Lecture Notes

West Legal Studies website in support of textbook

Session 1 - 1/12

Powerpoint for Chapter 1

Powerpoint for Chapter 3

Powerpoint for Chapter 4

Constitutional basis for law - The Commerce clause gives Congress extremely broad powers and is the basis for a large number of laws that exist today.  Pay special attention to the commerce clause, the first five amendments and the fourteenth amendment.

Session 2 - 1/19

Powerpoint for Chapter 2

Powerpoint for Chapter 5

Powerpoint for Chapter 6

The elements of a tort are: Duty, Breach, Proximate Cause and Damage. Everyone owes everyone else a general duty not to do anything that would proximately cause foreseeable harm (the nail box in the truck).  Whether that duty gets breached becomes a matter of foreseeability.  At some point, foreseeability gets too remote. Torts may be intentional or unintentional.  The elements of a tort are: Duty, Breach, Proximate Cause and Damage. Contributory negligence is an absolute defense to liability, whereas, comparative negligence or comparative fault simply apportions liability between the parties (i.e., the total damages payable are reduced by the percentage of fault of the plaintiff).  Under some statutory schemes, where a plaintiff's fault is equal to or greater than a defendant (50%-50%), the defendant will not pay damages.  Under other schemes, a plaintiff's fault must be greater than the defendants', which means that if the defendant is 50% at fault, he/she will pay half the damages.  Agency principles apply in torts and a principal is liable for the negligence of his agent in the pursuit of the object of the agency. There is no need to prove negligence when there is negligence per se may attach when a statute is violated; Res ipsa loquitur; or strict negligence. 

Powerpoint for Chapter 39


Session 3 - 1/26

Powerpoint for Chapter 7

Powerpoint for Chapter 8

Powerpoint for Chapter 9

Professionals and those who hold themselves out as professionals are held to the appropriate standard of care.


Session 4 - 2/2

Powerpoint for Chapter 10

Basics of contracts, including Quasi Contract, Implied in Law Contract, Implied in Fact Contract, Bilateral Contract, Bilateral Contract, Unilateral Contract, Constructive Contract, Executory Contract, Express Contract, etc. , and contract formation; offer ; acceptance ; meeting of the minds ; consideration - must be more than a "mere peppercorn"; competent parties - most states have statutes concerning the enforceability of contracts with "infants" (generally, under 14).  Not enforceable except for "necessaries."; privity ; estoppel ; failure of consideration .

Powerpoint for Chapter 11

The proposal is the same as an offer in contract formation.

Powerpoint for Chapter 12

Powerpoint for Chapter 13

Powerpoint for Chapter 14


Session 5 - 2/9

Powerpoint for Chapter 15

Statute of Frauds - General law is where parties have proceeded to performance, contract is generally enforceable except where other statutory formalities are required, such as with real property if a Notary Public acknowledgment is necessary.

Powerpoint for Chapter 16

Third Party Beneficiary ; Contracts that are ambiguous will be construed against the drafter based on the intent of the parties and the contract taken as a whole.

Powerpoint for Chapter 17

Performance, including Part Performance, Substantial Performance, Specific Performance, etc. , termination; breach, including Breach of Contract, Material Breach, Anticipatory Breach, etc. ; repudiation ; contract interpretation and construction. Impossibility of performance generally excuses performance unless the impossibility was caused by the party seeking to be excused.

Powerpoint for Chapter 18

Damages are available for breach of contract, including compensatory damages and incidental damages that would have been within the anticipation of the parties to flow from such a breach when the contract was formed and, if the contract so provides, liquidated damages.  Other remedies available include restitution and specific performance .


Session 6 - 2/16

Powerpoint for Chapter 19

Powerpoint for Chapter 20

Powerpoint for Chapter 21

Powerpoint for Chapter 22


Session 7 - 2/23

Powerpoint for Chapter 23

Powerpoint for Chapter 24

Powerpoint for Chapter 26

Powerpoint for Chapter 27


Session 8 - 3/2

Powerpoint for Chapter 28

Powerpoint for Chapter 29

There are several types of agency that can attach to relationships, including express or actual agency; implied agency; and apparent agency or agency by estoppel.  Limited or special agency is for a specified purpose only.  Agents are fiduciaries.  Fiduciaries have a duty of communication and disclosure of material facts that affect the agency and/or the object of the agency.

