CONTRACTS

http://www.terry.uga.edu/~pshedd/webpresentationfiles/contracts/

 

1.              General Principles

1.1       common law contracts

1.2       definition - promise/agreement, the breach of which, the law provides a remedy

1.3       types of contracts

1.3.1        express

1.3.2        implied

1.3.3        quasi

1.4       classifying contracts as to validity

1.4.1        valid

1.4.2        void

1.4.3        voidable

1.4.4        unenforceable

 

2.              Creation of a contract

2.1       Offer

2.2       Acceptance

2.3       Consideration

 

3.              offer

3.1       promise/undertaking/commitment/proposal

3.2       definite and certain

3.2.1        terms must be specific

3.2.1.1          identity of the offeree

3.2.1.2          subject matter

3.2.1.3          price

3.2.1.4          time of payment

3.2.1.5          quantity

3.2.1.6          nature of work

 

3.3       communicated

3.3.1        broader the method of communicating the offer, the more likely it is not an offer

3.3.2        inquiries

 

3.4       terminating the offer

3.4.1        revocation

3.4.1.1          detrimental reliance

3.4.1.2          communication

3.4.1.3          effective upon receipt

3.4.2        rejection

3.4.3        counteroffer

3.4.4        lapse of time

3.4.5        law

3.4.6        insanity or death

3.4.7        destruction of subject matter

 

4.              acceptance

4.1       party to whom offer is made can only accept

4.2       acceptance must be on same terms as offer

4.2.1        UCC difference

4.3       communication

4.3.   mail box rule

4.4       acceptance is effective upon receipt

 

5.              consideration

5.1       bargain for exchange

5.2       what cannot be consideration

5.2.1        past consideration

5.2.2        pre-existing legal obligation

 

6.              Defenses

6.1       mistake

6.1.1        mutual

6.1.2        unilateral

6.2       ambiguity

6.3       misrepresentation/fraud

6.4       illegality

6.5       capacity

6.5.1        age

6.5.2        mental state

6.5.3        intoxication

6.6       statute of frauds:  the following contracts must be in writing to be enforceable

6.6.1        executor/administrator of a will

6.6.2        debt of another

6.6.3        consideration of marriage

6.6.4        real estate

6.6.5        performance within one year

6.6.6        goods more than $500

6.7       unconscionability

 

7.              Third Party Contracts

7.1       third party beneficiary contracts

7.2       assignment

7.3       delegation

 

8.              Rules of Construction

8.1       parol evidence rule

8.2       conditions

8.2.1        precedent

8.2.2        concurrent

8.2.3        subsequent

 

9.              Discharge

9.1       performance

9.2       illegality

9.3       impossibility

9.4       recission

9.5       modification

9.6       novation

9.7       release, cancellation

9.8       time

 

10.       Breach of Contract

10.1                        material or minor breach

 

11.       Remedies

11.1                        damages

11.1.1 compensatory

11.1.2 consequential

11.1.3 incidental

11.1.4 nominal

11.1.5 liquidated damages

11.1.5.1   uncertain, speculative at the beginning of the contract

11.1.5.2   no penalty

11.2                        remedies for sellers and buyers

11.2.1 seller-resell, withhold delivery, stop delivery, cancel, recover price/damages

11.2.2 buyer-substitute goods, cancel, cover, specific performance, damages

11.2.3 anticipatory repudiation

11.3                        duty to mitigate damages

11.4                        quasi contract