Legal Environment of Business: Contract Law

There are some exclusions that lead a court to look beyond the “four corners” of a contract in order to discover the purpose of the parties. This was exemplified in two recent Indiana Court of Appeals cases.

Puffery - an exaggeration that no reasonable person would take seriously

Dallas-based Pizza Hut, the nation’s largest pizza chain, says it has waged a two-year battle against Papa John’s to uphold truth-in-advertising.

Contracts and other legally binding documents are almost always enforceable, and it takes a very specific set of facts to void them. Although there is an exception to capacity for those who suffer from degenerative mental diseases, it can be difficult to show that the person was suffering debilitating effects when the contract, will, power of attorney, or other agreement was entered into or executed.

From the Georgia Governor's Office of Consumer Protection

Photographer sued for breach of contract, fraud and concealment, and negligent infliction of emotional distress.

Mr Thwaytes alleged that Sotheby’s failed adequately to research a painting and failed to notice certain features of it that should have indicated to them that it had ‘Caravaggio potential’.

When mistakes are made, it depends on many factors as to if that contract can be voided or not.

This Article argues that the existing doctrinal roadblocks to incomplete contracts are out of step with the normative goals of commercial contracting--promoting efficiency and incentivizing commercial activity.