BUS 393 Study Guide - Fall 2018, Comprehensive Midterm Notes - Negligence, Nikola Tesla, Canada
12 Oct 2018
School
Department
Course
Professor
BUS 393
MIDTERM EXAM
STUDY GUIDE
Fall 2018
CONTRACTS
• Contract law
applies to wherever the person receives it
- Voluntary exchange of promises that is legally enforceable
o Tickets, business contracts, apartment rentals, vending machines
- Specify the contract law that applies
- Acceptance date
- Must be written to be binding
• Elements
1. Consensus
2. Considerations
3. Capacity: Age?
4. Intention: Formalizing obligations in a contract
5. Legality: any rules against the contract? Legal and moral?
• Exclusion clause: part of contract if certain conditions are met
- Allow businesses to manage risk of liability
- Limitations and exclusions apply: asterick
- Powerful when people dont read contracts
• Breach, Mistake, Misrepresentation
- Innocence, Negligence and Fraudulence are easy avenues to get out of a
contract
• Duress and undue influence
- Say some do not want to participate in the agreement
- Undue influence: power influence from others pressures those to enter
- Duress: under threat
• Unconscionability
- Whether its unfair/unethical to enforce the contract
- Ie. A Water company selling water for only a fraction of the market value
o Youre getting good value for water: good statement but youre
being unconscionable
• Frustration
- No goods to trade as part of the contract
find more resources at oneclass.com
find more resources at oneclass.com
- Businesses can use exclusion clause
o When they dont meet the criteria
o Know rules and strategy (options)
- Argument: exclusions clause is not fair
• Dispute Resolution Clause
- When referred to the exclusion clause
o Was it disclosed?
• Agreement
- Moving on from the context
• Performance
- Honouring agreement OR
- If they cant perform:
o Court and remedies
▪ The value of a punishment (damages)
▪ Specifically perform obligation that was chosen to give
• Contract law: balancing act between freedom to contract as well as:
- Predictability and fairness to both businesses and their clients
- In order for it to be valid: (SEE ELEMENTS)
o
Offer
o
Acceptance of that offer
o
Consideration
o
Capacity
o
Legality
o
Intention
o
In writing
THE JUSTIN BIEBER CASE
Summary: Justin Bieber made all his guests sign a contract when hosting a party
agreeing not to record any happenings of what went inside. All guests were at risk
for paying $3 million.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Contracts: contract law applies to wherever the person receives it. Voluntary exchange of promises that is legally enforceable: tickets, business contracts, apartment rentals, vending machines. Legal and moral: exclusion clause: part of contract if certain conditions are met. Allow businesses to manage risk of liability. Powerful when people don(cid:284)t read contracts: breach, mistake, misrepresentation. Innocence, negligence and fraudulence are easy avenues to get out of a contract: duress and undue influence. Say some do not want to participate in the agreement. Undue influence: power influence from others pressures those to enter. Whether it(cid:284)s unfair/unethical to enforce the contract. A water company selling water for only a fraction of the market value (cid:283)you(cid:284)re getting good value for water(cid:284): good statement but you(cid:284)re being unconscionable: frustration. No goods to trade as part of the contract. Businesses can use exclusion clause: when they don(cid:284)t meet the criteria, know rules and strategy (options) Argument: exclusions clause is not fair: dispute resolution clause.
