Week 6 Contract Between Robert Nee and The Salesperson Is Voidable Discussion I attached my assignment below.*Please send it by TODAY (July 13) at 3pm (Eas

Week 6 Contract Between Robert Nee and The Salesperson Is Voidable Discussion I attached my assignment below.*Please send it by TODAY (July 13) at 3pm (Eastern Time Zone – USA) *Please send it by TODAY (July 13) at 3pm (Eastern Time Zone – USA)
*The Assignment should be approximately 1 page
Week 6 Discussion: Valid vs Voidable vs Void vs Unenforceable
Directions: You must first fully answer the question by creating a new thread, then respond
to at least two postings of others. Please note that you will not be able to see the responses of
other students in any discussion forum until after you have posted your own response.
Remember to support all legal assertions with appropriate citations to source materials.
On the way home from major dental surgery, Robert Nee stopped by his local car dealership.
Because of the surgery, he was still groggy from the anesthesia. Mr. Nee’s dentist had also given
him some powerful pain medication to minimize the pain in the mouth and jaw for the twenty-four
hour period following the procedure.
While at the dealership, Mr. Nee negotiates with a salesperson for the purchase and sale of a wellequipped Jaguar. Mr. Nee mentions the surgery to the salesperson, but the salesperson does not
notice anything out of the ordinary about this customer. The Jaguar Mr. Nee ultimately decided
upon is a top of the line vehicle and the cost is $97,000.00. Mr. Nee puts a $30,000.00 down
payment on the car by personal check and finances the rest. The transaction is reflected in
appropriate contract documents and invoices and complies with all federal, state, and local
regulations regarding the sale of a vehicle. All documentation is signed by both parties. The next
day, Mr. Nee receives a phone call from the dealership stating his new car is ready for pick up.
Mr. Nee does not really remember purchasing the car, although he has always wanted a Jaguar and
dreamed about buying one the night before. Is this contract valid, enforceable, void or voidable?
Fully explain your answer, defining all legal terms.
Reading:
https://www.law.cornell.edu/wex/contract
Short papers should be between 450 to 600 words.
EXAMPLE
Short Paper: Please identify a federal or state statute that relates to businesses. (Please
feel free to consult the following website for examples of state statutes regulating
corporations: http://www.law.cornell.edu/wex/table_corporations.) Do you agree or
disagree with the principles in this federal or state statute, and why? What effects do you
think this statute has had on businesses?
Answer:
I chose to look at the Intellectual Property law and its relationship to businesses. Under
the body of Intellectual Property law, federal patent and copyright laws help businesses
claim ownership of their ideas, designs, and slogans. Intellectual Property law protects
the products and ideas of individuals and businesses (“What Is IP Law?”). According to
the Cornell University Law School, intellectual property “is any product of the human
intellect that the law protects from unauthorized use by others” (“Intellectual Property”).
The law considers patents, copyrights, trademarks, and trade secrets to be intellectual
property. Each type of intellectual property has specific laws that control and govern
them.
A patent allows the holder to exclude other individuals from making, using, importing,
and selling the patent (“Patent”). The law has certain requirements that include patentable
subject matter, utility, novelty, nonobviousness, and enablement. (“Patent”). The
patentable subject matter requires the individual or business to signify what invention
will need protection (“Patent”). This requirement also states that the products should be a
human-made invention rather than a product of nature (“Patent”). I agree with this law
because it controls the amount of patentable inventions and removes the fake inventions.
The second requirement is whether or not the invention is useful and can be used in the
real world (“Patent”). Novelty requires that the invention isn’t known in other countries
(“Patent”). I also agree with this law because it also minimizes the amount of useless
inventions and the chance of individuals stealing ideas. The last requirement, enablement,
requires documentation of the process of making the product which makes sure that the
product can be carried out (“Patent”). All of these laws make it very challenging for
individuals or businesses to get patents.
A copyright can be reproduced, displayed, and distributed exclusively by the owner
(“Copyright”). Copyrights reduce the amount of replications and similar ideas. This law
is crucial to federal intellectual property law because it determines authorship. As
technology advances, so does the laws surrounding copyrights. Motion pictures and
sound recordings can now have copyrights (“Copyright”). Trademarks also help separate
businesses from each other. For example, GEICO’s slogan or trademark is “15 minutes
could save you 15% or more on car insurance.” Trademark law makes it so other
businesses can’t take this slogan as their own. Copyrights and trademarks are very
important to branding and originality of businesses.
