BUS 340 Lecture Notes - Lecture 19: Quasi-Contract, Billiard Table, Novation
Michael Le
Arc
Bus 340
Business Law
Introduction to Contracts
● Formation of Contracts – Elements
● 1-Agreement
○ Offer
○ Acceptance
● 2-Consideration – each side has to give the other side something they didn’t have before
● 3-Legal Capacity
● 4-Legal Purpose (Object)
● All contract can be divided into:
○ Bilateral – Promise for a Promise
○ Unilateral – Promise for an Act
● Type of Contract
○ Express Contract – All of the terms are expressed
○ Implied-In-Fact – Missing termscould cause a lawsuit
■ Terms aren’t expressed but are filled in
● Ex; the newspaper vender that will be paid on Fridays
○ Implied-In-Terms (Quasi Contract) – Unknown Price to an applied contract
■ Force terms/contract to close a transition
● Ex; dry cleaners clothes
■ Unjust Enrichment – A person should never be unjustly enriched at another’s
cost
■ Customer must pay the merchant a “Reasonable Price” so they aren’t unjustly
enriched
■ Merchant must charge the customer a “Reasonable Price” so they aren’t
unjustly enriched
● What is a reasonable price?? Usually take the local average
● Contracts – Agreement
■ Start with the Offer and Acceptance
● Having both is called “Mutual Assent”
● You can only accept an offer communicated directly to you if the offer
is serious
○ Offer ceases – When does the offer cease to exist?
■ 1-Revocked by the person making the offer before it is accepted
■ 2-Rejection—including a counter offer
■ 3-Death—only if the offer wasn’t accepted before the death
■ 4-Illegality—must have legal goods – no contracts are valid on illegal goods
■ 5-Reasonable time—decide thru Starè Decisis
○ Mutual Assent—May be avoided if:
■ 1-Fraud or Misrepresentation – Fraud is intentional misrepresentation
■ 2-Mutual Mistake (two sided)/Unilateral Mistake (one sided)
Document Summary
2-consideration each side has to give the other side something they didn"t have before. Express contract all of the terms are expressed. Implied-in-fact missing terms could cause a lawsuit. Terms aren"t expressed but are filled in. Ex; the newspaper vender that will be paid on fridays. Implied-in-terms (quasi contract) unknown price to an applied contract. Unjust enrichment a person should never be unjustly enriched at another"s cost. Customer must pay the merchant a reasonable price so they aren"t unjustly enriched. Merchant must charge the customer a reasonable price so they aren"t unjustly enriched. You can only accept an offer communicated directly to you if the offer. Offer ceases when does the offer cease to exist? is serious. 1-revocked by the person making the offer before it is accepted. 3-death only if the offer wasn"t accepted before the death. 4-illegality must have legal goods no contracts are valid on illegal goods. 1-fraud or misrepresentation fraud is intentional misrepresentation.
