study guide 2 - Overview of Contract Law contract An...

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Overview of Contract Law – contract - An agreement that can be enforced in court; formed by two or more parties, each of whom agrees to perform or to refrain from performing some act now or in the future. Promise – a person’s assurance that the person will or will not do something Promisee – a person to whom a promise has been made Promisor – a person who makes a promise Sources of Contract Law – common law governs all contracts expect when modified by statutory law (UCC) or by administrative agency regulations, contracts relating to services, real estate, employment, insurance are generally governed by common law contracts, contracts for sale and lease of goods are governed by UCC The Function of CL – encourages competent parties to form contracts for lawful objectives Contract = “a promise for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty” The objective theory of contracts A theory under which the intent to form a contract will be judged by outward, objective facts (what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction) as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions Elements of a Contract – Requirements of a valid contract – agreement (offer &acceptance, consideration, contractual capacity, defense (legality, genuineness of assent, form) Defenses to the enforceability of a contract – genuineness of assent, form Types of Contracts – Bilateral vs. Unilateral – bi - A type of contract that arises when a promise is given in exchange for a return promise, uni - A contract that results when an offer can only be accepted by the offeree’s performance (Ardito v. City of Providence – unilateral, breach of contract) Formal vs. Informal – form - A contract that by law requires a specific form, such as being executed under seal, to be valid, inform - A contract that does not require a specified form or formality in order to be valid Express vs. Implied – ex - A contract in which the terms of the agreement are fully and explicitly stated in words, oral or written, imp - A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract) (Gary Porter Construction v. Fox Construction) Contract Performance – Executed contract completely performed by both parties , Executory contract - not yet been fully performed Contract Enforceability Valid – contract that results when elements necessary for contract formation (agreement, consid, legal purpose & contractual capacity) are present Voidable – contract that may be legally avoided (canceled, or annulled) at the option of one of the parties Unenforceable – valid contract rendered unenforceable by some statute or law Void – contract having no legal force or binding effect Quasi Contracts –
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