BLAW201 Final EXAM Guide PDF

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Business Law 201: Contract Law Final Exam Guide

Criminal/Civil Law: 

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Civil Law: 90% of all law o Preponderance of evidence (51% to convict)—it was more than likely something occurred in a certain way o A lawyer will not be appointed if you can’t afford one Criminal Law: 10% of all law o Beyond a reasonable doubt o Pro Se: defending yourself

Deepwater Horizon Case Study:    

Complied with industry standards Environmentally sensitive area Fast-tracked to meet quotas Not using enough stabilizers o Blind Sheer Ram (used only one)—used when the blowout protector doesn’t work

What Makes a Contract?     

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There is no form to create a contract An oral contract is just as binding as a written one Documentary Evidence: tangible (i.e. a photograph) Testimonial Evidence: on behalf of someone / on someone’s account Three Basic Principles of Contracts: o Freedom of Contract:  Not political, it’s economic  The government can’t make a better decision that you can for yourself o Fairness:  Not relevant  Courts don’t care  Not caring about fairness incentivizes intelligence/preparation  “Buyer beware” – courts will not rescue o Intent:  “what you want to do and how to accomplish it”  if they can’t find your intent, they will void the deal. Types of Contracts: o Expressed:  Formal/sealed  Most important contract you will enter: marriage contract  Each side is clearly on all terms

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 May not be in writing  Clear consent is involved Implied:  Informal  Implied by conduct/acts  No consent really involved  Implied to pay what is given Quasi-k:  Officious intermeddler: you assume the power you do not have and meddle with it  Rarely parties in a contract  Equity: Based on fairness  No consent involved, didn’t even ask to enter a contract  A benefit has been incurred  Court imposed compensation/contract formation  One party has received unjust enrichment:  Taking a benefit, knowing that the giver needs to be paid  Quantum Merit: “as much as it is worth” for compensation  Not for morality, for legality  You cannot force a contract one someone Bilateral:  “a promise for a promise”  both sides are obligated Unilateral:  “a promise for an act”  open ended  unless and until someone acts  A wanted poster: classic example

Elements of a Contract: (Offers)       

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Puffing: “blowing smoke” or an invitation to negotiate o Doesn’t commit anyone to anything Ads don’t mean anything in terms of offers Ads are not offers: There are too many facts to negotiate Merchandise on display at a store is not an offer Price quotes on the phone are not offers Circulars in stores are not offers Exception: if an ad is so specific that there’s nothing left to negotiate o “first come, first serve” o Specified quantity In order for an offer to be valid, it must include all essential terms o Quantity o Price o Quality o Subject Matter

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o Who are the parties involved? o Sometimes: time to preform Requirements Contract: “all that you need” o example: buying all the stock of a product that you need for the rest of the year Output Contract: o “all you can produce” o As long as the #’s are objectively quantifiable the contract is valid o Use “due diligence” in order to determine quantity” In all contracts in America, there is an implied contract: “in good faith and fair dealing” o Not true in the negotiation of a contract: they can hurt each other as much as they can o Arm’s length deal/negotiation: hurt each other as much as possible o “Buddy deal”: more of an obligation because of a personal connection  Also known as fiduciary How much do you have to disclose? o There is no duty for a seller to disclose anything o If they ask specifically, you cannot lie or “overtly misrepresent” Communication of the offer: o Only the offeree can accept o The offer must be known o Must be acting in furtherance of a deal/contract Revocation: o Revoking of an offer o With no acceptance, there is no deal o Options Contract: mini contract within the offer  “I’ll give you ___ to keep this offer” Mirror Image Doctrine: o An acceptance must be the mirror image of what has been offered o Any deviation from the previous offer becomes void  Even a counteroffer

Contract Formation:   

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Counteroffer: acceptance with new terms o With a counteroffer, the roles of offeree/offeror are switched Silence is acceptance, unless there is prior course of dealing. What is the method of acceptance? o Within a reasonable period of time o Sooner rather than later  Price flocculating goods (oil, gold)  Perishable Goods (strawberries)  An item greater in demand Mailbox Rule: revocation is only valid if it is known, acceptance is only valid upon dispatch o You are bound as soon as it is mailed, not when it’s open

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o Revocation needs to be known o They make acceptance fast and revocation slow  It is presumed you open your mail in a typical course of business o The second you hit send, it is presumed to be received Conditional Offer: “you can accept this offer, only if you accept these conditions”...