Contracts and Tort

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Submitted By mmelobic
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A contract is a promise(s) for the breach of which the law gives a remedy, or the performance of which the law recognizes as a duty.

Showing a willingness to enter into a bargain in such a way that another person would interpret that they could accept and it would conclude the negotiations. It can be words, actions, advertisements (NOT negotiations, estimates or price quotes.)

Once an offer has been made, the other party can accept the offer in any reasonable way, including starting performance. The party who accepts can back out up until performance begins. Factors: Were terms finalized? Did performance begin?

A contract must include a promise and a return promise. It cannot only go in one direction: both parties have to get something valuable (a good or service). A promise of a gift is NOT enforceable because one party gets nothing. The exchange doesn’t have to be equal: one person may value something more than someone else.


Breach: Failure to perform

Substantial Performance: Doing exactly what is in the contract is not always possible, but the parties have to reasonably live up to the terms. If one party does not materially perform, the other party no longer has to perform.

If one party breaches:
Damages ‐ The party who is harmed can request money from the other party equal to the loss from the breach. The court said that you can recover damages for the difference between what you expected to get in the contract and what you actually got.
OR Specific performance ‐ If it is still possible to perform the contract, the court can require the party to perform.

Defenses (things that can make contracts void):
Unconscionability: If one party tricked another party into agreeing to an unfair contract (e.g.: trick poor or…...

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