Contract Law BasicsBy

Dr. Lawrence J. Gist II

A Practical Approach to Contract

Review and Negotiations
Communication & Common
Sense

The stuff lawyers make confusing

 Real Life Signs That Make You Think
“What Did You Mean to Say” ?
• Front-Page Headlines: "Miners Refuse to Work after Death"
• Pizza Hut: Seeing Eye Dogs Allowed
• LA Airport: Please Do Not Put Foreign Material in the Urinal.
• Norris Center in Palos Verdes: Hands Free Urinal
• Salvation Army Retirement Center in Redondo Beach: Sign-
Up for a Massage with BJ
• Sears Iron Warning: Never iron clothes on the body.
• Batman Costume Warning: Cape does not enable user to fly.
• Planter’s Honey Roasted Peanuts Warning: This product
contains nuts.
• Folgers Coffee Warning: Will be hot after heating.
 Real Life Signs That Make You Think
“What Did You Mean to Say” ?
• Swanson Frozen TV Dinner Instructions: This product
must be cooked before eating.
• Kroger Baby Lotion Warning: Keep away from
children
• Pantene Hairspray Warning: Intentional misuse by
deliberately concentrating and inhaling the contents
can be harmful or fatal.
• Nytol Sleep Aid Warning : May cause drowsiness
• K-Mart Brand Christmas Lights Warning: For indoor
or outdoor use only.
• Rite-Aid Ear Plugs Warning: These ear plugs are
nontoxic, but may interfere with breathing if caught in
windpipe.
REVIEW OF CONTRACT LAW
•ELEMENTS OF A VALID CONTRACT
–OFFER & ACCEPTANCE=AGREEMENT
–CONSIDERATION
–COMPETENT PARTIES (CONTRACT IS
VOIDABLE)
–MUTUALITY OF ASSENT (NO DURESS,
UNDUE INFLUENCE, MISREPRESENTATION,
FRAUD, MISTAKE)
–LEGALITY
REVIEW OF CONTRACT LAW
•OFFER
–COMMUNICATED
–DEFINITENESS
–TERMINATION
•LAPSE OF TIME
•REJECTION
•REVOCATION
•COUNTEROFFER
•DESTRUCTION OF SUBJECT MATTER
•DEATH OR DISABILITY
–OPTION CONTRACT
REVIEW OF CONTRACT LAW
•ACCEPTANCE
–MIRROR IMAGE
–WHO CAN ACCEPT?
 REVIEW OF CONTRACT LAW

•OTHER CONTRACT TERMS

–QUASI CONTRACTS (Implied in law)
–PROMISSORY ESTOPPEL
REVIEW OF CONTRACT LAW
•TERMINATION
–SUBSTANTIAL OR SATISFACTORY
PERFORMANCE
–BREACH OF CONTRACT
•IMPOSSIBILITY/IMPRACTICABILITY
–DUTY TO MITIGATE DAMAGES