Test 2 Review - Chapter 10 Nature and Classification of Contracts Nature of a Contract p.296 Contract special sort of agreement enforceable by law in

Test 2 Review - Chapter 10 Nature and Classification of...

This preview shows page 1 - 3 out of 34 pages.

Chapter 10 Nature and Classification of Contracts Nature of a Contract – p.296 Contract- special sort of agreement enforceable by law in event that one party does not perform its promise o It is pervasive in the average person’s everyday activity o The basic principles of contract law are the underpinning of the more specialized business-related subjects, including sales and commercial paper, partnership and corporation law, and other areas o Since the subject of contracts is essentially common-law in nature, the controversies that are presented usually require the courts to examine earlier decisions handed down in cases involving similar fact-patterns (thus the doctrine of stare decisis is illuminated and an allied question affords an opportunity to analyze more fully the process of judicial reasoning) Need three elements: consideration, capacity, and legality Classification of Contracts – p.297 Offers/proposals precede the making of a contract Bilateral and unilateral contracts o Bilateral – promise for promise; can be promise to act or immediate performance of an act Bilateral offer – 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 Offeror – person making proposal Offeree – person to whom offer is made o Unilateral – phrased in such a way that can be accepted only by performance of a particular act E.g. brokers Express, implied, and quasi-contracts o Express – intentions of parties are stated fully and in explicit terms either orally or in writing o Implied – promises (intentions) of parties have to be inferred primarily from conduct and from circumstances in which it occurred o Quasi-contract – exceptional circumstances where court feels compelled to impose an obligation upon one person regardless of whether he or she had any intention of making a contract; imposed only in circumstances where failure to impose such obligation would result in one party receiving an “unjust enrichment” Quantum meruit – “as much as deserved” Limitations Cannot be invoked by one who has conferred benefit unnecessarily or as a result of negligence or other misconduct; if you perform service to wrong person, can’t sue that person for money Not “true” contracts but remedies can still be granted Plaintiff can’t recover from one person if originally looked to another for compensation (e.g. original offeror dies)
Image of page 1
Valid, voidable, and void contracts o Valid – all required elements are present; enforceable against both parties o Voidable – one of the parties has legal right to withdraw from it at a later time without liability o Void – like never existed; reasons: One of parties is wholly incompetent at time of contracting Purpose of contract is totally illegal o Unenforceable – valid at time it was made but subsequently rendered unenforceable
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 34 pages?

  • Spring '08
  • Baker
  • parties

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes