Chapter 10 section 1-2
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This document summarizes key points from a business law textbook about contractual capacity and the ability to disaffirm contracts. It discusses who has contractual capacity, such as minors, intoxicated or mentally incapacitated individuals. Minors can disaffirm non-necessary contracts both during and after reaching the age of majority. There are exceptions where contracts cannot be disaffirmed, like court-approved contracts, marriages, and work contracts. The document also addresses the consequences of misrepresenting one's age when entering a contract.
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Business Law Principles and Practices Goldman, A., & S.docx
Business Law
Principles and Practices
Goldman, A., & Sigismond, W. (2014). Business Law: Principles and Practices (9th ed.). South-
Western Cengage Learning.
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PRINCIPLES AND PRACTICES
apacity
APTER PREVIEW
inor's Rights and Obligations
erv1ew
ors' Right to Disaffirm a Contract
- : eptions to a Minor's Right to Disaffirm a
Contract
ors' Right to Ratify a Contract
-,..epresentation of Age by a Minor
- ors' Liability for Necessaries
-ems' Liability for Minors' Contract
- rs' Liability for Torts
ons Under the Influence of
cohol or Other Drugs
ally Incompetent Persons
- -al Incompetence Determined by a
.=ourt
- 1 Incompetence Not Determined by a
:ourt
169 '
CHAPTER
HIGHLIGHTS
: ~,'
I]] 0
IN A BUSINESS
SETTING
Capacity to Contract =----
LEARNING OBJECTIVE~
Define capacity to contract.
capacity to contract: legal and
mental ability to understand the
nature of an enforceable agreement
disaffirmance: refusal of incompetent
party to carry out the terms of an
agreement
This chapter explores the third required element of a legally enforceable
contract, namely, the capacity to contract. You will learn that certain classes o
persons have only limited or no power to contract. The remainder of the
chapter outlines in some detail the liabilities of these individuals on ordinary
contracts and for those contracts involving goods and services that the law
considers necessary to life and health. It will be interesting to learn how far the
law goes to protect minors, and even refer to them as "infants" in many of thei•
court decisions.
Andy, a 17%-year-old minor, purchased an expensive computer at Pace Computers
for $2,500 and paid cash from his savings account. The purchase was for
pleasure purposes . At the time of the sale, the salesperson was aware that Andy
was a minor but made the sale anyway, thinking of the commission he would
receive. Later on, Andy's girlfriend convinced him to take an overseas trip with
her to several European countries. Since he needed all the money he could get
{his savings account was depleted), he returned to Pace Computers to return the
computer and to demand the return of the purchase price, claiming that he had
a right to do so because of his protected status. The manager looked at Andy's
driver's license and claimed that Andy was now an adult since he had turned
18 years of age and could no longer disaffirm the contract. Actually, Andy had
passed his eighteenth birthday by two days.
Questions
1. Was it unethical (unfair) for Andy to return the computer and demand his
money back?
2. Could the manager refuse to take back the computer?
Capacity to contract is the legal and mental ability of a person to understand th at
he or she is entering into an agreement that is enforceable by law. It is a defens e
available to an otherwise valid contrac ...
ContractsA contract is based on promises .docx
Contracts
A contract
is based
on promises
voluntarily
made
Do all
promises
give rise to
contractual
obligations?
OfferAcceptanceConsiderationCapacityLegality
Unilateral and bilateral Expressed and impliedValidVoid and voidableUnenforceable
PROMISE
FOR AN
ACT
Reward is
an example
PROMISE
FOR A
PROMISE
ART AGREES TO PAINT HOUSE AND BOB AGREES TO PAY $1,000.
Bill and Linda meet at a party. He was
74, and she was 49. A month later, they
started to talk about marriage. Linda was
concerned about quitting her job, and Bill said he would give her whatever she needed. One day, she walked into the bathroom with a handwritten note containing financial terms for a marriage, and he signed it. They got married, but Bill filed for divorce 1 ½ years later.
What is the issue?
Does the contract given to and signed by the husband in the bathroom constitute a valid and enforceable agreement that was freely
entered into?
What kind of agreement was it, unilateral or bilateral?
It was unilateral because it was an agreement to marry.
How did the court rule?
