Introduction to Law

Week 7

ReviewNegligence

Duty Breach Causation Damages

ReviewDuty

Trespassers Attractive Nuisance

Dangerous condition of which owner is aware O knows that kids frequent vicinity Condition likely to cause injury b/c of child’s

inability to appreciate the risk The expense of remedying the situation is slight

compared with the risk

ReviewVicarious Liability

Employees Contractors

DefinitionA contract is a promise or set of

promises, for breach of which the law gives a remedy

Express Contract Promises are communicated by language

X promises to paint Y’s car in return for Y’s promise to pay X $100.

Implied Contract Parties’ conduct indicates that they

assented to be bound X fills her car with gas at Y’s gas station. There

is a contract for purchase and sale of gas. X watches Y paint X’s house, knowing the Y

mistakenly thought they had an agreement for Y to be paid for it.

Quasi-Contract One party is unjustly enriched at the

expense of the other party, so that the enriched party must pay restitution to the other party equal to the unjust enrichment.

X contracts with Y to build a house for Y. X becomes ill and is unable to continue after completing a third of the work. X cannot sue on the contract, but may recover the benefit conferred on Y.

The Elements of a ContractOfferAcceptanceConsideration

Offer Offer – promise, undertaking, or commitment

with definite and certain terms communicated to offeree

Offeror must manifest an intention to become legally bound E.g., I will sell my car to you for $500 Can’t be made in jest Advertisements are an invitation for someone to

make an offer

OfferMust be accepted in the manner

specified If not specified, any reasonable method of

acceptance is okayOpen until specified

If not specified, open for a “reasonable period of time”

OfferCommunications that do not constitute

offers: Opinions about future results Statements of intention Invitations to submit a bid Price estimates Advertisements, catalogs, mass mailings Auctions with reserve

Acceptance Acceptance before termination by revocation,

rejection, or operation of law Must accept the offer on the terms proposed

If any of the terms are changed, it is not an acceptance but a counter offer

E.g., I accept your offer, I will buy your car for $500 E.g., I will buy your car for $450 E.g., I will buy your car for $500 plus new tires

ConsiderationConsideration requires a bargained

exchange of something of legal value Can be to a third party Gifts –

No bargain involved when one party gives a gift to another

ConsiderationPast consideration

A promise given in exchange for something already done does not satisfy the bargain requirement

Preexisting Legal Duty Traditionally, performing or promising to

perform an existing legal duty is insufficient consideration

ConsiderationCan exist where a party:

Engages in an act that the party was not previously obligated to perform; or

Refrains from exercising a legal right

Defenses Mistake

Usually must be a mutual mistake, but sometimes a unilateral mistake will do

Lack of capacity Under age, not mentally competent Contract may be void or voidable

Illegality Contract is void

Statute of frauds

Statute of Frauds Some agreements must be in writing to be

valid Promises to answer for the debts or default of

another Promises made in consideration of marriage Promises creating an interest in land Promises that by their terms cannot be performed

within one year Agreements for the sale of goods for $500 or more

Sandra Ypres is a realtor living and working in San Dimas, California. Bosworth Hallifax, a personal injury attorney based in nearby Riverside, knows Sandra casually through mutual acquaintances. At 9:00 a.m. on Monday, June 30, 2003, Sandra faxed Bosworth a letter stating that she had 100 acres of undeveloped land, at the intersection of Wyld Stallyns Drive and No Way, which she would sell him for $1,000 per acre.

Sandra's letter also stated: "Unless I receive your written acceptance by 5:00 p.m. on Thursday, July 3, 2003, my offer will expire. I will not offer this same acreage to any other prospective buyer until 5:00 p.m. on Thursday, July 3, 2003, or until you reject this offer, whichever occurs first."

Across the bottom of Sandra's letter was printed "Sandra Ypres, Realtor - 2400 Baja Grande Dr., San Dimas, CA 90735 - Tel: (562) 555-1234 - Fax: (562) 555-9876 - E-Mail: sandra2400@yippie.com." At 1:00 p.m. on July 3rd, just before he rushed out of the house to catch a flight to Akron, Bosworth sent an e-mail to "sandra2400@yippie.com" stating: "I agree to buy your 100 acres for $1,000 per acre. Have a great Fourth of July!"

Bosworth's e-mail reached Sandra's e-mailbox less than a minute later, but she did not check her e-mail until after 5:00 p.m. on July 3rd. 

Was Sandra's fax an offer to sell Bosworth 100 acres of undeveloped land for $1,000 per acre?

Methuselah was getting along in years and wanted to provide for his grandson Noah's future. Over dinner one evening, Methuselah asked Noah what he would like Methuselah to leave him after Methuselah died. Noah replied that he was very fond of Methuselah's chinchilla ranch. "Very well," said Methuselah, "I will change my will to leave you the chinchilla ranch." "Thanks, Grandpa," Noah replied. "I'll make you proud."

Did Methuselah and Noah form a contract obligating Methuselah to amend his will to leave the chinchilla ranch to Noah?

Remedies Damages

General Consequential or special damages Reliance Restitution Liquidated damages Incidental damages Interest Punitive damages

Specific Enforcement