Chapter 9 - Chapter 9 Introduction to Contracts i....

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Chapter 9 – Introduction to Contracts i. Contracts Make Things Happen ii. What is a Contract? A promise or set of promises that a court will enforce Certain elements must be present in order to achieve contract status iii. The Contract Elements Agreement o Offer o Acceptance Capacity Genuine Asset of the Parties Consideration Lawful Purpose In writing, if required LAMBERT V BARRON (LA ) FACTS: Friend was charged for services although he never formally agreed to the payments and term of consulting fees Lambert offered to give guidance to friend, Barron, more than 10 yrs through development and consulting boards Barron was going through a rough time and was depressed So Lambert flew to meet him
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Barron covered these charges and meant to pay $2000 more On the runway, Lambert says that Barron agreed to an verbal (unwritten) contract with him that constituted a minimum charge of $3,400 for a minimum of 1 year Barron claims he did not agree to this Barron did not receive any advice or any further contact with Lambert other than to return his calls. His staff paid the bill without his knowledge so he allowed it to go on Lambert sued for breach of contract and damages QUESTION of whether or not a contract was formed on the runway when Lambert came to visit him LEGAL REASONING Court found in favor of Barron, Lambert appeal Because Barron never received any business or proprietary benefits, he did not constitute a consulting relationship or contract between the two RULING: BARRON WAS SUPPORTED AND GIVEN DAMAGES iv. Types of Contracts How many people make a promise? BILATERAL CONTRACT – two parties make promises to one another UNILATERAL CONTRACT – only one party makes a promise; other party performs an act o Eg. Frequent Buyer Promotion How Valid is the Contract? VALID – an enforceable agreement VOIDABLE – the agreement is enforceable, but may be avoided at the option of one party
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o Eg. Lack of capacity VOID - the agreement is without legal effect because it is prohibited by law How was the Agreement Communicated? EXPRESS CONTRACT
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This note was uploaded on 12/29/2011 for the course VSB 3006 taught by Professor Cerino during the Spring '11 term at Villanova.

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Chapter 9 - Chapter 9 Introduction to Contracts i....

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