Test 3 Review.docx - Chapter 10 Nature and Classification...

This preview shows page 1 - 3 out of 14 pages.

Chapter 10 Nature and Classification Promise - a declaration by a person Promisor- a person who makes a promise Promisee- a person to whom a promise is made - Has a right to expect/demand that something either will/will not happen in the future Overview of Contract Law - Sources of Contract Law o Common law governs all contracts except when it has been modified/replaced by statutory law (UCC) o Contracts for sale/lease of goods are governed by UCC - Function of Contracts o Assures parties that the promise is enforceable - Definition of Contract o Contract- an agreement that can be enforced in court - Objective Theory of Contracts o Objective theory of contracts- a party’s intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person , rather than the party’s subjective intentions o Objective facts include What the party said when entering into the contract How the party acted or appeared The circumstances surrounding the transaction - Court Case : Pan Handle Realty, LLC v. Olin Elements of a Contract - Requirements of a Valid Contract o Agreement- an agreement to form a contract includes an offer and acceptance o Consideration- any promises made by the parties must be supported by legally sufficient and bargain-for value o Contractual capacity- both parties entering into the contract must have the contractual capacity to do so o Legality- the contract’s purpose must be to accomplish some goal that is legal and not against public policy - Defense to the Enforceability of a Contract o Voluntary consent- the consent of both parties must be voluntary, not made as a result of fraud, mistake, or duress (coercion) o Form- the contract must be in whatever form the law requires Types of Contracts - Contract Formation
o Bilateral v. Unilateral Bilateral contracts- a promise for a promise Ex- Promising to buy an iPhone for $200 Unilateral contracts- a promise for an act Ex- If you drive from A to B, I’ll give you $500 Revocation- offers are revocable until accepted o Formal v. Informal Formal contracts- contracts that require a special form/method of creation to be enforceable Ex- negotiable instruments (checks, drafts, promissory notes, certificates of deposit) Informal contracts- includes all other contracts o Express v. Implied Express contracts- the terms of the agreement are fully and explicitly stated in words, written or oral Implied contracts- the conduct of the parties, rather than their words, creates and defines at least some of the terms of the contract Requirements o The plaintiff furnished some service or property o The plaintiff expected to be paid for that service or property, and the defendant knew or should have known that payment was expected o The defendant had a chance to reject the services or property and did not - Contract Performance o Executed contract- a contract that has been fully performed on both sides o Executory contract- a contract that hasn’t been fully performed by the parties -

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture