Defenses.

Vitiating factors constituting defenses to purported contract formation include:

Mistake (such as non est factum).

Incapacity, including mental incompetence and infancy/minority.

Duress.

Undue influence.

 Unconscionability.

Misrepresentation or fraud.

Frustration of purpose.

Such defenses operate to determine whether a purported contract is either (1) void or (2) voidable. Void contracts cannot be ratified by either party. Voidable contracts can be ratified.

Misrepresentation.

Misrepresentation means a false statement of fact made by one party to another party and has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation. A finding of misrepresentation allows for a remedy of rescission and sometimes damages depending on the type of misrepresentation.

In a court of law, to prove misrepresentation and/or fraud, there must be evidence that shows a claim was made, said claim was false, the party making the claim knew the claim was false, and that party's intention was for a transaction to occur based upon the false claim.

There are two types of misrepresentation: fraud in the factum and fraud in inducement. Fraud in the factum focuses on whether the party alleging misrepresentation knew they were creating a contract. If the party did not know that they were entering into a contract, there is no meeting of the minds, and the contract is void. Fraud in inducement focuses on misrepresentation attempting to get the party to enter into the contract. Misrepresentation of a material fact (if the party knew the truth, that party would not have entered into the contract) makes a contract voidable.

Remedies for defendants on defenses.

Setting aside the contract.

To rescind is to set aside or unmake a contract. There are four different ways in which contracts can be set aside. A contract may be deemed 'void', 'voidable' or 'unenforceable', or declared 'ineffective'. Voidness implies that a contract never came into existence. Voidability implies that one or both parties may declare a contract ineffective at their wish. Kill fees are paid by magazine publishers to authors when their articles are submitted on time but are subsequently not used for publication. When this occurs, the magazine cannot claim copyright for the "killed" assignment. Unenforceability implies that neither party may have recourse to a court for a remedy.

Ineffectiveness arises when a contract is terminated by order of a court, where a public body has failed to satisfy the requirements of public procurement law. This remedy was created by the Public Contracts (Amendments) Regulations 2009.

Disputes.

Procedure.

In many countries, in order to obtain damages for breach of contract or to obtain specific performance or other equitable relief, the aggrieved injured party may file a civil (non-criminal) lawsuit in court.

In England and Wales, a contract may be enforced by use of a claim, or in urgent cases by applying for an interim injunction to prevent a breach. Likewise, in the United States, an aggrieved party may apply for injunctive relief to prevent a threatened breach of contract, where such breach would result in irreparable harm that could not be adequately remedied by money damages.

Formalities and writing requirements for some contracts.

A contract is often evidenced in writing or by deed, the general rule is that a person who signs a contractual document will be bound by the terms in that document, this rule is referred to as the rule in L'Estrange v Graucob. This rule is approved by the High Court of Australia in Toll(FGCT) Pty Ltd v Alphapharm Pty Ltd. But a valid contract may (with some exceptions) be made orally or even by conduct. Remedies for breach of contract include damages (monetary compensation for loss) and, for serious breaches only, repudiation (for example, cancellation). The equitable remedy of specific performance, enforceable through an injunction, may be available if damages are insufficient.

Typically, contracts are oral or written, but written contracts have typically been preferred in common law legal systems; in 1677 England passed the Statute of Frauds which influenced similar statute of frauds laws in the United States and other countries such as Australia. In general, the Uniform Commercial Code as adopted in the United States requires a written contract for tangible product sales in excess of $500, and real estate contracts are required to be written. If the contract is not required by law to be written, an oral contract is valid and therefore legally binding. The United Kingdom has since replaced the original Statute of Frauds, but written contracts are still required for various circumstances such as land (through the Law of Property Act 1925).

Representations versus warranties.

Statements of fact in a contract or in obtaining the contract are considered to be either warranties or representations. Traditionally, warranties are factual promises which are enforced through a contract legal action, regardless of materiality, intent, or reliance. Representations are traditionally precontractual statements that allow for a tort-based action (such as the tort of deceit) if the misrepresentation is negligent or fraudulent; historically, a tort was the only action available, but by 1778, breach of warranty became a separate legal contractual action. In U.S. law, the distinction between the two is somewhat unclear; warranties are viewed as primarily contract-based legal action while negligent or fraudulent misrepresentations are tort-based, but there is a confusing mix of case law in the United States. In modern English law, sellers often avoid using the term 'represents' in order to avoid claims under the Misrepresentation Act 1967, while in America 'warrants and represents' is relatively common. Some modern commentators suggest avoiding the words and substituting 'state' or 'agree', and some model forms do not use the words; however, others disagree.

Statements in a contract may not be upheld if the court finds that the statements are subjective or promotional puffery. English courts may weigh the emphasis or relative knowledge in determining whether a statement is enforceable as part of the contract. In the English case of Bannerman v White the court upheld a rejection by a buyer of hops which had been treated with Sulphur since the buyer explicitly expressed the importance of this requirement. The relative knowledge of the parties may also be a factor, as in English case of Bissett v Wilkinson where the court did not find misrepresentation when a seller said that farmland being sold would carry 2000 sheep if worked by one team; the buyer was considered sufficiently knowledgeable to accept or reject the seller's opinion.

A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties. A contract is legally enforceable when it meets the requirements of applicable law. A contract typically involves the exchange of goods, services, money, or a promise of any of those. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or cancellation.

In the Anglo-American common law, formation of a contract generally requires an offer, acceptance, consideration, and mutual intent to be bound. Each party must be those who are binding by the contract. Although most oral contracts are binding, some types of contracts may require formalities such as being in writing or by deed.

In the civil law tradition, contract law is a branch of the law of obligations.

Each country recognized by private international law has its own national system of law to govern contracts. Although systems of contract law might have similarities, they may contain significant differences. Accordingly, many contracts contain a choice of law clause and a jurisdiction clause. These provisions set the laws of the country which will govern the contract, and the country or other forum in which disputes will be resolved, respectively. Failing express agreement on such matters in the contract itself, countries have rules to determine the law governing the contract and the jurisdiction for disputes. For example, European Member States apply Article 4 of the Rome I Regulation to decide the law governing the contract, and the Brussels I Regulation to decide jurisdiction.

Electronic contracts.

Entry into contracts online has become common. Many jurisdictions have passed e-signature laws that have made the electronic contract and signature as legally valid as a paper contract.

In India, E-contracts are governed by the Indian Contract Act (1872), according to which certain conditions need to be fulfilled while formulating a valid contract. Certain sections in the Information Technology Act (2000) also provide for validity of online contracts.

In some U.S. states, email exchanges have become binding contracts. New York courts in 2016 held that the principles of real estate contracts apply equally to electronic communications and electronic signatures, so long as “its contents and subscription meet all requirements of the governing statute” and pursuant to the Electronic Signatures and Records Act (ESRA).

Intention to be legally bound.

In commercial agreements it is presumed that parties intend to be legally bound unless the parties expressly state the opposite as in a heads of agreement document. For example, in Rose & Frank Co v JR Crompton & Bros Ltd, an agreement between two business parties was not enforced because an "honor clause" in the document stated "this is not a commercial or legal agreement, but is only a statement of the intention of the parties".

In contrast, domestic and social agreements such as those between children and parents are typically unenforceable on the basis of public policy. For example, in the English case Balfour v Balfour a husband agreed to give his wife £30 a month while he was away from home, but the court refused to enforce the agreement when the husband stopped paying. In contrast, in Merritt v Merritt the court enforced an agreement between an estranged couple because the circumstances suggested their agreement was intended to have legal consequences.

Negligence.

