1. Find and read the following cases
What theory does the court use to evaluate the contract ?
Some scholars argue that common law has long used objective testing to recognize a contract. Other scholars and writers claim that the widespread use of objective contract theory in court was a much more recent phenomenon, perhaps developed in the late 19th century.
On June 16, 2003, Welles filed a complaint against the Academy
seeking termination and a court statement regarding the parties'
rights and obligations under the receipt. On July 7, 2003, the
defendant filed its response and counterclaim against the
plaintiff, alleging breach of contract, declaratory relief, and
breach of equitable easement. ) On July 31, the plaintiff filed a
motion for summary judgment, which the Court denied on September
24, 2003. The plaintiff filed the instant motion for summary
judgment on his first amended complaint.
What is the objective theory of contracts?
Objective theory of the contract. A principle in US law that the existence of a contract is determined by the legal significance of the external acts of a party to an alleged agreement, rather than by the actual intention of the parties.
A contract will be executed in accordance with its terms. Here, the Court must consider the terms of the contract and the relevant evidence of probation. The mistake of one party regarding the subjective intention of the other party is not, in itself, a reason for rescission.
When will a court void a contract?
Under contract law, there are circumstances under which a
settlement agreement may be ineffective and may be set aside. These
include:
where one of the parties lacks capacity (for example, a child or a
person with mental disorders)
where an error has been made on a fundamental matter or that makes
it impossible to comply with the settlement agreement
where there has been a fraud or misrepresentation of a material
fact in certain circumstances
where there has been "sharp practice"
where there have been certain forms of coercion and undue
influence
Should an ad be treated as an offer rather than an invitation to bid? Why or why not?
Ads are often an invitation to deal because they lack the important information that would make it an offer. If descriptive words are used to link someone and there is confidence in all applicable terms, the ad is likely to be considered an offer rather than an invitation to deal.
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