Exam 1 review.docx - CHAPTER 9 OUTLINE 1 Chapter 9 Outline Define a contract A contract id an agreement that is enforceable by a court of law or equity

Exam 1 review.docx - CHAPTER 9 OUTLINE 1 Chapter 9 Outline...

This preview shows page 1 - 3 out of 10 pages.

CHAPTER 9 OUTLINE 1 Chapter 9 Outline Define a contract: A contract id an agreement that is enforceable by a court of law or equity. A contract is a promise or a set of promises for breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty. List the elements necessary to form a valid contract: Agreement – between parties. This requires an offer by the offeror and acceptance from the offeree. Consideration – A promise must be supported by a bargained-for consideration that is legally sufficient; i.e. money, personal property, real property, provisions of services. Contractual Capacity – All parties must have contractual capacity for the contract to be enforceable against them. Lawful Object – The object of a contract must be lawful. Contracts that have an unlawful object are void and unenforceable. Distinguish between bilateral and unilateral contracts: Bilateral Contracts – A contract entered into by way of exchange of promises of the parties; “a promise for a promise”. Unilateral Contract – A contract in which the offeror’s offer can be accepted only by the performance of an act by the offeree; “a promise for an act”. Describe and distinguish between express and implied-in-fact contracts: Express Contract – An agreement that is expressed in written or oral words. Implied-in-fact Contract – Contracts that are implied from the conduct of the parties. The following elements must be established to create an implied-in-fact contract: The plaintiff provided property or services to the defendant. The plaintiff expected to be paid by the defendant for the property or service and did not provide the service gratuitously. The defendant was given an opportunity to reject the property or service provided by the plaintiff but failed to do so. Describe and distinguish among valid, void, voidable and unenforceable contracts: Valid Contract – a contract that meets all essential elements to establish a contract; a contract that is enforceable by at least one of the parties. Void Contract – a contract that has no legal effect; a nullity. Voidable Contract – a contract in which one or both parties have the option to void their contractual obligations. If a contract is voided, both parties are released from their contractual obligations. Unenforceable Contract – a contract in which the essential elements to create a contract are met but there is some legal defense to the enforcement of the contract.
Image of page 1
CHAPTER 9 OUTLINE 2 Other Definitions: Applied-in-law Contract – a contract implied by law to prevent unjust enrichment. Formal Contract – a contract that requires a special form of method of creation.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 10 pages?

  • Spring '14
  • PatriciaMullins-Freeman

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes