BUSFIN 3500 Irvine Final OSU Exam
Questions with Answers
contract - -a promise or set of promises for the breach of which the law
gives remedy of the performance of which the law in some way recognizes
as a duty
-set of legally enforceable promises
- covenant not to compete - -restrict what an employee may do after
leaving a co, often dictate where, when and whom an employee may work
- Elements of a Contract - -have to have all 4:
Agreement
Consideration
Capacity
Legality
- agreement - -element of a contract
mutual understanding
consists of an offer by offeror to enter into a contract and acceptance of the
terms by the offeree
- consideration - -required in every contract the bargained for exchange or
what each party gets in exchange for his or her promise under the contract
ex car for $
- capacity - -the legal ability to enter into a binding agreement minors don't
have it
- legality - -to be enforceable, contract CANNOT be illegal or against public
policy
- lack of genuine assent - -defense to the enforcement of a contract
supposed to be entered freely by both parties but sometimes the offeror
secures acceptance through improper means such as fraud, duress, undue
influence, or misrepresentation
- Defenses to a contract - -fraud, duress, undue influence, mistake,
misrepresentation, lack of writing
- objective theory of contracts - -in determining whether parties intended to
enter a contract, courts look at their objective words and behavior and do
not try to figure out what they might have been secretly intending
, - Sources of Contract Law - -Uniform Commercial Code (UCC)
Case Law
Convention on Contracts for International Sales of Goods (CISG) good-
movable tangible not services
Common law -> easier to look at restatements
- Uniform Commercial Code (UCC) - -became law in states when adopted
fully or pieces
sale of a good falls under it, if not common law
includes real property and of the shelf software
- bilateral contract - -A PROMISE + A PROMISE
if the offeror wants a promise from the offeree to form a binding contract
- unilateral contract - -the offeror wants the offeree to do something, not to
promise to do something most common a reward
- Purpose of Contracts - -create record
structure relationship between parties
allocate risk between parties
create consequences if a party fails to keep their promise
- express contracts - -clearly set forth in either written or spoken words
- implied contracts - -arise not from words from the conduct of the parties
implied in fact conditions:
1.) plaintiff provided some property or service to defendant
2.) plaintiff expected to be paid for such property or service and a reasonable
person would have expected to pay for it
- quasi contracts - -aka implied in law contracts but they are not actually
contracts rather in order to prevent one party from being unjustly enriched
at the expense of another, the courts impose contractual obligations on one
of the parties as if that party had entered into a contract
- Recovery in quasi contracts may be obtained when: - -1.) benefit is
conferred by the plaintiff upon the defendant
2.) defendant has knowledge of the benefit that is being bestowed upon her
3.) defendant retains the benefit under circumstances in which it would be
unjust to do without payment
- valid contract - -one that contains all legal elements, general rule valid
contract is one that will be enforced
- void contract - -in effect not a contract at all, either its object is illegal or it
has some defect so serious that it is not a contract
Questions with Answers
contract - -a promise or set of promises for the breach of which the law
gives remedy of the performance of which the law in some way recognizes
as a duty
-set of legally enforceable promises
- covenant not to compete - -restrict what an employee may do after
leaving a co, often dictate where, when and whom an employee may work
- Elements of a Contract - -have to have all 4:
Agreement
Consideration
Capacity
Legality
- agreement - -element of a contract
mutual understanding
consists of an offer by offeror to enter into a contract and acceptance of the
terms by the offeree
- consideration - -required in every contract the bargained for exchange or
what each party gets in exchange for his or her promise under the contract
ex car for $
- capacity - -the legal ability to enter into a binding agreement minors don't
have it
- legality - -to be enforceable, contract CANNOT be illegal or against public
policy
- lack of genuine assent - -defense to the enforcement of a contract
supposed to be entered freely by both parties but sometimes the offeror
secures acceptance through improper means such as fraud, duress, undue
influence, or misrepresentation
- Defenses to a contract - -fraud, duress, undue influence, mistake,
misrepresentation, lack of writing
- objective theory of contracts - -in determining whether parties intended to
enter a contract, courts look at their objective words and behavior and do
not try to figure out what they might have been secretly intending
, - Sources of Contract Law - -Uniform Commercial Code (UCC)
Case Law
Convention on Contracts for International Sales of Goods (CISG) good-
movable tangible not services
Common law -> easier to look at restatements
- Uniform Commercial Code (UCC) - -became law in states when adopted
fully or pieces
sale of a good falls under it, if not common law
includes real property and of the shelf software
- bilateral contract - -A PROMISE + A PROMISE
if the offeror wants a promise from the offeree to form a binding contract
- unilateral contract - -the offeror wants the offeree to do something, not to
promise to do something most common a reward
- Purpose of Contracts - -create record
structure relationship between parties
allocate risk between parties
create consequences if a party fails to keep their promise
- express contracts - -clearly set forth in either written or spoken words
- implied contracts - -arise not from words from the conduct of the parties
implied in fact conditions:
1.) plaintiff provided some property or service to defendant
2.) plaintiff expected to be paid for such property or service and a reasonable
person would have expected to pay for it
- quasi contracts - -aka implied in law contracts but they are not actually
contracts rather in order to prevent one party from being unjustly enriched
at the expense of another, the courts impose contractual obligations on one
of the parties as if that party had entered into a contract
- Recovery in quasi contracts may be obtained when: - -1.) benefit is
conferred by the plaintiff upon the defendant
2.) defendant has knowledge of the benefit that is being bestowed upon her
3.) defendant retains the benefit under circumstances in which it would be
unjust to do without payment
- valid contract - -one that contains all legal elements, general rule valid
contract is one that will be enforced
- void contract - -in effect not a contract at all, either its object is illegal or it
has some defect so serious that it is not a contract
