stonybrook-chapter10guide - Chapter 10: Contract Law,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10: Contract Law, Nature and Terminology An Overview of Contract Law The Function of Contracts o Ensures compliance with a legally-binding promise Definition of a Contract o A contract is a legally binding promise between two parties (promisor and promisee) to perform, or refrain from performing, some act, either now or in the future o If there is a breach of contract, the law provides a remedy to the innocent, or non-breaching party Objective Theory of Contracts o Intent to enter into a contract is judged by objective (outward) facts as interpreted by a reasonable person, rather than by a party’s subjective intention. Objective facts include what the party said when entering into the contract, how the party acted or appeared, and the circumstances surrounding the transaction. Elements of a Contract Requirements of a Valid Contract o Agreement This requirement includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the offer. o Consideration Promises must be supported by legally sufficient and bargained-for consideration. o Contractual Capacity These include characteristics that qualify the parties to contract as competent. o Legality A contract’s purpose must be to accomplish a goal that is not against public policy.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Defenses to the Enforceability of a Contract o Genuineness of Assent The apparent consent of both parties must be genuine. o
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/24/2011 for the course AEM 3210 taught by Professor Grossman,da during the Fall '07 term at Cornell University (Engineering School).

Page1 / 5

stonybrook-chapter10guide - Chapter 10: Contract Law,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online