Maricopa Community Colleges  LAS204   20082-99999 

Official Course Description: MCCCD Approval:  6-23-09

LAS204  2009 Fall - 9999

LEC

3.0 Credit(s)

3.0 Period(s)

Contract Law

Examination of contracts and their regulation by the Uniform Commercial Code. Review and drafting of basic agreements.

Prerequisites or Corequisites: LAS109 and (BPC110 or permission of Department Chair or program Director).

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MCCCD Official Course Competencies:

 

LAS204  2009 Fall - 9999

Contract Law

 

1.         Evaluate and assess contracts by type, method of formation, explicitness, formality, extent of completion, and enforceability. (I)

2.         Determine and apply the analytical steps used to determine whether a valid, enforceable contract has been formed. (II)

3.         Evaluate the elements of various contracts and assess the legality of the subject matter and capacity of parties. (II)

4.         Analyze the effectiveness of different attempts to terminate an offer by revocation, rejection, or operation of law. (II, III)

5.         Analyze the requirements for making an offer and accepting an offer to form a binding contract. (II, III)

6.         Compare and contrast a contract formed under general common law with a contract formed under the Uniform Commercial Code. (III, VII)

7.         Determine the intent and assess the voluntariness of parties to a contract. (III, IV)

8.         Evaluate performance of contractual duties to determine whether a breach of contract has occurred, the type of breach, if any, and available remedies. (IV-XI)

9.         Apply the rules for construing the terms of a contract. (V)

10.       Determine the applicability of the Uniform Commercial Code including provisions detailing contracts among merchants. (VI, VII)

11.       Evaluate the significance and applicability of perfecting a security interest. (VIII)

12.       Describe the contract rights of third parties, including creditor-beneficiaries, donee-beneficiaries, and assignees. (IX)

13.       Prepare and review contracts incorporating the essential clauses necessary to execute the contract. (XII)

 

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MCCCD Official Course Outline:

 

LAS204  2009 Fall - 9999

Contract Law

 

I.          Formation

            A.        Classification of contracts

                        1.         Bilateral or unilateral

                        2.         Express or implied

                        3.         Formal or informal

                        4.         Executory or executed

                        5.         Valid, void, or voidable

            B.        Elements of a contract

                        1.         Offer

                        2.         Contractual intent

                        3.         Communication to offeree

                        4.         Certainty of material terms

                        5.         Termination of the offer

                                    a.         Revocation

                                    b.         Rejection

                                    c.         Operation of law

            C.        Acceptance

1.         Varying the terms of the offer

2.         Method of acceptance

3.         Mirror Image Rule

D.        Consideration

            1.         Types

                        a.         Legal benefit

                        b.         Legal detriment

            2.         Methods of creation

            3.         Absence of consideration

                        a.         Past consideration

                        b.         Moral obligation

                        c.         Gratuitous promises

                        d.         Illusory contracts

                        e.         Pre-existing duty

4.         Special situations

            a.         Promissory estoppel

            b.         Accord and satisfaction

            c.         Charitable subscriptions

            d.         Debtor's promises

            e.         Guarantees

            f.          Formal contracts and negotiable instruments

II.        Legality of Subject Matter

            A.        Contractual capacity

                        1.         Age

                        2.         Mental competence

                        3.         Alcohol and drug impairment

            B.        Illegality         

                        1.         Violate public policy

                        2.         Violate statute

III.       Intent and Voluntariness

            A.        Fraud

            B.        Misrepresentation

            C.        Duress

            D.        Mistake

                        1.         Mutual

                        2.         Unilateral

IV.       Statute of Frauds

A.        The Statute of Frauds – writing requirements

            1.         Contracts for an interest in real estate

            2.         Contracts in consideration of marriage

            3.         Contracts not to be performed within one year

            4.         Guarantees

            5.         Contracts for the sale of goods

            6.         Executor's promise to pay decedent's debts

B.        Partial Performance

C.        Conditions

            1.         Types of conditions

                        a.         Precedent

                        b.         Subsequent

                        c.         Concurrent

            2.         Creation of conditions

                        a.         Express

                        b.         Implied-in-fact

                        c.         Implied-in-law

V.        Rules of Construction

            A.        Four Corners Doctrine

            B.        The Parol Evidence Rule

            C.        Business Custom and Trade Usage

VI.       The Uniform Commercial Code (UCC)

            A.        Article I: General Provisions

                        1.         Applicability of UCC and common law

                        2.         Variance of UCC provisions by agreement

                        3.         Statutory intent and construction

                        4.         Implied obligations

                        5.         Good faith

                        6.         Commercial reasonableness

VII.     Article 2 Sales

                        A.        Custom and usage

                        B.        Applicability of UCC

                        C.        Sales and leases

                        D.        Goods

                        E.         Mixed transactions

1.         Contractual provisions

F.         Warranties

G.        Risk of loss

H.        Remedies

            1.         Seller's

            2.         Buyer's

VIII.                Article IX: Secured Transactions

            A.        Attachment of security interest

            B.        Perfection of security interest

            C.        Priorities among secured parties

IX.       Third Party Contract Rights

            A.        Third party beneficiaries

            1.         Creditor-beneficiaries

            2.         Donee-beneficiaries

            B.        Assignment of contracts

            1.         Assignment of benefits

            2.         Delegation of duties

X.                    Discharge of Obligations

                        A.        Excuse of conditions

                        B.        Performance of obligations

            C.        Breach of contract

            1.         Material

            2.         Anticipatory

                        3.         Statute of limitations

            D.        Mutual agreement

            E.         Impossibility

            F.         Supervening illegality

            G.        Death of the parties

            H.        Destruction of subject matter

                        I.          Commercial impracticability and frustration of purpose

XI.       Remedies

            A.        Legal remedies

                        1.         Compensatory damages

                        2.         Punitive damages

                        3.         Consequential damages

                        4.         Liquidated damages

                        5.         Nominal damages

            B.        Equitable remedies

                        1.         Injunction

                        2.         Specific performance

                        3.         Rescission and restitution

                        4.         Reformation

                        5.         Quasi contract: Quantum meruit

XII.     Checklist of Clauses in Drafting Contracts

            A.        Essential terms

            B.        Special provisions

                        1.         Waivers

                        2.         Covenants not to compete

                        3.         Severability

                        4.         Time is of the essence

                        5.         Remedies

                        6.         Jurisdiction

                        7.         Arbitration

 

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