BA LAW test 2

BA LAW test 2 - CHAPTER 7 CONTRACTS Contract promise that...

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CHAPTER 7 CONTRACTS Contract: promise that the court will enforce -Offer, acceptance, consideration, legality, capacity, form Sources of Contract Law o Common Law – all contracts (exp sales and leases) o Sale and lease contracts - Uniform Commercial Code (UCC) A contract is a: o Promise or set of promises, for breach of which, the law provides a remedy, or the performance of which the law in some way recognizes as a duty Objective Theory of Contacts : intent to enter into a contract id judged by objective (outward) facts as interpreted by a reasonable person, rather than by a party’s subjective intention. Objective facts include: 1) What the party said when entering into the contract 2) How the party acted or appeared 3) The circumstances surrounding the transaction TYPES OF CONTRACTS Bilateral v. Unilateral Bilateral - “promise for a promise”:Offeree must only promise to perform Unilateral - “promise for an act”: Offeree can accept the offer only by completing the contract performance. Revocation (modern): Offer cannot be revoked once performance has begun Express vs. Implied-in-Fact Express: Words (oral or written) Implied In Fact: Conduct of the parties creates and defines the terms of the contract. Requirements: o PL furnished good or service o PL expected to be paid o DEF had chance to reject and did not Formal v. Informal. Executed v. Executory Executed - performed on both sides Executory - has not been fully performed on either side Contract Enforceability Valid - has all elements needed for contract formation Void - this has no legal force or binding effect (no contract - ex:if its purpose was illegal) Voidable – valid contract that can be avoided by 1 or more parties (ex: contracts by minor are voidable at the minor’s option) QUASI-CONTRACTS ($value,expectation payment,unjust enrichment) Quasi Contracts are implied in law o Fictional contracts created by courts o Imposed on parties for the interest of fairness and justice o Equitable remedies o Quantum Meruit Limitations on Recovery – quasi contract can’t be imposed if there is an actual contract that covers the area in controversy. INTERPRETATION OF CONTRACTS Plain Meaning Rule: if a court determines that the terms of the contract are clear from the written document alone, the plain meaning rule will apply, and the contract will be enforced according to what it clearly states. Ambiguous Terms. If terms are ambiguous, court will attempt to interpret ambiguous contract terms in a reasonable, lawful, effective manner o Contracts are interpreted as a whole. o Terms negotiated separately given greater weight. o Ordinary, common meaning given. o
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This note was uploaded on 04/30/2010 for the course BA 241 taught by Professor Arbuckle during the Spring '09 term at Penn State.

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BA LAW test 2 - CHAPTER 7 CONTRACTS Contract promise that...

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