Amongst unintentional torts one finds negligence as being the most common source of common law. Most Americans are under the impression that most people can sue for any type of negligence, but it is untrue in most US jurisdictions (partly because negligence is one of the few torts for which ordinary people can and do obtain liability insurance.) It is a form of extracontractual liability that is based upon a failure to comply with the duty of care of a reasonable person, which failure is the actual cause and proximate cause of damages. That is, but for the tortfeasor's act or omission, the damages to the plaintiff would not have been incurred, and the damages were a reasonably foreseeable consequence of the tortious conduct.

Some jurisdictions recognize one or more designations less than actual intentional wrongdoing, but more egregious than mere negligence, such as "wanton", "reckless" or "despicable" conduct. A finding in those states that a defendant's conduct was "wanton," "reckless" or "despicable", rather than merely negligent, can be significant because certain defenses, such as contributory negligence, are often unavailable when such conduct is the cause of the damages.

Breach.

Breach is ordinarily established by showing that the defendant failed to exercise reasonable care. Some courts use the terms ordinary care or prudent care instead. Conduct is typically considered to be unreasonable when the disadvantages outweigh the advantages. Judge Learned Hand famously reduced this to algebraic form in United States v Carroll Towing Company:

This means that if the burden of exercising more care is less than the probability of damage or harm multiplied by the severity of the expected loss, and a person fails to undertake the burden, he is not exercising reasonable care and is thus breaching his duty to do so (assuming he has one). In other words, the burden of prevention is less than the probability that the injury will occur multiplied by the gravity of the harm/injury. Under this formula, duty changes as circumstances change—if the cost of prevention increases, then the duty to prevent decreases; if the likelihood of damage or the severity of the potential damage increases, then duty to prevent increases.

Intentional torts.

Intentional torts involve situations in which the defendant desires or knows to a substantial certainty that his act will cause the plaintiff damage. They include battery, assault, false imprisonment, intentional infliction of emotional distress ("IIED"), trespass to land, trespass to chattels, conversion, invasion of privacy, malicious prosecution, abuse of process, fraud, inducing breach of contract, intentional interference with business relations, and defamation of character (libel/slander).

Elements.

The elements of most intentional torts follow the same pattern: intent, act, result, and causation.

Intent.

This element typically requires the defendant to desire or know to a substantial certainty that something will occur as a result of his act. Therefore, the term intent, for purposes of this section, always includes either desire or knowledge to a substantial certainty.

For an example in battery, Dave shoots a gun into a crowd of people because he is specifically trying to hit someone with a bullet. This element would be satisfied, as David had an actual desire to procure the harm required for this tort. Alternatively, Dave shoots a gun into a crowd of people for some reason and genuinely hopes no one gets hit but knows that it is virtually inevitable that someone will actually get hit. This element would still be satisfied, as David had knowledge to a substantial certainty that harm would result.

In contrast, if all that can be said about the defendant's state of mind is that he should have known better, he will not be liable for an intentional tort. This situation might occur if, as opposed to the examples above, Dave shoots a gun in a remote part of the desert without looking just for fun, not wanting to hit anyone, but the bullet does hit someone. Dave did not have a desire or knowledge to a substantial certainty that someone would get hit in this situation. He may, however, be liable for some other tort, namely negligence.

Transferred intent.

Transferred intent is the legal principle that intent can be transferred from one victim or tort to another. In tort law, there are generally five areas in which transferred intent is applicable: battery, assault, false imprisonment, trespass to land, and trespass to chattels. Generally, any intent to cause any one of these five torts which results in the completion of any of the five tortious acts will be considered an intentional act, even if the actual target of the tort is one other than the intended target of the original tort.

Public interest law refers to legal practices undertaken to help poor or marginalized people, or to effect change in social policies in the public interest, on 'not for profit' terms (pro bono publico).

It is not a body of law or a legal field. Rather, it denotes the clientele they represent. Instead of serving powerful economic interests, it stands for the advocacy of otherwise under-represented or vulnerable individuals, especially those living in poverty. It has grown to encompass a broader range of activities, typically the field of non-lawyers like civil rights, civil liberties, women's rights, consumer rights, environmental protection, and so on. Nevertheless, a common ethic for public-interest lawyers in a growing number of countries remains "fighting for the little guy".

