Class notes
BUL 4421 Final Exam Review Notes
- Course
- BUL 4421
- Institution
- Florida Atlantic University
Bul 4421 final review - Lecture notes Chapters 13-20; 50,51; and 32b
[Show more]
Content preview
Chapter 13 Contract- a promise or set of promises for the breach of which the law gives a remedy or
the performance of which the law in some way recognizes a duty.
Agreement- consists of an offer by one party, called the offeror, to enter into a contract
and an acceptance of the terms of the offer by the other party, called the offeree
Consideration- the bargained for exchange or what each party gets in exchange for his
or her promise under the contract.
Contractual capacity- the legal ability to enter into a binding agreement
o Most adults over the age of majority have capacity; those under the age of
majority, people suffering from mental illness, and sufficiently intoxicated
persons do not.
Objective theory of contracts- we base the existence of a contract on the parties’
outward manifestations of intent and we base its interpretation on how a reasonable
person would interpret it
o The subjective intent of parties is not usually relevant; what matters is how they
represented their intent through their actions and words.
Bilateral contract- a promise in exchange for a promise. As soon as the promises
exchanged, a contract is formed and the parties’ legal obligations arise.
Unilateral contract- requires performance in order to form a contract (i.e. a promise + a
requested action). The offeror wants the offeree to do something, not promise to do
something.
Express contract: the terms of the contract are all clearly set forth in either written or
spoken words
Implied contract- arise not from words but from the conduct of the parties.
Void contract- not a contract at all. Either its object is illegal or it has some defect so
serious it is not a contract.
Voidable contract- one or both of the parties has the ability to either withdraw from the
contract or enforce it.
Chapter 14
Option contract- the offeree gives the offeror consideration in exchange for holding the
offer open for a specified period of time.
Revocation- the offeror can revoke the offer at any time unless the offeree entered into
an option contract with the offeror. Revocation is effective when the offeree receives it.
Rejection- another way to terminate the offer, effectuated by the offeree. Regardless of
how long the offer was stated to be open, once the offeree rejects it, it is terminated.
Counteroffer- an offer made by an offeree to his offeror relating to the same matter as
the original and proposing a substituted bargain differing from that proposed in the
original offer
o A counteroffer terminates the original offer.
Destruction or subsequent illegality of the subject matter- if the subject matter of the
offer is destroyed or becomes illegal, the offer immediately terminates.
Lapse of time- if the offer states ut wukk be held open for only a certain tie, it
terminates when that time expires.
, o In the absence of such a time condition, the offer will expire after the lapse of a
reasonable amount of time.
Authorized means of acceptance- if the offer specifies that acceptance must be
communicated by a specific mode, that mode is the only means for accepting the offer.
o If no mode of communication is specified in the offer any reasonable means of
acceptance is valid.
Unauthorized means of acceptance- when an offer specifies that acceptance must be
communicated by a particular mode, no their form of acceptance is valid
o Note- for a unilateral contract, only performance by the offeree constitutes a
valid acceptance.
Chapter 15
Consideration- what a person will receive in return for performing a contract obligation.
o Types of consideration
A benefit to the promise
A detriment to the promiser
A promise to do something
A promise to refrain from doing something.
Adequacy of consideration-
o The court seldom considers adequacy of consideration
o The court does not weigh whether you made a good bargain
Exception: if the court believes fraud or undue influence occurred, the
court may look at adequacy of consideration.
Illusory promise
o Is not a promise at all
o An illusory promise is not consideration
o E.g., Shawn offers to sell molly his skis for $300, and Molly responds “ill look at
them in the morning, and I like them, ill pay you”
Enforcement of promise
o For a court to enforce a promise, both parties must provide valid consideration,
consideration by one party only is insufficient to support an enforceable contract.
Preexisting duty rule
o Performance of a duty you are obligated to do under the law is not consideration
o Performance of an existing contractual duty is not good consideration
Partial payment of a debt
o Liquidated debt- no dispute that money is owed or how much
o Unliquidated debt- the parties either disagree about whether money is owed or
dispute the amount- the parties cans settle for less the full amount if they enter
into an accord and satisfaction.
Accord and satisfaction
o Settling to pay an unliquidated debt for less than the full amount required:
The debt is unliquidated
The creditor agree to accept as full payment less than it claims is owed
The debtor pays the amount they have agreed on
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller anyiamgeorge19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now