I agree with the majority of federal intellectual property law. I think that the law is fair
and is very important to the longevity of businesses. Without patents, copyrights,
trademarks, and trade secrets, businesses would be stealing ideas and wrongfully using
them. The policies are very strict, but they benefit businesses that have good ideas and
follow the rules. These laws have a large effect on the credibility, prosperity, and
longevity of businesses. Without a patent, trademark, or a copyright, the ideas and
products of businesses aren’t protected properly. This can lead to unwanted replications
and the stealing of ideas. Patents, copyrights, and trademarks are crucial to a business’s
original ideas, designs, and slogans.
Works Cited
“Copyright.” LII / Legal Information Institute. N.p., n.d. Web. 22 Mar. 2016.
“Intellectual Property.” LII / Legal Information Institute. N.p., n.d. Web. 22 Mar. 2016.
“Patent.” LII / Legal Information Institute. N.p., n.d. Web. 22 Mar. 2016.
“Trade Secret.” LII / Legal Information Institute. N.p., n.d. Web. 22 Mar. 2016.
“Trademark.” LII / Legal Information Institute. N.p., n.d. Web. 22 Mar. 2016.
“What Is IP Law?” What Is IP Law? N.p., n.d. Web. 22 Mar. 2016.
Week Six
Chapter 11
Contract Requirements
A business needs enforceable contracts to assure cash flow. A
valid, enforceable contract generally requires.
1.
2.
3.
4.
5.
6.
Agreement (Offer and acceptance)
Consideration (Bargain for and legal value)
Contractual capacity (understand?)
Legality
Genuine Assent (voluntary?)
A required form, if applicable (Statute of Frauds)
Requirement #3: Capacity
• Parties to a contract must have capacity or they will be protected by
the law, allowing them to reject their contract.
• A lack of capacity makes a contract voidable.
• Parties need both legal capacity and actual capacity.
•Legal capacity is concerned with a party who needs to be protected because
the law says so – such as Minors
•Actual capacity is concerned with a party who does not understand the nature
and consequences of their actions when they entered the contract.
Who Lacks Capacity
• Minors (voidable)
• Under 18, not married, & not emancipated
• Can disaffirm contract at their options
• Ratify once turn 18, get married or emancipated
• Misrepresentation of Age – still a minor so can still disaffirm
• Intoxicated (voidable)
• Can disaffirm contract
• Insane
• Previously judged insane (void) – court has declared person insane. Any contract entered into
after that point is void
• Not previously judged insane (voidable) – period prior to being declared insane
Requirement #4: Legality
• A contract must be legal.
• If a contract or its consideration violates a law, the contract is void.
•Neither party can enforce it
•A court may separate out the illegal part of the contract and enforce what is left, if enough of the
contract remains.
• Some possible violations of law include:
•A contract that violates a criminal statute, such as a contract for drug dealing or illegal gambling.
•A contract that violates anti-trust laws, such as to create a monopoly or price-fixing.
•A contract that violates public policy
•A contract that prohibits marriage (a fundamental right) is void.
•A non-competition contract, where one party agrees not to compete in business with another party, can
be void.
•A non-competition contract will be enforceable if:
1. It is part of a contract for sale of a business or if it is part of an employment contract, and
2. The non-competition contract is not overly burdensome.
Requirement #5: Genuineness of Assent
• A contract requires genuine assent by the parties.
•They must have intended to agree.
•They entered the contract knowingly and voluntary.
• A lack of genuine assent can make the contract voidable.
•“Fraud” is an intentional misrepresentation of a material fact.
•Though there are exceptions, a statement of opinion is not fraud.
•The misrepresented fact must be important as to the contract and its value.
•“Innocent misrepresentation of a material fact” also results in a voidable contract, since one of
the parties is still deceived.
•“Duress” is where a contract is entered through force or threat of force.
•One party, the one deceived or forced into the contract, can reject the voidable contract.
•A contract entered due to “mutual mistake of a material fact” can be rejected by either party,
as they never truly agreed on anything.
Requirement #6:
Form/Statute of Frauds
• Statute of Frauds – Some oral contracts must be evidenced by a
signed writing to be enforceable in court.
• The general rule about oral contracts is that they are enforceable in court.
