o RULING: The court found that Hopkins, through his conduct, had waived the provision requiring written contract modification and created an implied contract to pay the extra cost of installing the Durisol blocks. Executed contract: a contract that has been performed on both sides Executory contract : a contract that has not been fully performed by the parties Valid contract : has the elements necessary to entitle at least one of the parties to enforce it in court [(1) an agreement, including an offer and an acceptance of that offer; (2) support by legally sufficient consideration; (3) parties who have the legal capacity to enter into the contract; and (4) a legal purpose] Voidable contract : a valid contract but one that can be avoided at the option of one or both parties. o The party having the option can elect either to avoid any duty to perform or to ratify (make valid) the contract. If the contract is avoided, both parties are released from it. If it is ratified, both parties must fully perform their respective legal obligations. Unenforceable contract: one that cannot be enforced because of certain legal defense against it. It is not unenforceable because a party failed to satisfy a legal requirement of the contract Void contract: a void contract is no contract at all. The terms void and contract are contradictory. o A void contract produces no legal obligations on any of the parties. QUASI CONTRACTS: Quasi contracts : contracts implied in law are not actual contracts o Quasi = Latin for “as if” or “analogous to” o They are fictional contracts that courts can impose on the parties “as if” the parties had entered into an actual contract. They are equitable rather than legal contracts. o Doctrine of quasi contract cannot be used when there is an actual contract that covers the matter in controversy o Usually imposed to avoid unjust enrichment of one party at the expense of another Based on the theory that individuals should not be allowed to profit or enrich themselves inequitably at the expense of others Quantum meruit : A plaintiff may recover in quantum meruit when the court imposes a quasi contract o Latin phrase: “As much as he or she deserves” o Essentially describes the extent of compensation owed under a contract implied in law Case 10.1 – Scheerer v. Fisher (quantum meruit principle): o BACKGROUND: Scheerer asked Fisher to investigate the value of 2 properties and in turn he would receive a commission off of the sale. Fisher canceled his sale with the potential 4
Ch. 10 – Nature and Terminology buyer and sold it to someone else. Fisher did not notify or include Scheerer's commission in the new sale. Scheerer sued for his commission and lost. He appealed.
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- Fall '08
- Business Law Outlines