. What is the source of law? The answer to this question should be the first sentence of any exam in this course. 2 possible answers:
i. Common Law-Applies to any situation in which no sale of goods occurs. If there is a sale of goods, then your source is:
ii. UCC(Uniform Commercial Code): Applies to any situation in which there is a sale of goods.
1. Don’t be a jackass and forget to have the source of law be your first sentence on the exam. This was a freebie given by Templin on day 1.
Objective Theory of Contracts
II. Adhesion Contract-This is a “take it or leave it” contract where the submitting or “taking” party has no opportunity to bargain. The distinctive feature of an adhesion contract is that the weaker party has no choice. A court will allow an adhesion contract if:
a. The terms are plain & clear
b. The consumer understands & agrees with the terms
c. The terms are written within the reasonable expectations of the weaker party.
i. See Burch v. Second Judicial District Court of Nevada
III. Unconscionable- This is a contract which is unfair and unreasonable. Unconscionability requires both procedural and substantive unconscionability.
a. Procedural Unconscionability
i. Non-disclosure of terms. Not timely.
ii. The use of fraud or deceit.
iii. No opportunity for negotiation, take it or
resentation of the truth or concealment of a material fact to induce another to act to his or her detriment.
d. Duress: A threat of harm made to compel a person to do something.
VI. Rule: A contract will not be enforced if one of the parties to the contract has been induced to enter into the contract by fraudulent misrepresentations or concealments of material facts. See Park 100 Investors, Inc. v. Kartes(p.36)
Doctrine of Consideration
VII. Definition: Some right, interest, profit, or benefit accruing to one party or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other. Consideration means not so much that one party is profiting as that the other abandons some legal right in the present, or limits his legal freedom of action in the future, as an inducement for the promise of the first.
VIII. Checklist for Consideration: Memorize this Checklist!!!!!
Promise/Present Intent?