• An exception to that rule is that some contracts are considered so important,
complex or valuable that the law states they should be in writing.
Contracts that must be Written
1.
Interest in Land
2.
One Year Rule
3.
Collateral Contracts
4.
Promises made in consideration of marriage
5.
Sale of goods of $500 or more (UCC)
6.
Promise by executor/administrator to pay debts
7.
Lease of personal property that exceeds $1,000 over life of lease
8.
Covenants not to compete
Interest in Land
• Property can be real property or personal property.
• Real property is land and that which is in, over or attached to the land.
• Real property includes building and trees attached to the land as well as an easement to
use another’s land.
• A lease of real property is not real property. It is personal property.
• Personal property is any property that isn’t real property and includes:
• Tangible personal property, such as furniture, jewelry, cars, food or beverages; and
• Intangible personal property, such as intellectual property or shares of stock in a
corporation.
• To fall under this requirement, contract must be for real
property (land)
One Year Rule
• A contract that cannot, by its terms, be completed within one year.
• The issue is not how long the contract lasts, but what are the terms of the contract.
• If a contract could possibly be performed within one year, it does not have to be in
writing
• Ex – I agree to mow your grass for as long as you live. This agreement lasts 15
years. Does the original agreement have to be in writing?
• Answer – No, it could have been performed within one year (you could have
died). It does not matter that the contract actually took 15 years to perform.
Collateral, Marriage and Sale of Goods
• Collateral Contracts
• Pledging assets such as a car to secure the car loan
• Co-signers – Parents co-signed for student loans
• Marriage – all contracts revolving around marriage (marriage license, divorce,
alimony, pre-nuptial agreements, etc.)
• A contract for the sale of goods, valued in excess of $500.
• “Goods” are tangible personal property.
• This is a very low dollar amount which may cause a phoned-in food order to be
unenforceable.
Debts and Leases
• Promise by executor/administrator to pay debts out of an estate
• Only applies if executor paying out of own pocket
• If paying out of the estate funds, then does not fall under this requirement
• Lease of personal property that exceeds $1,000 over life of lease
• As with sale of goods, must be “tangible”
• Lease a car at $200 a month for 24 months – must be in writing because lease
value is $4,800 (200 X 24)
Non-Compete Agreements
• Agreement between an employee and employer
• Employee agrees not to work for a competitor once leaves
job
• 3 part test
1. Time – max of 2 years
2. Subject matter – same type of job duties
3. Geographic location – will it hurt the company (reasonableness
test but up to the jury)
Non-Compete Example
Chris was employed as a landscape designer with Splendid
Gardens, located in Winston-Salem, NC. He signed a covenant not
to compete when he was hired 2 years ago. The agreement states
that Chris cannot work in Splendid’s territory as a landscape
designer for 1 year after his employment ends. It further states
that Splendid’s territory is a 30 mile radius around Winston-Salem,
NC. Is this enforceable?
Answer – Yes. It is reasonable as to time (1 year is less than 2),
subject matter (it is limited to the same job Chris performed with
Splendid), and geographic location (30 miles is reasonable)
Exception to Statute of Frauds
•Partial performance can create an exception to the Statute of
Frauds.
• This means that even these oral contracts can be enforced without
a writing if the agreement has been partially performed.
• This exception requires that one or both of the parties has
sufficiently performed the contract to prove to a court that there
was a contract and prove the terms of that contract.
Writing Requirement
• The Statute of Frauds requires evidence of a signed writing.
• The writing need not be a long, formal contract.
• The signatures don’t need to be original. They can be photocopied,
faxed, emailed or electronic signatures.
• The writing must be signed, at least, by the one being sued for
breach of contract. The other party has 10 days to object once
received or bound by it
Vague vs Clear contracts
•A contract that is vague by its own language may need to be
interpreted by a court, if someone is suing to enforce it.
•Clearly written contracts, which include all of the elements
of a valid contract, are the best way to stay out of court.
Online Contracts
•Contracts formed online, by clicking “I Accept” or otherwise,
are generally valid and enforceable.
•A court may restrict the agreement to the terms that were readily
accessible to the accepting party.
•Thus terms that were contained in a scrolling box, which did not
need to be viewed or which were described in a separate web-page,
might not be enforceable.
