Contracts - Law of Contract - Lecture Slides, Slides of Contract Law

Download Contracts - Law of Contract - Lecture Slides and more Slides Contract Law in PDF only on Docsity! Chapter 3 – Law of Contracts Definition and types of contracts Six Elements In Writing? Privity Interpretation Termination Impeachment, Remedies and Damages Docsity.com Definition and types “…an agreement based on an exchange of promises that the courts will enforce.” Void v. Voidable Unilateral v. Bilateral  Carlill v. Carbolic Smoke Ball Company Multi-lateral Docsity.com Acceptance Must be unconditional – positive and unambiguous  Rejection terminates  Counteroffer – also rejects  Method of communication  Post-box rule or when and where received CONSENSUS is an unconditional acceptance of an offer  Case – Bawitko Investments v Kernels Popcorn Ltd Docsity.com Consideration and Intention “ the price (something of value) a party pays for a promise” Gratuitous promise is not consideration Under seal replaces consideration Need not be “fair” consideration – but beware unconscionable transaction Past or illegal consideration Intention assumed in business, not family Docsity.com Capacity Contract voidable if no capacity Mental Minors  Necessaries, but not in B.C.  Case – Tonnelli v Toronto Marlies Hockey Team Agents and Principals Powers of Attorney Spouses and cohabitants Docsity.com Requirement of Writing Land – except Part Performance Domestic contracts Guarantees Estate trustee‟s promise Minors Longer than a year Sale of goods – of certain amount – not in B.C. Consumer protection – future delivery or payment Docsity.com Privity of contract “the obligations and benefits under a contract are confined to the parties to the contract” Nine (9) exceptions: Tort law bypass Trusts Life insurance policies Docsity.com Privity of contract - exceptions Principals and agents Vicarious liability of an employer for breaches of employees Collateral warranties Novation – a new contract Interests in land – purchaser assumes the mortgage Assignment of rights – a creditor assigns the rights to collect a debt to a third party Docsity.com Termination of Contracts # Discharge of contracts # Impeachment Breach ® Docsity.com Termination - Discharge of contracts By Performance By Agreement By Frustration – completion is impossible By Operation of the law - bankruptcy Docsity.com Termination – Impeachment Duress and Undue influence Mistake  Common  Mutual  Unilateral Misrepresentation  Innocent  Negligent  Fraudulent Utmost Good Faith Non Est Factum Docsity.com Remedies Limitation period Necessity of loss Duty to mitigate Rectification Rescission Injunction Specific Performance Quantum meruit Docsity.com Damages Nominal Liquidated Expenses and Loss of Profit “accounting” General Punitive and Exemplary Docsity.com Contract – case law Liability for breach  Case - Pitt v Executive Travel Ltd. ‟89 – leased Concorde to circle the North Pole and see curvature of earth – breach of contract?. Enforceability of player contract  Case – Sheehy v Edmonton World Hockey ‟79 – Sheehy traded to Edmonton from New England, contract required payment of $10,000 to Sheehy if traded, then traded to Birmingham. Edmonton must pay $10K, I.e., old contract becomes new contract Docsity.com Contract – sale of facilities Case – Arrowsmith Mountain Recreation Ltd. V Haas  Land purchased, plan to upgrade ski hill  Buyer repudiated since municipality would not allow development plan  Successful; this was breach of contract Docsity.com Contract – misunderstanding, mistake, unilateral contract Case – Michaud v. Grand Falls Golf Club  Hole-in-one on #2 hole of a shot-gun start of a 18 hole tournament on a 9 hole course. Michaud started at #3. When he got to his 11th hole, I.e., the hole marked “#2”, he shot a hole-in-one. He claimed his prize (a new car). The club claimed it had to be his second hole. Plaintiff successful Docsity.com Contract – freedom to contract, even if bad deal Case – Hawes v Sherwood-Parkdale Hockey Club  Hawes signed a one year contract. Cut after one- month, inadequate play. Hawes lost.  His failure to perform relinquished the Club‟s obligation – court accepted an implied term that the normal conditions effecting junior hockey contracts (release if not performing) existed.  “breach is the converse of performance” Docsity.com Contract – remedies – specific performance Specific performance is not normally ordered in „personal service‟ contracts Case – Kapp v BC Lions Football Club  Kapp suspended by BC Lions who, with the CFL, received an injunction barring Kapp from playing for the remainder of his contract (1 year)  Kapp appealed – court refused appeal  To accept the appeal would be an order of specific performance of a personal service contract (and the Lions would not have any control over quality) Docsity.com Contract – remedies – injunction „prohibitory injunction‟ – an order NOT to do something, „mandatory injunction‟ – an order to DO something Case – Hanson v. Ont. U. Athletic Assn.  Injunction prohibiting a eligibility after a number years of play. Case – Kernaghan v Softball Sask.  Injunction allowed pregnant player to play in league. Docsity.com Contract – remedies – interim or interlocutory injunction „interim injunction‟ – a short-term order to remedy an immediate problem Case – Sheddon v Ont. Major Junior Hockey League  Sheddon suspended from play in the OMJH because he played for Kitchener while under contract with Guelph.  Interim injunction allowed him to play since it would hurt his possible professional career if he could not.  The remedy to Guelph was still to be determined. Docsity.com Contract – capacity to contract Case – Gretzky v Ont. Minor Hockey Assoc (1975)  Interim injunction sought, by the OMH, against Gretzky to enforce a contract to play.  Not granted as contracts with players under the age of majority are unenforceable. Docsity.com Contract law - Agency law and assignment of rights When an agent negotiates an employment contract with a team, the contract is between the principal (the player) and the third party (the team) If the contract stipulates, contractual rights may be transferred or “assigned” to a new party (I.e., another team) when a player is traded. Case – Cranmer v. B.C. Lions Football Club  Cranmer traded from an eastern conference team to a western conference team (BC) which had a longer schedule.  Cranmer refused to play unless he was paid more and had moving expenses paid, all of which were not part of his contract.  Cranmer‟s action dismissed – his contract was fully assignable. Docsity.com