BL-Chapter 9 - 1 CHAPTER 9 NATURE OF TRADITIONAL AND...

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CHAPTER 9 NATURE OF TRADITIONAL AND E-CONTRACTS Introduction to Nature of Traditional and Online Contracts -Parties voluntarily enter into contracts -The terms of a contract become private law between the parties -Most contracts are performed without the help of courts and are legally enforceable -Some contracts such as illegal contracts are not enforceable Definition of a Contract A contract is an agreement that is enforceable by a court of law or equity Introduction Basis of many daily activities. Means for individuals and businesses to sell and otherwise transfer property, services, and other rights. Without enforceable contracts, commerce would collapse. Contracts are voluntarily entered into by parties. Terms of the contract become private law between the parties. Legally Enforceable Contract If one party fails to perform as promised, the other party can sue to enforce the contract and recover damages. Parties to a Contract Every contract involves at least two parties. Offeror – the party who makes an offer to enter into a contract. 1
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Offeree – the party to whom an offer is made. In making an offer, the offeror promises to do or refrain from doing something The offeree then has the power to create a contract by accepting the offeror’s offer Elements of a Contract Agreement Offer by offeror and acceptance by offeree. Mutual assent by the parties Consideration The promise must be supported by bargained-for consideration that is legally sufficient. E.g., money, services Gift promises and moral obligations are not considered supported by valid consideration Contractual Capacity Parties must have capacity. Certain parties, such as minors or persons adjudged to be insane, do not have contractual capacity. Lawful Object The object of the contract must be lawful. E.g., contracts to commit a crime have an illegal object. 2
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Contracts to accomplish illegal objects or contracts that are against public policy are void. Defenses to Enforcement of a Contract •Genuineness of Assent - The consent of the parties to create a contract must be genuine Lacking if consent is obtained by: Duress Undue influence Fraud Writing and Form Law requires that certain contracts be in writing or in a certain form. Sources of Contract Law Common Law of Contracts - The common law of contracts developed from early court decisions that became precedent for later decision -There is a limited federal common law of contracts that applies to contracts made by the federal government -The larger and more prevalent body of common law has been developed from state court decisions Uniform Commercial Code (UCC) 3
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- The provisions of the UCC normally take precedent over the common law of contracts
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BL-Chapter 9 - 1 CHAPTER 9 NATURE OF TRADITIONAL AND...

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