Contract Law Overview and Importance of Written Agreements

Fundamentals of Contracts

• Contracts are based on agreements between parties.

• The key question: Does the agreement need to be in writing to be binding?

• The risk lies in whether certain types of contracts must be documented in writing to uphold rights.

Contracts Requiring Written Form

• Certain contracts must be in writing (find under the Statute of Frauds).

• Examples include:

  • Sale of Land - Always requires written agreement.

  • Sale of Goods Over $500 - Contracts must be in writing if the value exceeds $500.

Core Elements of a Contract

• Agreement

• Must be between two parties; one party makes an offer, and the other must accept.

• Consideration

• Something of value must be exchanged.

• Reality of Consent

• Parties must willingly and knowingly consent to the terms.

• Capacity

• Both parties must have the legal ability to enter into a contract (e.g., not minors or intoxicated).

• Legality

• The contract's purpose must be lawful.

Discussion of Case Study

• A student from Taiwan applying to a U.S. university:

• Their acceptance does not create a traditional contract immediately; rather, an offer to enroll is made.

• Various roles available to students (like Teaching Assistants) provide an opportunity for financial support through work.

• Importance of contract provisions and agreements in employment with schools

• Determine if the contract can be performed within a year to see if it requires writing.

• For example, a semester-long teaching assistantship may not need to be in writing if it is executed within one year.

Clarification of Misconceptions

• Contract formation validity is judged at the time the contract is made, not after any breaches occur.

• Parties’ intent at the time of formation is crucial in assessing whether Reality of Consent exists.

• Performance issues do not factor into determining consent or initial agreement validity.

Statute of Frauds Recap

• Recap the types of agreements requiring a written format:

• Typically transactions involving sale of land and significant amounts (goods above $500).

• Not all services contracts need to be written; the context of performance duration matters.

Concluding Thoughts

• Emphasizes maintaining written documents to prevent disputes and secure legal rights.

• Encourages students to understand the importance of contract terms and eventualities to avoid future conflicts.

• Reminds that clarity in agreements aids better understanding of obligations and rights.