MIE chapter 11

MIE chapter 11 - Contract Formation Contract law deals with...

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Contract Formation Contract law deals with the formation and keeping of promises. A promise is an assertion that something either will or will not happen in the future. Contract law reflects our social values, interests, and expectations at a given point of time. Common law governs all contracts except when it has been modified or replaced by statutory law (UCC) or by administrative agency regulations. The function and definition of contracts Contract- a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Is an agreement that can be enforced in court. Between 2 or more parties. Provides stability and predictability for lawful objectives. Element of intent is important-objective theory of contracts- Elements of a contract Requirements of a valid contract- if ant of these elements is lacking, no contract will have been formed. 1) agreement-includes an offer and an acceptance. 2) Consideration-promises must be supported by legally sufficient and bargained for consideration, something of value received or promised. 3) Contractual capacity-must be competent 4) Legality-goal must be legal and not against public policy. Defenses 1) genuineness of assent-consent of both parties must be genuine (fraud, influence, mistake, duress) 2) form-must be in the correct form according to law. Types of contracts Contract formation -Bilateral vs unilateral- -offeror- the party making the offer - offeree- party to whom the offer is made. - bilateral-if to accept the offer, the offeree must only promise to perform. “promise for a promise” -unilateral-if the offer is phrased so that the offeree can accept the offer only by completing the contract performance. “promise for an act”. Will pay you $20 if you do this. -formal-contracts that require a special form or method of creation (formation)to be enforceable. Contract under seal- formalized writing with a special seal attached. L.S. stands for “locus sigilli” “the place for the seal”. -informal/ simple contracts-include all other contracts. No special form is required. -express vs implied-in-fact -express-the terms of the agreement are fully and explicitly stated in works, oral or written. Ex. Lease. -implied-in-fact-the conduct of the parties creates and defines the terms of the contract. The plaintfiff must have furnished service or property, was expected to be paid for it, and the defendant should have known, and the defendant had a change to reject the service and did not. Contract performance - executed-has been fully performed on both sides -executory – has not been fully performed by the parties. Contract enforceability - valid contract- -voidable contract-is a valid contract but one that can be avoided at the option of one or both of the parties. The party can avoid any duty to perform it or to make it valid. Ex. Contracts made by minors or by fraud. -unenforceable contacts-one that cannot be enforced because of certain legal defenses against it.
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MIE chapter 11 - Contract Formation Contract law deals with...

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