To be enforceable, the agreement must be freely entered into without duress or undue influence. When marriage is contemplated, the parties must do so knowing of the assets of the other. In this case, the parties never disclosed their assets, liabilities or income. The husband also never had the chance to consult an attorney. Therefore, the agreement is not enforceable.
Stated in direct
termsCan be written
or oral
I will sell you my sports car for $25,000
When you
go to the
doctor, you
impliedly
agree to pay
for services.
Plaintiffs cared for the decedent for
several months before he died. They
claimed they were promised payment
for services. Defendant maintains that
they are a family member so services
were gratuitously rendered.
Contract implied-in–fact is to prevent
unjust result. Normally, there is a presumption
that services rendered by a family member
are free. However, contract may be implied
when service are performed with expectation
of payment. In this case, plaintiffs can point
to no evidence that they agreed upon a
price with the decedent, what form
payment would take, or when payment
would be made, so a contract should
not be implied.
Satisfies all
requirements of
an enforceable
agreement
Binds one party
but gives the other
option to withdraw
Element of
contract has
no legal force
or effect
ILLEGAL
CONTRACT
Satisfies elements of
a valid contract but
won't be enforced
by court
Most contracts
are oral in nature
and can be enforceable.
The major problem with oral contracts is proving the existence of the agreement.
Oral contracts require the courts to assess the credibility of the parties.
Are agreements where
people pool their money
to buy l.
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𝟏𝟎 𝐥𝐞𝐬𝐬𝐨𝐧𝐬 𝐥𝐞𝐚𝐫𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐛𝐨𝐨𝐤
"𝐁𝐞𝐥𝐢𝐞𝐯𝐞 𝐈𝐭 𝐭𝐨 𝐀𝐜𝐡𝐢𝐞𝐯𝐞 𝐈𝐭" by Brian Tracy and Christina Stein is a motivational book that focuses on the power of mindset and belief in achieving goals. Some key lessons from the book include:
1.The Power of Belief:
_______
The book emphasizes that your beliefs shape your actions and outcomes. Having a strong belief in your abilities and your goals can drive you towards success.
2.Positive Self-Talk:
_____
The authors stress the importance of using positive affirmations and self-talk to overcome self-doubt and build self-confidence.
3. Visualization:
____
The book encourages readers to visualize their goals and desired outcomes. Visualizing success can help in creating a clear mental image of what you want to achieve.
4. Setting Clear Goals:
___
Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is essential for focused progress and achievement.
5. Perseverance:
______
The book highlights the need to stay persistent in the face of challenges and setbacks. Believing in your goals and maintaining determination can help you push through difficulties.
6. Taking Action:
_____
Belief alone isn't enough; taking consistent action towards your goals is crucial. The book emphasizes the importance of continuous effort.
7. Surrounding Yourself with Positivity:
_____
Surrounding yourself with supportive and positive influences can help reinforce your beliefs and motivate you to achieve your goals.
8. Mindset Shift:
__
The book advocates for shifting from a fixed mindset to a growth mindset, where you believe that your abilities and intelligence can be developed through dedication and hard work.
9. Overcoming Fear:
______
The authors discuss strategies for overcoming fear and doubt, which often hinder progress. Cultivating courage and facing challenges head-on is essential.
10. Learning and Adaptation:
____
Embracing a mindset of learning from failures and adapting your approach can lead to continuous improvement and eventual success.
Thanks for reading.
@tongsa guy
Book:- https://amzn.to/3rbSM2F..
Business Law.pptx
Lecture Note
8 lessons from the book "Emotional Equations"
by Chip Conley:
1. "Joy = Love - Fear" - This equation suggests that joy is the result of feeling loved without fear. When we feel loved and secure, we are able to experience joy.
2. "Despair = Suffering - Meaning" - This equation suggests that despair arises when we are suffering but cannot find any meaning in our suffering. Finding purpose and meaning can help us move out of despair.
3. "Anxiety = Uncertainty x Powerlessness" - This equation suggests that anxiety arises when we feel uncertain about a situation and powerless to control it. Recognizing and addressing our feelings of powerlessness can help reduce anxiety.
4. "Disappointment = Expectations - Reality" - This equation suggests that disappointment arises when our expectations do not match up with reality. Adjusting our expectations or finding ways to change our reality can help reduce disappointment.