Week Six
Chapter 10
Contracts and the Constitution
• Freedom to Contract Constitutionally Protected
Requirements of Contracts
A business needs enforceable contracts to assure cash flow. A
valid, enforceable contract generally requires.
1.
2.
3.
4.
5.
6.
Agreement (Offer and acceptance)
Consideration (Bargain for and legal value)
Contractual capacity (understand?)
Legality
Genuine Assent (Voluntary?)
A required form, if applicable (Statute of Frauds)
Bilateral vs Unilateral
• Bilateral Contracts
• Promise for a promise
• Ex – I will pay you $10,000 for your car and you agree
• Binding as soon as promises are exchanged (i.e. have legal rights)
• Unilateral Contracts
• promise for an act
• I will pay you $10 once you mow my lawn.
• Not binding until the person starts performing the required action (ex –
mowing the lawn)
Expressed vs Implied
• A contract can either be expressed or implied.
•Express Contract, where the contract and its terms are stated by the parties. An express
contract can be a:
•Written contract
•Verbal contract (Oral, but not written or signed)
•Implied Contract, where the contract and its terms are created by law, due to the conduct of
the parties.
•If the parties act like they have an agreement, a court can enforce the agreement
• Both kinds of contracts are interpreted by a court based upon what a reasonable person would
believe the contract terms were.
•The interpretation is a question of fact for a judge or jury based upon evidence of writings or
actions of the parties.
Valid, Void, Voidable or Unenforceable
• A contract can either be valid; void; voidable; or valid, but unenforceable.
• Valid Contract: Binding and enforceable by either party (meets all requirements)
• Void Contract: No legal effect
• Does not exist as far as the law is concerned.
• Neither party can enforce it.
• Voidable Contract: A binding contract, though one of the parties has the right to reject
(disaffirm) or enforce it.
• The one with the right to reject is protected by the law for some reason, i.e. they are a
minor.
• The other party does not get a choice.
• Valid, but unenforceable
• A contract that has the elements of a valid contract, but, for some reason, courts can no
longer enforce the contract.
Examples
• Valid – I offer to pay you $10,000 for your car and you accept.
• Void – I offer to pay you for a kilo of cocaine. Void because it is illegal
• Voidable – A minor offers to buy your car for $10,000 and you accept.
Voidable at the option of the minor because they are a minor.
• Unenforceable – We have a binding contract. I do not perform that
contract. 10 years later you decide to sue me. Unenforceable because
the Statute of Limitations (time period to file the lawsuit) has passed.
Requirement #1: Agreement
• Requires both offer and acceptance
Offer
• A contract requires that an offer was made by a party to the contract.
An offer must be:
•Sufficiently definite
•Sufficiently certain
•Communicated to the offeree (one receiving the offer)
• Advertisements and price quotes are usually considered invitations to
negotiate and not offers -they are usually communicated to the
general public and not to specific offeree(s)
• If something is not an offer, it cannot be accepted to create a
contract.
Termination of Offer
• Action of Parties
• Revocation – offeror takes back the offer (changes his/her mind)
• Rejection – offeree declines offer
• Counteroffer – offeree declines offer but makes new offer. Ex – You turn down the $10,000
sticker price on a car and offer $8,500 instead.
• Law
• Lapse of Time – stated or reasonable amount of time to accept
• Either party dies or becomes mentally incapacitated
• Subject matter of offer is destroyed (Offer to buy movie theater but it burns down before
offer is accepted)
Acceptance
•A contract also requires that the offer be accepted. The
elements of true acceptance are:
•It is sufficiently definite.
•It is sufficiently certain.
•It is communicated to the offeror.
•It complies with terms of the offer (Mirror Image Rule)
•A rejection terminates the offer.
•A non-complying acceptance is actually a counteroffer and
also terminates the original offer.
Requirement #2: Consideration
• Requires Bargain for Exchange and Legal Value
Consideration Overview
• A contract requires consideration
•Consideration is a bargained-for-exchange for value
•Each party gets something and each gives something
• If one party makes a promise to another, but nothing is promised in return, there is no
consideration to support the promise.
•The unsupported promise is a promise of a gift.
•A promise of a gift is generally unenforceable.
• Consideration can take one of four forms
•A thing of value, – foods, furniture, or money.
•A valuable service, – repair, legal or catering service.
•A valuable forbearance – giving up legal rig…
Purchase answer to see full
attachment