Chapter 9 - Chapter 9 Contract Formation Contracts Contract...

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Chapter 9 Contract Formation
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Contracts Contract – a promise or set of promises for  the breach of which the law gives a  remedy, or the performance of which the  law in some way recognizes as a duty. Contracts are governed by the common  law Except statutory replacements – UCC
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Elements of a Contract How can we tell if a contract exists? Intent of the parties Objective theory – look at the parties’ words,  actions and circumstances. Elements to a contract Agreement   Offer and Acceptance Consideration  – must give/get something of value Capacity  – parties must be legally competent Legality  – the contract’s purpose must be legal, or  not violate public policy
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Types of Contracts Bilateral contracts  – an exchange  of promises Unilateral contracts  – a promise  for an act.  Acceptance of offer is  by performance, not promise.
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Types of Contracts Expressed contract  – both parties  state their intended performance  ahead of time Implied contract  – a party performs  with the expectation of receiving  performance in exchange Plaintiff furnishes some property or  services Plaintiff expected to be paid and  Defendant knew it Defendant had chance to reject service,  but didn’t
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Contracts Executed contracts  – agreements which  have been performed by both parties. Executory contracts  – agreements which  are not yet fully performed. Void contracts  – no enforceable  agreement exists for either party. Voidable contracts  – valid contracts that  can be avoided by one party. Unenforceable contracts  – an otherwise  valid contract that cannot be enforced due  to a legal defense. Statute of Frauds
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Contracts Agreements Mutual assent of the parties to the same  terms of a bargain. Requires an “Offer” and “Acceptance” Offer   is the initial promise to do, or not do, an  act that the party has a right to do. Creates the power of acceptance.  Valid offer: The offeror must have intent to be bound by the offer The terms of the offer must be reasonably certain The offer must be communicated to the offeree
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Offers Offers must be objectively serious and not  made in obvious jest, anger or undue  excitement. Lucy v. Zehmer
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This note was uploaded on 04/29/2009 for the course BL 230 taught by Professor Hunt during the Spring '09 term at Western Illinois University.

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Chapter 9 - Chapter 9 Contract Formation Contracts Contract...

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