Contracts
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A contract is a promise or a set of
promises for the breach of which the law gives a remedy, or the
performance of which the law in some way recognizes as a duty.
A promise consists of offer and acceptance.
The intent has to be present and not future.
Ads
for rewards absent other circumstances are more likely to be offers.
While ads for commercial transactions are more likely to be preliminary
negotiations or invitations for offers.
In case of auctions the bidder is the offeror.
It is essential to the existence of a contract that there
should be:
1. Parties capable of
contracting;
2. Their voluntary consent;
3. A lawful object;
and,
4. A sufficient cause
or consideration.
In order for an acceptance to constitute a manifestation of assent, three criteria generally must be met:
1. There must be commitment which is:
a. not conditional.
b. On the terms proposed without variation.
Common law vs Statutory law
Common law – based on previous judicial decisions. These have the customs, community expectation of what is just.
Statutory law – decided by the legislature and codified.
UCC -> Uniform commercial code.
In this course we deal with article 2 deals with sales does not apply to services.
For goods UCC should apply for services judicial common law will apply.
Restatements -> Collection of common laws.
Codifying the rules vs leaving them to the common law.
Choice of courts and law
(1) A court, subject to
constitutional restrictions, will follow a statutory directive of its own state
on choice of law.
(2) When there is no such
directive, the factors relevant to the choice of the applicable rule of law
include
(a) the
needs of the interstate and international systems,
(b) the
relevant policies of the forum,
(c) the
relevant policies of other interested states and the relative interests of
those states in the determination of the particular issue,
(d) the
protection of justified expectations,
(e) the
basic policies underlying the particular field of law,
(f)
certainty, predictability and uniformity of result, and
(g)
ease in the determination and application of the law to be applied.
If we have diverse citizenship then the case goes to federal court. In
the Palmer vs Beverly enterprises we have Illinois citizen and
California citizen hence it goes to the federal courts.
Federal court of Illinois use the rules that prevail in Illinois state courts.
what are choice of law rules?
They tell us what law should apply.
Restatement says lets find the state which has the most significant relationship.
In Nortek v. Molnar
the case was filled in state court and then moved to the federal court
since a federal court will have diversity jurisdiction over the suite.
Nortek has suit going on in Rhode island
Molnar has suit going on in New York
Declarative judgement remedy – If person A is going to sue person B. Then Person A can go to the court and get it resolved.
Nortek filled for declarative judgement.
If we put in the contract what states law will apply then we can avoid the problem of choice of jurisdiction and law analysis.