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DISSERTATION ON CONTRACTSUNDER CALIFORNIA LAW
An Academic presentation by Dr. Nancy Agnes, Head, Technical Operations, Tutors India Group www.tutorsindia.comEmail: [email protected]
Description of a Contract under California Law
Contract Compliance under California Law
Contract Defences: California's Contracting Ability
Enforcement of Contract under California Law
Defences of Contract under California Law: Coercion; Duress, Undue
Influence, Misrepresentation
Conclusion
OUTLINE
Today's Discussion
One of the first factors to consider before entering into abusiness arrangement is whether the commitment or agreementin question would be considered an enforceable contract underthe law.
Although most contracts contain promises to do anything (ornot do something), not all promises are contracts.
What criteria does the California law use to decide whichcontracts are enforceable and which are not?
introduction
When deciding if a company or employment arrangementshould be followed, courts consider a variety of factors.
To begin, the court must decide whether or not an arrangementis a contract.
To be considered a legal contract, an agreement must meetthe following requirements
Descriptionof aContractunderCaliforniaLaw
Contd...
One party must make a bid, which must be accepted by the other.
A bargained-for exchange of promises is necessary, which means that something ofvalue must be offered in exchange for a promise.
A contract's terms must be reasonably precise for a court to enforce them.
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Contd...
If a court finds that a contract exists, it must then consider if itcan be implemented.
A court can refuse to enforce a contract for a variety ofreasons. These are known as contract defenses.
Contract defenses are meant to shield people from unfairnessduring the negotiating process or in the contract's material.
If a contract has valid protection, it may be voidable, whichmeans that the person who was the object of the unfairnessmay be able to cancel or terminate the contract.
ContractComplianceunderCaliforniaLaw
Contd...
In certain cases, the unfairness is so severe that the contract is declared void, i.e.,the court declares that no contract was ever made.
What are some of the possible reasons for a court's refusal to enforce a contract?
Contd...
An individual must have the legal right to form a contract inorder to be bound by it.
In California, this legal skill is known as the capacity tocontract.
An individual who is unable to understand what he or she isdoing when signing a contract due to age or mental illnesscan lack contracting capability.
An individual under legal guardianship because of a mentaldisorder, for example, has no ability to contract.
ContractDefences:California'sContractingAbility
Contd...
Any contract signed by that person is null and void. In other circumstances, aperson's ability to contract may not be entirely lost.
The contract will then be voidable at the request of the party alleging incapacity, ifthe incapacity could be proven.
Contd...
To decide if you, the contract writer, are capable of creatingan enforceable contract, the court will weigh a variety offactors.
A minor, for example, cannot normally form an enforceablecontract.
A minor's contract may be terminated by either the minor orhis or her guardian.
An individual has a fair time after reaching the age of majority(18 in most states) to cancel a contract entered into as aminor.
Enforcementof ContractunderCaliforniaLaw
If he or she does not void the contract within a reasonable time, it will be deemedratified, rendering it binding and enforceable.
Can a contract be enforced if it is formed (or signed) when an individual is inebriatedor under the influence of drugs? People who say they signed a contract whileinebriated normally don't get much sympathy from the courts.
A court would usually cause a contract to be voided only if the other party to thecontract was aware of the intoxication and took advantage of the intoxicated person,or if the person was involuntarily intoxicated (e.g. someone spiked the punch).
Contd...
Coercion, intimidation, false claims, or inappropriatepersuasion by one of the contracting parties willresult in the contract being voided.
These circumstances are resolved by the defencesof duress, misrepresentation, and excessiveinfluence
A party must prove that assent or consent to thecontract was caused by a severe threat of unlawfulor unjust action in order to invoke the protection ofsigning under duress.
Defences ofContract underCalifornia Law:Coercion; Duress,Undue Influence,Misrepresentation
He or she must also explain that they have no other choice but to sign thecontract. Duress is exemplified by blackmail.
Contd...
If you signed or formed a contract in California that wasbroken, whether implicit, oral or written, contact a breach ofcontract attorney at a law firm today to arrange aconsultation.
They can help you understand what aspects of the contractare enforceable, how to assert a breach of contract, andwhen you can sue for breach of contract damages.
Conclusion
