valid until voided by a party with power to disaffirm it
incapacity (minor, lack of mental capacity, sufficiently under the incfluence of drugs or alcohol)
bankruptcy (a trustee in backruptcy option of disaffirming a contract of the bankrupt
6 requirements ofa valid contract
objective intent to enter into a contract
must be defintie
must be communicated to the offeree
lapse of time: fail to respond, a reasonable time.
revocation: communicated to the offeree
communicated in order to be effective, has to be before the offer is accepted.
rejection by words or conduct of the offeree
effective only when the offeror learns of it
becomes a new offer
original offeror and offeree have switched places.
death or legal incompetence
does not apply to an irrevocable offer
How of the valid acceptance
must staisfy or mirror the terms of the offer
acceptance must be communicated to the offeror
must in words or action, manifest objective intent to accept the offer.
knowing misrepresentaiton of a material fact, made with intent to deceive the other party who reasonably relies on the misrepresentation and as a result is injured.
fraud in the inducement: induced by misinterpretation to enter into the contract
fraud in the execution in which a person signs a document reasonably believing it to be one type of document.
focus on the state of mind induced
threatened act must be wrongful or illegal
persusion which tends to be coercive in nature- pressuer which works on a mental moreal or emotional weakness or vulnerability to such an extent that it approaches the bounds of coercion.
mistake of fact
mistake regarding a fact going to the essence of the aggrement and controlling the conduct of the parties.
mutual mistake: identity or existence of the subject matter of the contract, will render the contract voidable by either party
unilateral mistake: not ender a contract voidable unless there has been some misrepresntation by the other party which caused the mistake or the other other party knows or reasonably should know of the mistake and fails to act in good faith in the circumstances.
Statute of frauds
sale of goods in the amount of 500 or more
sale of personal property over 5000
credit agreement over 25000
contract for lease or sale of land
agreement that is not to be performed for more than one year
promise to answer debt, obligation , or default of another
agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry.
Third party beneficiary contracts
person who is not a party to a contract has no right ot enforce it. stranger may benefit indcidentally from a contract between others but may not sue to enforce it to realize the benefit.
Parol evidence rule
four corners doctrine:
needs to be unambiguous and clear and on one paper.
oral testimony is allowed to probe a susequent oral agreement
to clarify ambiguity in a written contract
to prove lack of genuine assent or contractual capactiy or illegality
generally is permitted unless
the contract prohibits assignment or
obligation of the assigning party is unique to that party and cannot be performed by someone else.
Remedies for breach of contract
compensatory damages- money?
punitive damages- punish
consequentional damages- reasonably foreseeable and knew of special circumstances.
the subject matter of the contract is unique property