Elements of a Contract correct answers 1. Offer
2. Acceptance
3. Consideration
4. Capacity
5. Legality
Offer correct answers Invites a definite response
Acceptance correct answers Clear manifestation of assent
Consideration correct answers What are you willing to give up to get what y...
LA245: Contracts || Already Graded A+.
Elements of a Contract correct answers 1. Offer
2. Acceptance
3. Consideration
4. Capacity
5. Legality
Offer correct answers Invites a definite response
Acceptance correct answers Clear manifestation of assent
Consideration correct answers What are you willing to give up to get what you want
Capacity correct answers 18+
Legality correct answers Of sound mind
Bilateral Contract correct answers Both parties make promises
Unilateral Contract correct answers Only one party makes a promise and the other side can only
accept by performance
Express Contracts correct answers Both parties have clearly stated the important terms of the
contract
David v. Mason: Facts correct answers ·Mason was surgeon/apothecary in the English town of
Thetford. David wanted to apprentice himself to Mason
·The two agreed that Davis would work for Mason, and that when Davis left, he would not be
allowed to set up a competing establishment within 10 miles of Thetford within 14 years. Davis
promised to pay 200 pounds if he violated the contract
·After 2 years, Mason dismissed David for misconduct, though Davis denied it and set up his
own practice within 10 miles of Mason's
·Davis admitted promising to pay the money, but he claimed that the agreement to 14 years was
unreasonable long to restrict him and that 10 miles was far enough
·He also added that it was harmful to the public health to restrict a doctor from practice his
profession
·He also argued that he shouldn't have to pay because he did not receive anything of that value
from Mason
Davis v. Mason: Issue correct answers Was the contract too unreasonable to enforce?
Davis v. Mason: Decision correct answers ·The public is not likely to be injured by an agreement
of this kind, since every other person is at liberty to practice as a surgeon in this town
·Judgement for the Plaintiff
·The judge didn't see it as unfair, so the contract stands
, ·Set a precedent: Courts assume that people who enter into an agreement do it with relatively.
They are reluctant to get involved in contracts, because all you are suing for is money, there's
almost never punitive damages
Implied Contracts correct answers •The words and conduct of the parties make it clear that the
parties intend an agreement
•Example: Tim come over on Saturday and mows your grass, so you pay him $50. He comes
back 3 more Saturdays, but on 4th Saturday, you don't pay him. You still owe him $50
DeMasse v. ITT Corporation: Facts correct answers ·Roger DeMasse and five others were
employees-at-will at ITT Corporation
·ITT issues an employee handbook, which it revised four times over two decades
·The first handbook stated that layoffs would be made in reverse order of seniority. The fifth
handbook states that that ITT does not guarantee continued employment to employees and
retains the right to terminate or lay them off. It also stated that ITT reserves the right to amend,
modify, or cancel this handbook, as well any of the policies outlined in it
·Four years later, ITT notified its hourly employees that layoff guidelines for hourly employees
would be based on not seniority, but on ability and performance
·Ten days later, six employees were laid off, though less senior employees kept their job
·The six employees sued
DeMasse v. ITT Corporation: Issue correct answers Did ITT have the right to unilaterally change
the layoff policy?
DeMasse v. ITT Corporation: Decision correct answers ·The first handbook promised that
layoffs would be based on seniority, and employees understood and relied on it
·Responsible employees at ITT understood that the longer they remained at ITT, the safer their
job was
·Company and employees worked together for many years with a common understanding, the
textbook definition of a contract
·The court found for the employees, because fundamental term of the job cannot be changed
UNILATERALLY
·In this case, the handbook is an implied contract and touches upon the consideration element of
contracts
Voidable Contract correct answers •If one party is a victim of fraud or misrepresentation in
forming a contract, then the contract is voidable and can be voided by the victim of the
misrepresentation
•A contract with a minor or someone who lacks capacity, the contract is voidable in favor of the
minor
Void correct answers A contract with illegal purpose is void, as if it never existed
Two Types of Recovery When There is No Contract correct answers 1. Promissory Estoppel
2. Quasi Contract
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