Legal Environment Test Cheat Sheet | BLAW 2361, Study notes of Business and Labour Law

Download Legal Environment Test Cheat Sheet | BLAW 2361 and more Study notes Business and Labour Law in PDF only on Docsity! 15 16 21 28 29 Consideration means that there must be bargaining that leads to an exchange between the parties (can be anything someone may want to bargain for)(promissory estoppels is an exception)(supports a contract) Promisor- is the person who makes the promise, Promisee-the person to whom the promise is made. Bargaining – each side is obligating itself in some way to induce the other side to agree (exchange of obligations for a deal to occur) Bargaining can be-another promise or action,a benefit to the promisor or a detriment to the promisee. a promise to do something or a promise to refrain from doing something. Not Condiseration-When a promise is not supported by consideration there is no contract (void) only a promise for a gift that is not legally enforceable Adequacy of consideration- Courts seldom inquire into (was is an intelligent bargain?) Previously paid benefit is generally not consideration because it was not meant to induce the other side to agree (exception: economic benefit) Illusory Promise-If one party’s promise is conditional, the other party is not bound to the agreement (not good consideration) Requirements contract- the buyer agrees to purchase 100% of its output to one buyer and the buyer agrees to accept the entire quantity (good faith supports consideration) Output contract- the seller guarantees to sell 100% of its output to one buyer, the buyer agrees to accept the entire quantity Section 2-306- expressly allows output and requirements contracts in the sale of goods. Preexisting duty- Additional work than what is obligated to do or modification to a contract is good consideration Past consideration- generally not consideration cannot make a promise based on the past liquidated debt is one in which there is no dispute about the amount owed (if the creditor agrees to take less than the full amount as full payment, her agreement is not binding)(If the debtor offers a different performance to settle the debt and the creditor agrees, the agreement is binding) unliquidated debt- the parties dispute whether any money is owed, or the parties agree that some money is owed but dispute how much. Accord and satisfaction- Agreement to settle for less than the creditor claims, actual payment of the promised sum. Common Law ruling-If a debtor writes “Full Settlement” on a check, and the creditor cashes it, the payment is in full whether or not it was the right amount UCC §3-311-Affirms the Common Law ruling, but adds two exceptions: that any offers to settle debt for less than the whole amount must be directed to a certain person, The creditor can refund the paid amount within 90 days and then demand the full amount. Insurance- Someone taking out a policy on the life of another must have an insurable interest in that person -- or else it becomes a “wager” on their life. Licensing Statues- When a licensing requirement protects the public, any contract made by an unlicensed worker is unenforceable, unless it is made to raise revenue (license to operate) Usury- prohibits charging excess interest on loans (more than 50%) Restraint of trade- To be valid, an agreement not to compete must be ancillary to a legitimate bargain (conditions must not be unreasonable) Ancillary- non competition agreement must be a part of a larger agreement Noncompete Clause- only enforceable if it is essential to the employer, fair to the employee and harmless to the general public Exculpatory Clauses- A contract provision that attempts to release one party from ability in the event the other one is injured Exculpatory clauses are very common in bailment cases Bailment means giving possession and control of personal property to another person Bailor-Person giving up possession Bailee- the one accepting possession Unconscionable contract is one that a court refuses to enforce because of fundamental unfairness (signing a contract on drugs) oppression -- meaning that one party used its superior power to force a contract on the weaker party surprise --meaning that the weaker party did not fully understand the consequences of its agreement. Adhesion contracts are standard form contracts prepared by one party and given to the other on a “take it or leave it” basis (They are generally enforced when the two parties are of equal power, if not considered Unconscionable)