Introduction to Contracts and Everyday Agreements

The Ubiquity and Pervasive Nature of Contracts

  • General Misconception of Contracts: Contracts are often erroneously perceived only as massive, formal agreements involving large corporations, such as one company purchasing another. While these high-level agreements are indeed contracts, the reality of contract law is far more extensive and integrated into daily life.

  • Frequency of Engagement: Individuals encounter and enter into contracts multiple times throughout a single day, often without realizing the legal nature of their interactions.

Examples of Everyday Contracts

  • Parking Garages: When you enter a parking garage and receive a stub, a contract is formed. The agreement involves a reciprocal exchange:

    • The garage management is responsible for looking after the vehicle (to a certain extent).

    • The vehicle owner is responsible for paying a fee for this service.

  • Dry Cleaners: Dropping off a suit at a dry cleaner involves a contract even before the cleaning begins.

    • The Receipt: The receipt provided by the desk staff serves as an identification tool for the garment and acts as a contract document.

    • Implied Agreement: Even in the absence of a physical receipt, the act of leaving the suit with the expectation of picking it up later creates a contract where the cleaner expects payment and the customer expects the service.

  • Restaurants: The act of ordering food (e.g., steak and chips) in a restaurant constitutes a contract.

    • There is a mutual understanding: the establishment provides food and service, and the customer pays the bill.

    • One cannot simply leave without paying by thanking the staff for dinner; the obligation to pay is central to the contract.

Case Study: Informal Snow Shoveling in New England

  • Explicit Informal Agreements: In regions like New England that experience heavy snowstorms, local residents often engage in informal contracts.

    • Scenario: Local kids knock on a door and offer to shovel the driveway and walkway for a specific price, such as 2020.

    • Formation: Upon agreement, a contract exists. Once the work is performed, the homeowner owes the children 2020. The work is performed with the expectation of payment, not as a favor.

  • Complicating Factors and Ethical/Practical Questions:

    • Unsolicited Services: Consider a scenario where a homeowner is out of town and it snows. If the kids shovel the driveway without prior request and ask for 2020 upon the homeowner's return, the question of whether a contract exists arises.

    • Variable Conditions and Price Changes: If a storm drops 18 inches of snow, requiring significantly more labor, and the kids demand 3030 instead of an agreed-upon 2020, the legal obligation of the homeowner to pay the higher amount is a point of inquiry.

Course Objectives and Educational Philosophy

  • Purpose of the MOOC: The course does not aim to train participants to become professional lawyers.

  • Scope of Learning:

    • The course will not focus on drafting contracts.

    • It will not teach participants how to manage lawsuits or claims.

  • Goal: Understanding the "Forest" of Contracts: The objective is to help individuals understand the environment they navigate daily. The speaker describes this environment as a forest (rather than a hostile jungle) of contracts.

  • The Internal Combustion Engine Analogy: The course is likened to learning how an internal combustion engine works.

    • The goal is not to fix the car when it breaks down, but to understand what is happening "under the hood."

    • Practical Application: If a service station technician claims a transmission requires a repair costing 1,5001,500, a person with this knowledge understands what a transmission is and can determine if that cost is reasonable.

  • Environmental Awareness: The ultimate goal is for students to leave the course with a comprehensive understanding of the legal landscape that governs their daily interactions and expenditures.