BMAL-590 week 1 module 2 section 2
statute: - correct answer ✔✔law made my legislature
bilateral contract: - correct answer ✔✔promise is exchanged for a promise.
Example: I promise to sell you my house for $50,000; you promise to buy my house for $50,000.
unilateral contract: - correct answer ✔✔there is only one promise, which is exchanged for an action.
Example: I promise to pay you $20 to mow my lawn. You don't promise to mow the lawn, you accept my
offer by the action of mowing my lawn.
contract common components: - correct answer ✔✔Offer + acceptance = agreement
Consideration (bargained-for exchange)
Capacity
Legal purpose
usury statutes: - correct answer ✔✔place a limit on the interest that can be charged on loans.
promissory estoppel: - correct answer ✔✔There was a promise.
The aggrieved party was justified in relying on the promise.
The consequences were foreseeable, and
The aggrieved party suffered an injustice.
For the doctrine of promissory estoppel to apply: - correct answer ✔✔There must be a promise.
, The promise must lead the aggrieved party to follow a course of action that would otherwise not have
been taken.
The possible consequences of the action should reasonably be foreseeable by the promisor.
An action taken on the promise would be eligible for some relief only if a failure to provide relief would
result in injustice.
Example: Suppose you live in New York, and have a job interview with a company in Los Angeles. The
hiring manager assures you the job is yours (the promise).
You rely on the promise, resign your job in New York and sell your home, and move to Los Angeles. Your
actions are reasonably foreseeable based on the promise of the job.
When you arrive in Los Angeles, the manager fails to hire you. You have suffered an injustice, and may be
able to recover damages (e.g., costs of your move and other losses) under the theory of promissory
estoppel.
unconscionability - correct answer ✔✔one party has enormous bargaining power while the other has
little or no bargaining power.
The procedural part of unconscionability is based on oppression and surprise.
oppression (in unconsciounability) - correct answer ✔✔occurs when there is no opportunity for
meaningful negotiation and one party can simply overwhelm the other.
Suprise (in unconsciounability) - correct answer ✔✔occurs when a provision that is sought to be
enforced is buried inside a large document and couched in language that a reasonable person cannot
understand.
Contracts required to be in writing to be enforced: - correct answer ✔✔Contracts in consideration of
marriage (e.g., prenuptial agreements)
Contracts that cannot be performed within one year (e.g., multi-year leases or employment contracts)
statute: - correct answer ✔✔law made my legislature
bilateral contract: - correct answer ✔✔promise is exchanged for a promise.
Example: I promise to sell you my house for $50,000; you promise to buy my house for $50,000.
unilateral contract: - correct answer ✔✔there is only one promise, which is exchanged for an action.
Example: I promise to pay you $20 to mow my lawn. You don't promise to mow the lawn, you accept my
offer by the action of mowing my lawn.
contract common components: - correct answer ✔✔Offer + acceptance = agreement
Consideration (bargained-for exchange)
Capacity
Legal purpose
usury statutes: - correct answer ✔✔place a limit on the interest that can be charged on loans.
promissory estoppel: - correct answer ✔✔There was a promise.
The aggrieved party was justified in relying on the promise.
The consequences were foreseeable, and
The aggrieved party suffered an injustice.
For the doctrine of promissory estoppel to apply: - correct answer ✔✔There must be a promise.
, The promise must lead the aggrieved party to follow a course of action that would otherwise not have
been taken.
The possible consequences of the action should reasonably be foreseeable by the promisor.
An action taken on the promise would be eligible for some relief only if a failure to provide relief would
result in injustice.
Example: Suppose you live in New York, and have a job interview with a company in Los Angeles. The
hiring manager assures you the job is yours (the promise).
You rely on the promise, resign your job in New York and sell your home, and move to Los Angeles. Your
actions are reasonably foreseeable based on the promise of the job.
When you arrive in Los Angeles, the manager fails to hire you. You have suffered an injustice, and may be
able to recover damages (e.g., costs of your move and other losses) under the theory of promissory
estoppel.
unconscionability - correct answer ✔✔one party has enormous bargaining power while the other has
little or no bargaining power.
The procedural part of unconscionability is based on oppression and surprise.
oppression (in unconsciounability) - correct answer ✔✔occurs when there is no opportunity for
meaningful negotiation and one party can simply overwhelm the other.
Suprise (in unconsciounability) - correct answer ✔✔occurs when a provision that is sought to be
enforced is buried inside a large document and couched in language that a reasonable person cannot
understand.
Contracts required to be in writing to be enforced: - correct answer ✔✔Contracts in consideration of
marriage (e.g., prenuptial agreements)
Contracts that cannot be performed within one year (e.g., multi-year leases or employment contracts)
