leb study guide - Chapter 10: Nature and Classification of...

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Chapter 10: Nature and Classification of Contracts Contract Law - page 298 Contract law’s characteristics that make it natural starting point for an examination of the other commercial law subjects o 1. Pervasiveness in the average person’s everyday activities. Ex: when you buy a ticket you’ve entered a contract o 2. Basic principles are the underpinning of the more specialized business-related subjects- including sales and commercial paper o 3. Controversies presented usually require courts to examine earlier decisions handed down in cases involving similar fact-patterns Nature of a Contract Contract-agreement-one that the law will enforce in some manner in the event that one party does not perform its promise. Business agreements- not enforceable unless three elements are present: o 1. Consideration o 2. Capacity o 3. Legality Bilateral and Unilateral Contracts Each party has promised the other to perform one of more acts at a subsequent time. “Promise for a promise” are bilateral contracts If the terms of an offer indicate that all the offeror wants at the present time from the offeree is a return promise- rather than the immediate performance of an act-proposal is a bilateral offer o Most contracts are bilateral Offeror- is the one making the proposal Offeree- one to whom it is made Unilateral offers- accepted only by the performance of a particular act o The promisor receives no promise as consideration for his or her promise o Where an offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders the invited performance o Unilateral example: the promise by a seller of property to pay a real estate agent a commission when the agent finds a buyer for it. The real estate agent performs a brokerage function, bringing together willing buyers and sellers. Manifestation of mutual assent requires each party make a promise or begin to render a performance. Such manifestation of assent may be made wholly or partly by written or spoken words, or by other acts of the failure to act. Acceptance of an offer may be expressed by word, sign, writing, or act. Express, Implied, and Quasi-Contracts Express contract- Intentions of the parties are stated fully and in explicit terms, either orally or in writing. o Ex: real estate lease and construction contract Implied Contract- promises (intentions) of the parties have to be inferred primarily from their conduct and from the circumstances in which it occurred. o Is one not created or evidenced by explicit agreement, but inferred by the law as a matter of reason and justice from the acts and conduct of the parties and circumstances surrounding their transactions. o
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This note was uploaded on 08/18/2011 for the course LEB 323 taught by Professor Baker during the Spring '08 term at University of Texas.

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leb study guide - Chapter 10: Nature and Classification of...

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