All forms of agency except agency-coupled-with-an-interest may be revoked with reasonable notice or on other occurrences as referred to in the text.  An example of an agency-coupled-with-an-interest is a partnership, where the partner owns part of the business and the law imposes an agency relationship with the other partner(s).


3/16 Spring Break - No Class - Post mid-term for live students

Session 9 - 3/23 - No Class - Work on mid-term - post mid-term for tape students


Session 10 - 3/30- Mid-term due from "live" students

Powerpoint for Chapter 32

Powerpoint for Chapter 33

Powerpoint for Chapter 34

Powerpoint for Chapter 35

Powerpoint for Chapter 50

Sole Proprietorship =a single individual owns 100% of the equity in a business.

Partnerships , sometimes called general partnerships, arise automatically by operation of law when two or more individuals engage in business without creating some other form of business.  Partners are each personally liable, including personal assets, for the acts, bad or otherwise, of other partners in the conduct of the business.  Because partners have a property interest in the partnership, it can be sold and/or inherited, with the result that the remaining partner(s) have new partners who may or may not know anything about the business.  Community property laws can create special difficulties for partnerships.  Partnership agreements and insurance can relieve such problems.

Limited partnerships have at least one general partner, and one or more limited partners whose only role is capitalization.  Properly formed limited partnerships shield personal assets of limited partners.  However, general partners have the same potential agency and liability as in a general partnership.

Corporations are creatures of statute that permit the principals of the business to insulate personal assets from liability provided the corporation is properly created and maintained.  Under the law, corporations are fictitious persons, whose rights must be protected.  Corporations are liable only to the extent of corporate assets.  However, failure to properly create and maintain the corporation will cause the "veil" of protection to be pierced and subjects personal assets of the principals to liability, as well.  A disadvantage of corporations is that income gets taxed twice, once at the corporate level and again upon distribution to the principals.  Subchapter S corporations permit taxation as if they were partnerships.  Corporations are owned by stockholders, who appoint a board of directors who are responsible for the overall performance of the purposes of the corporation.  The board of directors, in turn, appoint officers who are responsible for the day to day operation of the organization.  Members of the board of directors who perform their duties negligently, or in bad faith, resulting in monetary damage to the shareholders, may be held personally liable.  Errors and omissions insurance is available to protect board members from unintentionally negligent acts or omissions.  Corporate by-laws dictate the authority of the board of directors and officers.  Board members and officers who exceed the authority granted by the by-laws are acting ultra vires and may be held liable by the shareholders or others that are damaged as a result.   Corporations are formed by filing Articles of Incorporation with the state authority, who then issues a Certificate of Incorporation.

Limited Liability Company is a relatively new form of business created by statute that is a hybrid of partnership and corporation.  LLC's have the same liability shielding aspects of corporations but are easily formed, as are partnerships.  They are formed by filing a state form and entering into an operating agreement with the other members of the LLC.  Members may be real persons, corporations or other LLC's.


Session 11 - 4/6 - Mid-term due from tape students

Powerpoint for Chapter 36

Powerpoint for Chapter 37

Powerpoint for Chapter 38

Session 12 - 4/13

Powerpoint for Chapter 30

Powerpoint for Chapter 31


Session 13 - 4/20

Powerpoint for Chapter 40

Powerpoint for Chapter 41

Powerpoint for Chapter 42

Powerpoint for Chapter 43


Session 14 - 4/27 - Post Final for live students

Powerpoint for Chapter 46

Powerpoint for Chapter 47

Powerpoint for Chapter 48


Session 15 - 5/4 - Post Final for tape students

Powerpoint for Chapter 44

Powerpoint for Chapter 45


Session 16 - 5/11 - Work on final

5/12 - Final due from live students

5/19 - Final due from tape students