BLAW 221 Unit 4 Study Guide FA18 - Chapters 13-16

BLAW 221 Unit 4 Study Guide FA18 – Chapters 13-16

Understanding Contractual Obligations and Performance

Contracts are the bedrock of commercial and personal transactions, dictating the rights and duties of parties. In BLAW 221 Unit 4, chapters 13 through 16 explore the intricate nuances of contract formation, enforceability, performance, and breach. A thorough comprehension of these legal principles is crucial for students and professionals alike.

Chapter 13: Consideration in Contracts

One of the fundamental aspects of contract law is consideration. This chapter delves into the doctrine of consideration, which mandates that for a contract to be legally binding, there must be something of value exchanged between parties. The absence of consideration renders an agreement unenforceable.

Key takeaways include:

• Legal sufficiency and adequacy: Courts typically do not assess the fairness of consideration, only its presence.

• Preexisting duty rule: A party cannot claim additional compensation for performing an obligation they are already bound to fulfill.

• Promissory estoppel: In instances where a party relies on a promise to their detriment, courts may enforce the promise despite the lack of consideration.

Students accessing the Chuka University Student Portal can review past exam questions and reference cases on consideration for a more practical understanding.

Chapter 14: Contractual Capacity and Legality

A contract’s enforceability heavily depends on the capacity of the parties involved. This chapter highlights the legal competency required for contract formation, particularly focusing on minors, intoxicated individuals, and those with mental incapacities.

• Minors: Contracts entered into by minors are typically voidable at their discretion, with exceptions for necessities such as food, clothing, and medical care.

• Mental incapacity and intoxication: Courts assess whether a party could understand the nature and consequences of the agreement at the time of contracting.

• Legality: A contract must adhere to public policy and statutory requirements. Agreements involving illegal activities, such as gambling in jurisdictions where it is prohibited, are deemed void.

Students utilizing the Chuka Repository can find legal case studies and scholarly analyses illustrating real-world applications of these principles.

Chapter 15: Genuine Assent and Mistakes in Contracts

For a contract to be valid, mutual assent must be genuine. This chapter explores scenarios where assent may be compromised, leading to contract rescission or reformation.

• Fraud and misrepresentation: A contract procured through deceit or false statements is voidable by the aggrieved party.

• Duress and undue influence: Coercion or improper persuasion can invalidate a contract, particularly in fiduciary relationships.

• Mistakes: Contracts may be voidable if mutual mistakes of fact are present. However, unilateral mistakes generally do not afford relief unless the error was known or induced by the other party.

By referencing the BLAW 221 PDF from Chuka University, students can analyze historical cases that exemplify these contract law tenets.

Chapter 16: Discharge and Remedies in Contract Law

The final chapter in this unit covers contract discharge mechanisms and available remedies when breaches occur.

• Performance and discharge: Contracts can be terminated through complete performance, substantial performance, or agreement between parties.

• Breach of contract: A material breach allows the non-breaching party to seek damages or cancel the contract altogether.

• Remedies: Legal remedies include compensatory damages, consequential damages, and specific performance when monetary compensation is inadequate.

Legal precedents available through the Chuka Repository provide invaluable insights into how courts adjudicate contract breaches and award remedies.

Conclusion

A solid understanding of BLAW 221 Unit 4 is vital for mastering contract law. From consideration to enforceability, and from genuine assent to breach remedies, these chapters provide a comprehensive foundation. Students can deepen their grasp of these principles through resources available in the Chuka University Student Portal, alongside supplementary readings in the BLAW 221 PDF. Mastery of these topics ensures a robust legal acumen, indispensable for academic success and professional application.

Below are sample Questions and Answers:

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the
question.
1) A franchise should be thought of as
A) a type of business entity. B) a method of conducting business.
C) a federally regulated business entity. D) a contractually based business entity.
2) Stanton and Francesca have started a general partnership. Stanton has contributed 95 percent of the start-up
capital and has the business experience and contacts, while Francesca's primary contribution is the labor
necessary to operate the business. Management decisions are jointly made. At the end of the year, the
business has shown a $100,000 profit. Stanton and Francesca have no formal written partnership agreement.
A) The RUPA mandates that each get $50,000.
B) The RUPA mandates that Francesca be paid a fair amount for her labor contribution and the
remaining profits be split equally between Stanton and Francesca.
C) The RUPA mandates that Francesca be paid a fair amount for her labor contribution and the
remaining profits be split with 95 percent going to Stanton and 5 percent going to Francesca.
D) Stanton is entitled to $95,000, and Francesca gets $5,000.
3) The first LLP legislation was enacted in
A) Iowa. B) Florida.
C) Texas. D) New York.
4) The ability to distribute earnings without incurring double-level taxation is an advantage of a
A) pass-through entity. B) member-managed LLC.
C) manager-managed LLC. D) corporate tax structure.
5) Formation of an LLC requires the filing of
A) articles of organization. B) a certificate of formation.
C) a record of business creation. D) a statement of qualification.
6) Wayne is the president and CEO of a corporation. He owns 25 percent of the company's total stock and has
been selling large chunks of his holdings over the past three months. If the SEC investigates him for shortswing profits, it would do so under
A) Regulation D of the 1933 Act. B) Rule 10(b)(5) of the 1934 Act.
C) Section 16 of the 1934 Act. D) the Private Securities Litigation Reform Act of 1995.
7) The most commonly used debt instrument is
A) a debenture. B) a bond.
C) a promissory note. D) common stock.
8) Mariel owns a toy store, which is a sole proprietorship. She wants to retire. What is the best way for Mariel
to transfer the ownership of her business?
A) Mariel can either sell the assets to another party or give it to her heirs.
B) Because it is a sole proprietorship, Mariel must close the business when she retires.
C) Mariel can give the business to her heirs in her will or trust.
D) Mariel can sell the assets of the business to another party.
9) LLPs are formed with the filing of with the proper public official.
A) articles of organization B) a statement of qualification
C) a certificate of formation: LLP D) a record of business creation