By jurisdiction.

"Public interest law" is a term that became widely adopted in the United States during and after the social turmoil of the 1960s. It built on a tradition exemplified by Louis Brandeis, who before becoming a U.S. Supreme Court justice incorporated advocacy for the interests of the general public into his legal practice. In a celebrated 1905 speech, Brandeis decried the legal profession, complaining that "able lawyers have to a large extent allowed themselves to become adjuncts of great corporations and have neglected their obligation to use their powers for the protection of the people." In the late 1960s and 1970s, large numbers of American law school graduates began to seek "relevance" in their work—wishing to affect the social issues that were so visibly and hotly debated within American society at that time. They defined themselves as public interest lawyers in order to distinguish themselves from the "corporate adjuncts" referred to by Brandeis.

Summing up the movement's history in the United States, Stanford University Law Professor Deborah Rhode writes: "Public interest lawyers have saved lives, protected fundamental rights, established crucial principles, transformed institutions, and ensured essential benefits for those who need them most....In virtually every major American social reform movement of the last half century, public interest lawyers have played an important role."

Public interest law is institutionalized in the United States. Nongovernmental organizations that work to promote and protect human rights using the U.S. legal system, fight to protect the environment, or advocate on behalf of consumers, call themselves public interest law organizations. A large community of lawyers’ practices public interest law in the form of providing legal aid free of charge to those who cannot afford to pay for it. However, the grim reality remains that lawyers are underpaid and grossly overworked, offering perfunctory representation. Clinical legal education, which is well established in the United States, provides opportunities for law students to do practical legal work on basic legal matters as well as more complex public interest issues, such as women's rights, anti-discrimination law, constitutional rights, and environmental protection, among others. Some law schools have public interest law centers, which advise law students interested in pursuing public interest law careers. Pro bono programs at bar associations and law firms provide opportunities for commercial lawyers to donate time to public interest law activities.

Sports law in the United States overlaps substantially with labor law, contract law, competition or antitrust law, and tort law. Issues like defamation and privacy rights are also integral aspects of sports law. This area of law was established as a separate and important entity only a few decades ago, coinciding with the rise of player-agents and increased media scrutiny of sports law topics.

Amateur sports law.

Membership is voluntary. The NCAA operates along a series of bylaws that govern the areas of ethical conduct, amateur eligibility, financial aid, recruiting, gender equity, championship events, and academic standards. The NCAA has enforcement power and can introduce a series of punishments up to the death penalty, the company term for the full shut-down of a sporting activity at an offending college. Coaches are offered contracts and if any contractual agreement is violated NCAA has the right to hold any person under the contract liable.

Title IX is an increasingly important issue in college sports law. The act, passed in 1972, makes it illegal for a federally funded institution to discriminate on the basis of sex or gender. In sports law, the piece of legislation often refers to the effort to achieve equality for women's sports in colleges. The Office of Civil Rights (OCR) is charged with enforcing this legislation. This agency implemented a three-prong test for schools to adhere to:

Are the opportunities for female and male athletes proportionate to their enrollment?

Does the school have a history of expanding athletic opportunities for women?

Has the school demonstrated success in meeting the needs of its students?

In 1995 the Gender in Equity Disclosure Act was passed to require schools to make an annual, public report on male-female athletic participation rates, recruiting by gender, and financial support. The U.S. Supreme Court's decision in Brown University v Cohen, is an important aspect of litigation for women sports.

A critical piece of federal legislation, the Amateur Sports Act of 1978 guarantees certain due process rights including hearings and appeals for U.S. athletes under the governance of the USOC and its NGBs.

The alternative minimum tax (AMT) is a tax imposed by the United States federal government in addition to the regular income tax for certain individuals, estates, and trusts. As of tax year 2018, the AMT raises about $5.2 billion, or 0.4% of all federal income tax revenue, affecting 0.1% of taxpayers, mostly in the upper income ranges.

