Contracts Flow Charts
A. Compensatory Damages The Plaintiff (non-breaching party) is put in the position he/she/it would be in if promise had been performed. 1. Expectation Damages Expectation damages are designed to give the Plaintiff (non-breaching party) the “benefit of the bargain.” This means compensating the Plaintiff so that he is placed in the position he would have [...]
Category : Contracts Flow Charts
A valid contract requires two things: mutual assent and definiteness. In other words, the parties must agree, and the agreement must sufficiently define the parties’ obligations. A. Is there a promise? A promise is a manifestation of intent to be bound. The manifestation is tested by an objective, not subjective standard- a reasonable person would have to [...]
Category : Contracts Flow Charts
a. Can you identify the offer? i. Offer= A. manifestation of willingness to enter bargain B. so made as to justify another person in understanding that his or her assent to the bargain 1. is invited, and 2. will conclude it. ii. subissues: A. What type of assent is required? 1. bilateral contract: assent is a return [...]
Category : Contracts Flow Charts
i. An offer is: A. a manifestation of willingness to enter bargain B. so made as to justify another person in understanding that his or her assent to the bargain is invited, and will conclude it. Courts determine whether an offer has been made based on the following factors: 1. language 2. history of communications [...]
Category : Contracts Flow Charts
Under certain conditions, the offer will be terminated. The question then becomes whether the offer was terminated before it was accepted. The four terminators are: i. Lapse of time. Example: “the offer is open until December 7.” Use the Mailbox Rule to determine whether the offer was accepted before power to accept was terminated: Effective [...]
Category : Contracts Flow Charts
A. Option contract: a subsidiary promise to keep the offer open that is supported by consideration. B. Irrevocable by estoppel 1. An offer for a unilateral contract becomes irrevocable when relied upon. The offeror will be bound if one of three things is true: a. The offeree begins performance. b. The offeree tenders performance. tender= i) [...]
Category : Contracts Flow Charts
Consideration must be bargained for. Typically, it is a return promise or performance. 1. Return promise (for a bilateral contract). 2. Performance (for a unilateral contract). This can be: a. The promisee’s forbearance (not doing something). b. The promisee’s act (other than a promise). c. The creation, modification, or destruction of a legal relation. 3. [...]
Category : Contracts Flow Charts
It’s easier to understand UCC 2-207 and the Battle of the Forms if you work through an example. Here’s a flow chart of Brown Machine v. Hercules, 770 S.W.2d 416 (1989)
Category : Contracts Flow Charts
Click on the image to open a larger view in a new window. The Battle of the Forms happens when two parties exchange multiple documents in the process of negotiating a transaction. Naturally, one party’s document (or documents) will have different terms than the other’s. So the question is, whose terms govern the contract? There [...]
Category : Contracts Flow Charts