5. "Envy = Despair + Resignation" - This equation suggests that envy arises when we feel both despair and resignation about our own situation, while simultaneously coveting what others have. Practicing gratitude and finding ways to improve our own situation can help reduce envy.
6. "Authenticity = Self-Awareness x Courage" - This equation suggests that authenticity arises when we are both self-aware and courageous enough to express our true selves. Developing self-awareness and cultivating courage can help us live more authentically.
7. "Happiness = Wanting What You Have / Having What You Want" - This equation suggests that happiness arises when we either want what we already have or have what we want. Cultivating gratitude and finding ways to attain our desires can help increase happiness.
8. "Hope = Belief / Doubt" - This equation suggests that hope arises when our belief in a positive outcome outweighs our doubt. Focusing on positive outcomes and cultivating a hopeful mindset can help increase hope.
Thanks for reading
Keep following👉Martha Kay
115ExaminationExaminatio.docx
115
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Cumulative Essay Examination
You must type all of the answers to the examination questions.
Include your name, address, and student number on the top of
the first page of your exam answers. Use the exam number
50040700. Be certain to indicate the proper question number
before each of your answers.
When you’re ready to submit your answers to this exam, go to
http://www.pennfoster.edu, log in as a student, and go to your
My Courses page. Click the Take Exam button next to exam num-
ber 50040700, and attach your answers as a Word document.
Answer each of the following questions in a short composition
of one or two paragraphs. Each answer is worth 8 points.
EXAMINATION NUMBER
50040700
1. Discuss the advantages and disadvantages of alternative
dispute resolution compared to litigation. If you were enter-
ing into a business contract which would you prefer to see
in the contract? Why?
2. Shoplifting is a very serious problem for retail store owners,
with millions of dollars of merchandise stolen each year.
Obviously, some shoplifters put clothing and other items
under their clothes and then attempt to leave the store.
Video cameras in every bathroom and dressing room would
undoubtedly reduce successful shoplifting. Using rights
principles of ethics, what ethical issues are raised by
such action?
Cumulative Essay Examination116
3. Sally, 16 years old and unmarried, went to Hospital of the Good Shepherd with her
mother. Unknown to her mother, Sally was pregnant and in labor. She was in extreme
pain when she was admitted to the hospital and was told to just sign the medical
treatment authorization form so she could be treated. Sally delivered a healthy baby,
and both Sally and the baby were released the next day in good health. The hospital
attempted to collect their bill from Sally’s insurance carrier but it only paid a portion of
the costs. The hospital then sued Sally for the balance. Is Sally liable for the balance of
the medical bill? Is Sally’s mother responsible?
4. In many other countries, contracts aren’t as strictly construed and don’t contain all of
the terms of an agreement as they do in the United States. Often, business people
from other countries complain that U.S. contracts are viewed too formally. Generally,
contract law in the U.S. requires all parties to a contract to continue to perform the
contract even when conditions have changed and make it more difficult for one party
to continue to perform. Do you believe contracts should be more flexible to allow for
changes in the terms of the agreement when conditions change? Or, do you believe the
terms of a contract should be viewed as an absolute irrespective of any change in
conditions? Explain your answer.
5. John is in the process of buying a new house. He looks on the Internet for some
furnishings he believes he will need for the house. He finds exactly what he is looking
for on the shopforit.com website. The webs.
Basic Contract Law: For Small Business Owners and Independent Contractors
This presentation was given to the Social Media Club of Hawaii's pros on November 14th, 2012. It discusses the basics of contract law and is intended for an audience of small business owners and independent contractor consultants. As this is general legal information please do not rely upon it for specific legal advice, and seek out an attorney in a relevant jurisdiction for legal help and services.
1. Discuss the advantages and disadvantages of alternative dispute.docx
1. Discuss the advantages and disadvantages of alternative dispute resolution compared to litigation. If you were entering into a business contract which would you prefer to see in the contract? Why?
2. Shoplifting is a very serious problem for retail store owners, with millions of dollars of merchandise stolen each year. Obviously, some shoplifters put clothing and other items under their clothes and then attempt to leave the store. Video cameras in every bathroom and dressing room would undoubtedly reduce successful shoplifting. Using rights principles of ethics, what ethical issues are raised by such action?
