Business Law (Midterm) Part 1 – Flashcards
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Plaintiff
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Person bringing the case to court
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Purpose of Law
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A set of enforceable rules governing relationships among individuals
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Schools of Jurisprudence
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Natural, Positive, Historical, Legal Realism
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Natural Law
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Law determined by nature, rights we have are inherent within us
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Positive Law
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Written law, doesn't matter whether good or bad, ppl have rights ONLY because law says so
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Historical Law
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Looks to past to discover what current law should be, doesn't account for changes in society or technology
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Legal Realism
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Law considers needs of society, law is shaped by social forces and needs
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Three Branches of Law
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Executive, Legislative, Judiciary
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2 Types of Court
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Court at Law and Court at Equity
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Court at Law
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go here first, deals with land, items of value, money
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Court at Equity
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Specific performance, rescission, injunction
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Stare Decisis
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Judges are required to follow precedent established within a jurisdiction
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Jurisdiction
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The power of a court to hear a controversy (which state)
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In Rem
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must involve property, property must be located w/in state
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Personal Specific Jurisdiction
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State where the defendants actions occurred
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Personal General Jurisdiction
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defendant must have so continuous and systematic contact w/ state it is as if they live there, state of incorporation, principle place of business, if contract says a specific state has jurisdiction
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3 Types of Subject Matter Jurisdiction
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Exclusive, Federal Question, Diversity
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Exclusive Jurisdiction
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Federal crimes, bankruptcy, patent/copywrite, admiralty, suits against US
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Federal Question
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Suit involves a federal law, or naw (if yes, then it is exclusive jurisdiction)
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Diversity Jurisdiction
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Suit involves people from 2 different states AND case is more than $75,000
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Venue
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The physical location of where the court is within a jurisdiction (which county)
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Venue is proper for people where:
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cause of action took place, transaction giving rise to cause of action took place, defendant can be properly served
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Venue is proper for corporations where:
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their registered office is, principle place of business is, where they regularly conduct business, where transaction giving rise to cause of action took place
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Standing (definition)
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The ability of a person to sue
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Standing (requirements)
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plaintiff must have legal stake/interest, must have suffered harm/threat of harm, case must be ripe
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Contract (definition)
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Any voluntary, legally binding agreement between 2 or more parties to do or not do something
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4 Required elements of a contract
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Agreement (offer and acceptance), consideration, competent parties (have to be sane), legal purpose (has to be legal)
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Consideration (definition)
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Something of value exchanged by each party to bind the agreement
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Value (of consideration)
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Equals benefit recieved, not always equal to monetary value
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Can gifts be used as consideration?
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No - consideration goes both ways, gift only goes one way
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Forbearance
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The giving up of a legal right, can be used as consideration
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Colorable Claim (definition)
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A claim strong enough to have a reasonable chance of being valid (and winning?) in court
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Enticement Rule
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enticing performance by the promise of a give-away can constitute consideration
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Past consideration
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Does NOT support a contract, (promises based on past things don't count) but there are exceptions
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Moral Obligation
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Moral obligation is sufficient consideration to support a contract provided the promisor has some pre-existing duty
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Life saving measures
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when the promissor offers to compensate someone for past consideration concerning life saving measures, then this is sufficient consideration to enforce
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Improving Property
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When the promissor does/cares for/improves something and promises to pay for it, this is sufficient consideration to enforce
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2 Types of Quasi Contract
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Promissory Estoppel and Unjust Enrichment
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4 Parts of Promissory Estoppel
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Promise made, promissor reasonably expects the promise, induced action/forbearance, results in detriment
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3 Parts of Unjust Enrichment
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Benefit conferred, appreciation/knowledge by defendant of benefit, acceptance/retention of benefit by defendant under circumstances making it inequitable for defendant to retain benefit
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Mutuality of Obligation
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Unless all parties in a contract are bound to perform, the contract is not valid/binding
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Pre-existing Duty Doctrine
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After beginning performance under the terms of an already existing contract, the party cannot stop performance and promise to continue for more money
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Unforeseen Circumstance
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If an unforeseen circumstance occurs, then an agreement for an additional 1-sided consideration will be upheld
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Seriously intended
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If a persons words, judged by a reasonable person, manifest an intention to agree, then the agreement can be established
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Definite Requirement
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Offers must be definite (clear wording, listing things like price, subject matter, quantity, quality...)
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Invitation to make an offer
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general wording, leaves things open to negotiation
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Offers must be communicated
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Offeree must know that an offer has been made
