Tort Law

20 important questions on Tort Law

What are the 2 elements of consideration?

a. something of legally sufficient value must be given in exchange for the promise
b. there must be a bargained-for exchange

"Something of legally sufficient value" consists of:

a. a promise to do something that one has no prior legal duty to do
b. the performance of an action that one is otherwise not obligated to do (providing accounting services)
c. the refraining from an action that one has legal right to undertake (forbearance)

What 3 things make an agreement lack consideration?

a. Preexisting Duty- a promise to do what one already has a legal duty to do
               - Exception: unforeseen difficulties

b. Past Consideration- promises made in return for actions or events that have already taken place, the element bargained for exchange is missing
c. Illusory Promises- when the terms of the contract express such uncertainty of performance that the promisor has not definitely promised to do anything
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What are the 3 major methods of settling claims?

a. accord and satisfaction
b. release
c. covenant not to sue

When are releases considered binding? (3)

a. the agreement is made in good faith
b. the release contract is in signed writing
c. the contract is accompanied by consideration

What does it mean to have contractual capacity?

it means you have the legal right to enter into a contractual relationship

Rules regarding contracts with minors

a. a minor can enter into any contract that an adult can
b. the contract is voidable at the option of that minor
c. to avoid a contract, a minor only needs to clearly show an intention to not be bound by it
d. minor avoids a contract by disaffirming it

How can a minor disaffirm a contract?

the minor must express, through words or conduct, his or her intent not to be bound to the contract and they must disaffirm the entire contract

When can a minor disaffirm a contract?

at any time during minority or for a reasonable time after the minor reaches the age of majority

When is a contract ratified?

when an individual fails to disaffirm an executed contract within a reasonable time after reaching the age of majority

What is the result when a minor misrepresents their age?

the minor can still disaffirm the contract

What methods can a minor ratify a contract with?

Express- occurs when the individual, after reaching the age of majority, states orally or in writing that they intend to be bound by the contract
Implied- occurs when they don't say anything and keep the goods

Concerning mentally incompetent persons: When is a contract void, voidable or valid?

void- when a court has previously determined that person to be mentally incompetent, and appointed them a guardian
voidable- when the person was mentally incompetent at the time the contract was formed
valid- contract entered into by a mentally ill person if that person had capacity at the time the contract was formed

Contracts Contrary To Statute and Illegal (4)

a. contracts to commit a crime
b. Usary- charging an illegal rate of interest
c. Gambling Contracts
d. Licensing Statutes- being licensed for a job

What are some contracts contrary to public policy?

a. contracts to commit an immoral act (such as selling a child)
b. contracts that prohibit marriage
c. contracts in restraint of trade

What 3 elements are necessary for a valid covenant not to compete?

a. reasonable regarding scope of activity (nature of what you're doing)
b. reasonable regarding the timeframe
c. reasonable regarding geographical area

Unconscionable Clause or Contract

a contract or clause that is void on the basis of public policy because one party was forced to accept terms that are unfairly burdensome and that unfairly benefit the other party

Are all adhesion contracts unconscionable?

No, only those that unreasonably favor the drafter

When do courts enforce exculpatory clauses?

if they are reasonable, do not violate public policy, and do not protect parties from liability for intentional misconduct

Are parents liable for contacts made by their minor children?

No, except for contracts with necessaries which parents are required to provide

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