3. Sally, 16 years old and unmarried, went to Hospital of the Good Shepherd with her mother. Unknown to her mother, Sally was pregnant and in labor. She was in extreme pain when she was admitted to the hospital and was told to just sign the medical treatment authorization form so she could be treated. Sally delivered a healthy baby, and both Sally and the baby were released the next day in good health. The hospital attempted to collect their bill from Sally’s insurance carrier but it only paid a portion of the costs. The hospital then sued Sally for the balance. Is Sally liable for the balance of the medical bill? Is Sally’s mother responsible?
4. In many other countries, contracts aren’t as strictly construed and don’t contain all of the terms of an agreement as they do in the United States. Often, business people from other countries complain that U.S. contracts are viewed too formally. Generally, contract law in the U.S. requires all parties to a contract to continue to perform the contract even when conditions have changed and make it more difficult for one party to continue to perform. Do you believe contracts should be more flexible to allow for changes in the terms of the agreement when conditions change? Or, do you believe the terms of a contract should be viewed as an absolute irrespective of any change in conditions? Explain your answer. PF Blue + Charcoal PF Blue + White
5. John is in the process of buying a new house. He looks on the Internet for some furnishings he believes he will need for the house. He finds exactly what he is looking for on the shopforit.com website. The website even allows him to finance his purchase; all he has to do is to complete a short application and accept the terms of the financing by clicking on the “I Accept” button. John is so excited about finding what he is looking for that he quickly fills out the application and, without reading the financing terms, he clicks on the “I Accept” button. Two weeks later, John is in a store looking for other items for his home and he finds exactly the same thing that he had previously purchased but for less money and with much better financing terms. John e-mails shopforit.com and tells them he wants to cancel his purchase. Can John cancel his purchase with shopforit.com? Explain.
6. Penny, a senior vice president at Wholesale Foods LLC, sends a co ...
62CHAPTER 4Offer, Acceptance, and ConsiderationCHAP.docx
62
CHAPTER 4:
Offer, Acceptance, and Consideration
CHAPTER 5:
Contracts: Capacity, Genuine Assent, the Statute of Frauds, and Illegality
CHAPTER 6:
Third Parties, Performance and Discharge of Contracts, and Remedies
Unit II
Contracts
rog80328_04_c04_062-088.indd 62 9/20/16 11:14 AM
© 2016 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.
63
C
ontract law is of great importance in business and in everyday life. Common trans-
actions such as buying a pack of gum at the corner grocery store, purchasing a ticket
at a movie theater, or ordering a meal at a restaurant involve making contracts, but
so does a complex patent licensing agreement between two multinational corporations. In
this unit, we will explore the nature of contracts, the requirements for their valid formation,
and the consequences for their breach.
A contract is a legally enforceable agreement between two or more people. Although all
contracts contain enforceable promises, not all promises result in contracts. Consider the
following situation:
Henry invites Ericka to dinner, and Ericka accepts. Henry looks forward to the date and can
think of little else all day long. A half hour before they were to meet, Ericka calls Henry and
tells him that she will not be able to keep their date because Ron has invited her to go danc-
ing and she has accepted. Henry is upset, hurt, and angry and would like to sue Ericka for
breach of contract, since she has clearly broken a promise made to him earlier that day and
caused him distress. Will he succeed?
Ericka may not be a very nice person, and she may have had a moral obligation to attend
the dinner date. Nevertheless, she had no legal obligation to do so. The agreement that she
breached was not a contract, but merely a social obligation that the courts will not enforce.
In order for there to be a valid contract, certain essential elements must exist. These include
an offer to enter into a contract, acceptance of the offer by the other party, an exchange of
consideration between the parties, and a legal purpose for the contract. In addition, both
parties must have the capacity to enter into a contract. We will explore these elements in
depth in this unit. We will also discuss certain types of contracts that must be in writing to
be enforceable and situations in which a contract is unenforceable due to a lack of genuine
assent, such as in cases of fraud or mutual mistake of fact.
We enter into contracts every day. On the way to work, you pick up a newspaper at a news-
stand. You also stop for a cup of coffee at a cafe. While there, you use your phone to browse
the Web and purchase tickets to a concert online. Finally, you arrive at the bus stop and
pay your fare as you enter the bus that will take you to work or to class. In each of these
examples, a contract was made. In each case, there was a valid offer and acceptance (your
ordering the drink and the cafe’s providing.
