Module 37: Introduction to Contracts

what is a contract?

legally forceable agreement. if not fulfilled, court will enforce deal

what is specific performance?

defendant ordered by court to actually perform terms of contract instead of asked to pay money damages to plaintiff

what are bilateral contracts?

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* each part promise to perform one or more acts at a later time
* Ex. Jay promises to move furniture if Rob promises to pay $300
* “promise for a promise”

Example of bilateral offer?

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* X promise to do something in promise of something from Y
* once X accepts the offer, then it becomes a bilateral contract

What is an offeror?

person making definite proposal

what is an offeree?

person who receives the proposal

what is a unilateral offer?

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* can be accepted only by the performance of a particular act
* contract formed only if one of the sides do something; promising is not enough

what is a valid contract?

all of the required elements are present; **enforceable** against both parties

what are voidable contracts?

one of the pirates has **legal right to withdraw** from contract at later time **without liability**

Are minor contracts voidable?

Yes, child can withdraw a contract with an adult

What are unenforceable contracts?

was valid at time it was made, but **later rendered unenforceable** because of application of some special rule of law

what are void contracts?

* **never** existed at all and never enforced by the court

what are express contracts?

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* parties involved fully and specifically stated the terms of deal
* Ex. agreement in writing

what are implied contracts?

sometimes infer by courts after examining conducts of parties

What are executory contracts?

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* lasts until both parties fully performed obligations
* Ex. sign contract calls on me to sell car for $5,000

What are executed contracts?

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* both parties complete their side of deal
* Ex. person brings $5,000, I give keys and title to car

What are negotiated contracts?

terms agreed upon after certain amount of bargaining between parties

What are contracts of adhesion?

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* one side prepares terms of proposed contract and presents to other party on *take-it-or-leave-it* basis
* Ex. apartment leases, hospital admission forms, sales contracts from new car dealers

what is Common Law?

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* Service contracts (employment contracts)
* Real estate contracts (leases)

what is Uniform Commercial Code (UCC)?

* better for everyone to adopt same set of rules for certain types of contracts

what is a good?

tangible, moveable physical objects

UCC governs ___ while Common Law governs…

goods

non-goods

What are the elements of a valid contract?

1. Valid offer
2. Offer must be accepted
3. Consideration must be present
4. All sides must have capacity
5. All sides must assent to the agreement
6. Agreement must be legal
7. \*Sometimes the contract must be in writing\*