Contracts 1 - Nick - 1 What is the definition of a contract...

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1. What is the definition of a contract? A contract is a promise or set of promises which: When performed, the law recognizes in some way as a duty When breached, the law gives a remedy 2. What are the elements of a valid contract? A contract is created when the following 3 elements exist 1. Mutual assent by the parties 2. Consideration from the parties 3. No defenses to the creation of a contract (nothing stopping it) Mutual assent is often referred to as a “meeting of the minds” by the parties. One party makes a proposal – an offer Other party agrees to it – an acceptance Subjective meeting of the minds is not required – courts use an objective measure where parties are bound by what a reasonable person would construe as parties’ intentions based on their actions He also includes these as the elements of contracts (but not necessarily valid) ( slides 46- 48) Whereas Parties Definitions Scope of Contract Drawings and Specifications Price and Payment Terms Delivery Terms 3. What are the different classifications of contracts? Express Contracts Formed by language Oral or written Implied Contracts Formed by conduct Assent by means other than oral or written (such as a handshake) Quasi-contracts Not contracts Construed by courts to avoid unjust enrichment by one party 4. Is a contract a negotiable instrument? What does this mean? A negotiable instrument is a transferable, signed document that promises to pay the bearer a sum of money at a future date or on demand. Eg – checks, bills of exchange, promissory notes.
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His slides do not explicitly say, but this seems to fit the requirements in (2).
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Contracts 1 - Nick - 1 What is the definition of a contract...

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