1. Agreement

2. Consideration

3. Contractual Capacity

4. Lawful Object

1. Genuineness of assent - the consent cannot be obtained by duress, undue influence, fraud

2. Writing and Form - must be in writing or proper form.

1. Laussez-faire

2. Classical Law of contracts

3. Uniform Commercial Code

Common Law of Contracts

This is not a law.

A compilation of model contract law principles drafted by legal scholars

A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective of the parties.

1. the words and conduct of the parties

2. the surrounding circumstances

A model act that establishes uniform legal rules for the formation and enforcement contracts and licenses.

- Not law until state adopts it as a statue

A contract entered into by way of echange of promises of the parties.

Ex: If you promise to paint my store by July 1, I will pay you $3,000. He says, "I promise."

A contraction in which the offeror's offer can be accepted only by the performance of an act by the oferee, "a promise for an act."

Ex: If you paint my shop by July i, I will pay $3,000.

- the offer can be accetped only by the painter's performance

A Contract that rquires a special form or method of creation:

1. Negotiable Instruments

2. Letters of Credit

3. Recognizance

4. Contracts underseal

A contract that is not formal. Valid Informal contracts are fully enforceable and may by sued upon breach.

-Misdemeanor

Valid informal contracts - lease, sale, service

Any words can be used in contracts

Meets all the essential elements to establish a contract; a contract that is enforceable by at least one of the parties.

Elements:

1. consists of an agreement

2. Legally sufficient consideration

3.contractual capacity

4. Accomplished a lawful object

No legal effect - it is as if no contract was ever made. Neither party is obligate to perform party. Neither party can enforce the contract.

ex: commit a crime

At least one party with the option to avoid his contractual obligations. If a contract is avoided, both aprties are released.

If the party with the option chooses to ratify the contract, both parties must fully perform their obligations.

All elements are met but there is some legal defense to the enforcement of the contract.

-contract is not in writing

- parties may voluntarily perform a contract that is unforceable

An agreement in oral or written words

ex: written agreement to buy and automobile

ex: oral to buy a neighbor's bike

Implied by conduct of parties:

1. Plaintiff provided property or services to the defendant

2. The plaintiff expected to be paid by the defendant and was not

3. The def was given the opportunity to reject the property, but failed to do so

ex: Taco Bell dog case

Implied-in-law

-Quasi Contract

An equittable doctrine whereby a court may award monetary damages (reasonable value) to a plaintiff for providing work or services to a def even though no actual contract existed

-prevent unjust enrichment

-does not apply to enforceable

1. Person confers a benefit to another but does not pay it

2. unjust for person not to pay

Ex: Hether-car accident-coma-has to pay costs

One party makes an offer that is accepted by the other party

-without mutual assent, no contract

Three elements:

1. Offeror must objectively intend to be bound by offer

2. the terms of the offer must be definite or reasonably certain

3. the offer must be communicated to the offeree

the intent is based off objective theory (judged by reasonable persons)

ex: I will buy your building for 2 million

-offeror's present intent to contract

1. Identification of parties

2. Identification of subject

3. consideration to be paid

4. time of performance

A term in a contract that can reasonably be supplied by the courts

ex: time or price

Rewards

May be communicated to the offeree by the offeror or 3rd party

1. offeror written statement

2. an act of the offeror that is inconsistent with the offer

Express words or conduct by the offeree that rejects an offer.

Rejection terminates the offer

1) destruction of the subject matter

2)death or incompetency of the offeror or offeree

3)Supervening illegality

-offer made illegal prior to the acceptance of the offer

4) lapse of time

Acceptance must be unequivocal

-mirror image rule: offeree must accept the terms stated

ex: grumbling acceptance is legal

An equivocal response is not a contract

Types of Communication                     effective when

offer                                            received by offeree

revocation                              received by offeree

rejection                          received by offeror

counteroffer                received by offeror

bilteral acceptance   dispatched by offeree

Time of acceptance: when it is mailed, it could be lost and still exist

Offeror can state that the acceptance is effective only upon actual receipt of the acceptance

Offer is not accepted if it is not properly dispatched

Offeror that received rejection letter before agreement contract holds the first

Acceptance must properly be dispatched: properly addressed, packaged, prepaid postage

Express authorization

Implied authorization

Allows minors to disaffirm most contracts they have entered into with adults.

- contract is voidable

The act or process of a minor voluntarily leaving home and living a part from his or her parents

Parents do not need to provide necessaries of life

A state of contractual incapacity as determined by law

1. adjudged insane

2. insane but not adjudged insane

Declared legally insane by a proper court or administrative agency. A contract entered into by a person adjudged insane is void.

No contract exists

Being insane but not having been adjudged insane by a court or an administrative agency. A contract entered into by such person is generaly voidable. Some states hold that such a contract is void.

Status quo

A person who is under cotractual incapacity because of ingestion of alcohol or drugs to the point of incompetence

-voidable - self-induced

The person to disaffirm if the contract was forced

Status quo

VOID

1. Contracts contrary to statutes

2. usury law - a law that sets an upper limit on the IR that can be changed on certain types of loans

3. contracts to commit crimes

4. gambling statutes - prohibit or regulate gambling, wagering, loterries, games of chance

5. Effect of Illegality - a doctrine which state that the courts will refuse to enforce or rescind an illegal contract and will leave the parties where it finds them

-innocent persons who were justifiably ignorant of the law or fact that made the contract illegal

6. in pari delicto - a situation in which both parties are equally at fault in an illegal contract

7. contracts contrary to Public policy - contract has negative impact on societ (immoral contract - a contract whose object is the commision of an act that society considers immoral)

A cotnract that unreasonably restrains trade

ex: Toyota, GM, Ford agree on fixed prices on automobiles - void contract

Requires a person or busienss to obtain a license from the gov prior to engaging in a specified occupation or activity.

- regulatory statutes - a licensing statue enacted to protect the public

ex: CPA, JD

A licensing statute with the primary purpose of raising revenue for the gov

-annual licensing fee

ex: If lawyer has not paid, he can still recover for his services

A contractual provision that relieves one or both of the parties to a contract from tort liability for ordinary negligence.

ex: parachute jumping contract

If you sued, court owuld enforce clause

Clauses affect public interest or result from superior bargaining power are void - illegal

A contract that courts refuse to enforce im part or at all because it is so oppressive or manifestly unfair as to be unjust

1. parties possessed severly unequal bargaining power

2. dominating party unreasonably used its power to obtain oppressive or manifestly unfair contract terms

3. adhering party had not reasonable alternative

1. refuse to enforce contract

2.refuse to enforce the unconscionable clause but enforce the remainder of the cotnract

3. limit the applicability of any unconscionable clause so as to avoid unconscionable result

preprinted forms whose terms the consumer cannot negotiate

ex: mortgages, leases

Permits oral contracts if

1. promise induces action or forbearance of action by another

2. the reliance on the oral promise was forseeable

3. injustice can be avoided only by enforcing oral promises

Void or Voidable

Ambiguous

Concerns of dealings

Fills in gap

Corrects obvious errors

Required Sigs

Integration of serverl writings

- incorporation by reference

Interpreting contract words and terms

-glossary and standard of interpretation

A promise in which one person agrees to answer for the debts or duties of another person. it is a contract between the creditor and the original creditor.

ex: credit card, car loan

Statutes are the primary source of criminal Law

Penal Code - a collection of criminal statutes

Regulatory Statutes - laws

1. incapaciatate the criminal so he or she will not harm society

2. provide a means to rehabilitate the criminal

3. deter others from similar acts

4. inhibit personal retribution by the victim

Gov is plaintiff

Gov is represented by a prosecutor

Def & defense attorney

Gov defense attorney = free

1. criminal act (actus reus) - guilty act - performance

2. criminal intent (mens rea) evil intent

1. Arrest

2. Bond

3. Indictment or Information

4. Arraignment

5. Plea Bargaining

6. The Criminal Trial

A fed statute that makes it a crime to

1. knowlingly engage in a money transaction unlawful

2. knowingly engage in financial transactions of unlawful

To: 1. knowlingly receive stolen property

2. intend to deprive the rightful owner of property

An agreement in which the accuse admits to a lesser crime than charge

A hearing during which the accused is brough before a court and is informed of charges and asked to enter a plea