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 .
Formation: Upon agreement, a contract exists. Once the work is performed, the homeowner owes the children . 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 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 instead of an agreed-upon , 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 , 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.