An alternative minimum taxable income (AMTI) is calculated, by taking the ordinary income and adding disallowed items and credits such as state and local tax deductions, interest on private-activity municipal bonds, the bargain element of incentive stock options, foreign tax credits, and home equity loan interest deductions. This broadens the base of taxable items. Many deductions, such as mortgage home loan interest and charitable deductions, are still allowed under AMT. The AMT is then imposed on this AMTI at a rate of 26% or 28%, with a much higher exemption than the regular income tax.

The Tax Cuts and Jobs Act of 2017 (TCJA) reduced the fraction of taxpayers who owed the AMT from 3% in 2017 to 0.1% in 2018, including from 27% to 0.4% of those earning $200,000 to $500,000, from 61.9% to 2% of those earning $500,000 and $1,000,000.

The major reasons for the reduction of AMT taxpayers after TCJA include the capping of the state and local tax deduction (SALT) by the TCJA at $10,000, and a large increase in the exemption amount and phaseout threshold. A married couple earning $200,000 now requires over $50,000 of AMT adjustments to begin paying the AMT. The AMT previously applied in 2017 and earlier to many taxpayers earning from $200,000 to $500,000 because state and local taxes were fully deductible under the regular tax code but not at all under AMT. Despite the cap of the SALT deduction, the vast majority of AMT taxpayers paid less under the 2018 rules.

The AMT was originally designed to tax high-income taxpayers who used the regular tax system to pay little or no tax. Due to inflation and cuts in ordinary tax rates, many middle-income taxpayers began to pay the AMT. The number of households owing AMT rose from 200,000 in 1982 to 5.2 million in 2017, but was reduced back to 200,000 in 2018 by the TCJA. After the expiry of the TCJA in 2025, the number of AMT taxpayers is expected to rise to 7 million in 2026.

Paternity law refers to the body of law underlying the legal relationship between a father and his biological or adopted children and deals with the rights and obligations of both the father and the child to each other as well as to others. A child's paternity may be relevant in relation to issues of legitimacy, inheritance and rights to a putative father's title or surname, as well as the biological father's rights to child custody in the case of separation or divorce and obligations for child support.

Under common law, a child born to a married woman is presumed to be the child of her husband by virtue of a "presumption of paternity" or presumption of legitimacy. In consideration of a possible non-paternity event (which may or may not include paternity fraud) these presumptions may be rebutted by evidence to the contrary, for example, in disputed child custody and child support cases during divorce, annulment or legal separation.

In the case of a father not married to a child's mother, depending on the laws of the jurisdiction:

a man may accept the paternity of the child in what is called an acknowledgment of paternity, voluntary acknowledgement of paternity or affidavit of parentage,

the mother or legal authorities can file a petition for a determination of paternity against a putative father, or

paternity can be determined by the courts through estoppel over time.

Today, when paternity is in dispute or doubt, paternity testing may be used to conclusively resolve the issue.

Goldman Sachs Group, Inc v Arkansas Teacher Retirement System, (2021), was a 2021 decision of the Supreme Court of the United States related to securities fraud class actions.

Background.

A group of investors sued Goldman Sachs after the financial crisis of 2007–2008 to recover up to $13 billion in losses. In 2020, a panel of the United States Court of Appeals for the Second Circuit allowed the class action to proceed, 2–1. Judge Richard J Sullivan dissented.

Decision.

The Supreme Court issued its decision in June 2021, vacating the court of appeals' judgment and remanding it for further proceedings. A unanimous court found that the presumption of class-wide reliance established in Basic Inc v Levinson required the defendant's statements to be more than just generic guarantees. An 8–1 court, with Justice Sonia Sotomayor dissenting, found that the lower court had not adequately followed this framework, and remanded for further proceedings. A 6–3 court, with Justice Neil Gorsuch dissenting, joined by Justices Clarence Thomas and Samuel Alito, held that defendants have the burden of proof in rebutting the presumption of reliance.