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Code of Ethics: This is a synopsis of some of the most important ethical
considerations you need to be aware of as a professional in the real estate
industry.
Terminology:
Agency: The fiduciary relationship created between a principal and an agent whereby the agent
can act on behalf of the principle for certain transactions. Agency is usually created when the
principal signs a listing agreement to list their property for sale or a management contract to rent
a property for instance.
Agent: The broker or sales associate acting on behalf of the principal (see Agency)
Client: The person with whom the broker or sales associate has a legal contract to represent.
Customer: Is not contractually bound to the industry professional
Principal: Person who hires an agent to act on his or behalf.
Code of Ethics:
#1: The agent has a responsibility to promote the interests of their client(s) and treat all involved
in any real estate transaction in an honest and fair manner. They must disclose if they are a
dual agent (representing both buyer and seller in a transaction) or a designated agent
(represent either the buyer or seller depending on state law), or they are a limited representative
(will provide only certain duties in the transaction per state law).
#2: Agents must openly acknowledge to clients any personal interest they might have in any
transaction prior to showing a property; they must acknowledge any personal relationships
involved. Ex: Agent says, “I want to disclose to you before we look at it, that this property
belongs to is my brother and my sister in-law is his agent.”
#3: The Agent will not allow anyone that is not pre-authorized by the owner, to access the
property of the client.
#4: Never overstate benefits or attributes of a property or opportun.
a able aboutaccomplishaccomplishmentachieveachieving.docx
a
able
about
accomplish
accomplishment
achieve
achieving
action
affect
affects
against
all
always
and
any
are
around
as
backs
be
because
become
becoming
being
believe
big
bring
broke
by
can
challenges
chance
change
choice
come
consistent
could
day
deal
desperate
desperation.
determination
did
didn’t
disciplining
do
does
doesn’t
don’t
dreams
each
easy
end
enough
even
every
everyone
everything
fail
failing
failure
far
feel
financial
first
fitness
from
fulfilled
full
get
go
goal
goals
had
have
help
how
hundreds
if
importantly
in
inspiration.
inspire
into
is
it’s
just
kind
knees
learn
Learning
life
lives
living
lucky
many
massive
matter
may
miss
more
most
motivated
No
not
Now
of
one
or
other
others
our
over
own
people
people’s
possibility
possibly
poverty
power
problem
pursue
putting
quitting
realize
reason
regret
regrets
said
same
second
see
setbacks
should
sick
small
so
someone
something
spring
start
stories
success
successful
take
taking
than
that
The
their
themselves
there
these
they
things
think
thought
to
too
towards
trouble
trying
two
up
wall
wanted
was
we
Well
went
what
when
Whether
who
Why
will
with
with
won’t
words
you
your
yourself
Code of Ethics: This is a synopsis of some of the most important ethical
considerations you need to be aware of as a professional in the real estate
industry.
Terminology:
Agency: The fiduciary relationship created between a principal and an agent whereby the agent
can act on behalf of the principle for certain transactions. Agency is usually created when the
principal signs a listing agreement to list their property for sale or a management contract to rent
a property for instance.
Agent: The broker or sales associate acting on behalf of the principal (see Agency)
Client: The person with whom the broker or sales associate has a legal contract to represent.
Customer: Is not contractually bound to the industry professional
Principal: Person who hires an agent to act on his or behalf.
Code of Ethics:
#1: The agent has a responsibility to promote the interests of their client(s) and treat all involved
in any real estate transaction in an honest and fair manner. They must disclose if they are a
dual agent (representing both buyer and seller in a transaction) or a designated agent
(represent either the buyer or seller depending on state law), or they are a limited representative
(will provide only certain duties in the transaction per state law).
#2: Agents must openly acknowledge to clients any personal interest they might have in any
transaction prior to showing a property; they must acknowledge any personal relationships
involved. Ex: Agent says, “I want to disclose to you before we look at it, that this property
belongs to is my brother and my sister in-law is his agent.”
#3: The Agent will not allow anyone that is not pre-authorized by the owner, to access the
property of the client.
#4: Never overstate benefits or attributes of a property or opportun ...
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