NATURE OF CONRACTS
Definition of a Contract
– a promise or set of promises for the breach of which the law gives remedy, or performance of which the law recognizes as a duty
Elements of a contract
The Offeror must have serious intention to become bound by the offer.
. The terms of the offer must be reasonably certain or definite so that the
parties/court can determine the terms of the contract
. The offer must be communicated to the offeree),
(voluntary act by the offeree that shows agreement to the terms of the
.something of sufficient value must be given for exchange.
. Usually there must be a bargained for exchange; lack of consideration: preexisting duty, past
consideration, illusory promises)
in the right mind able to make a contract
the action of the contract is legal
meeting of the minds: parties agree on same thing
requirements: are there any formal requirements to make this contract legal?
promise for a promise no performance needed at the time of formation
promise for an act; formed at the moment the contract is performed
Objective theory of contracts
a party’s intention to enter into a legally binding agreement or contract, is judge outward,
objective facts (
what the party said when entering into the contract,
how the part acted or appealed, and
the circumstances surrounding the contract) as interpreted by a legal person
based on checklist (above)
parties, contract, consideration, time of performance, description.
promise or commitment: to
do or restrain from something specified in the future. Offeror (gives offer) can revoke offeree (presented to) can reject or counter offer or make option contract: a payment to keep offer open
must be clear, in complete agreement to the offer, communication must e in form and timely as stated by the offer, silence may work rarely.
Implied in fact contract
conduct of the parties defines the terms of the contract. (ex. some one receiving nursing care)
the terms of agreement are fully and explicitly stated in words, oral or written.
quasi contract - defendant receives quantum Meruit “as much as they deserve” as decided by the courts, the extent of compensation owed under a contract implied in law
Termination of Offer by operation of Law
: lapse of offer UCC (uniform commercial code) allows for 90 days, destruction of subject matter of the offer, death or incompetence of Offeror or
: can disaffirm contract at minor’s will except necessaries,
- becoming of age, or misrepresentation age
voidable until court has ruled incompetence then void, valid if made before incomp.
; Intoxicated persons:
voidable if intox is to the point that one lacks that the mental capacity to make the