Contract Law Study Guide

Contract Definition: A voluntary agreement between two or more parties to perform or refrain from a specific act, supported by consideration.
Legal Remedies: Law provides damages or equitable remedies for breaches.

Unilateral Contract: An offer is made that can only be accepted by complete performance.
- Full execution constitutes acceptance.
Bilateral Contract: Both parties promise to perform their obligations, involving mutual promises.

Express Contracts: Made through explicit statements, either verbal or written.
Implied Contracts: Formed through conduct or performance.
- In Fact: Result of actions or conduct.
- In Law (Quasi-Contract): Court can imply a contract to prevent unjust enrichment when services are performed and not compensated.

Valid Offer: Must be clear and communicated, satisfying the objective theory of contracts.
Valid Acceptance: Agreement to terms.
Capacity: Parties must understand the terms and have the legal ability to contract.
Consideration: Something of value exchanged.
Lawful Purpose: Contracts must comply with public policy.

Contracts enforceable by law must be in writing and signed for:
- Sales of Goods over $500$ .
- Sale of real property.
- Leases longer than one year.

Parties benefiting from a contract who are not part of the contract may include:
- Creditor Beneficiary: Owed debt by one party; can sue if not paid.
- Intended Donee Beneficiary: Non-debt owed but benefits from the contract based on intentions.

Nominal Damages: Awarded when a plaintiff fails to prove actual damages despite breach.
Compensatory Damages: For actual losses; must be reasonable and foreseeable.
Consequential Damages: Resulting indirectly from the breach.
Liquidated Damages: Pre-determined in the contract.
Punitive Damages: For wrongful conduct in bad faith.

Capacity Issues: Includes minors or mentally incompetent individuals.
Impossibility of Performance: Events that prevent fulfillment of contract terms.
Duress: Signing under pressure or threat.

Warranty Theory: Breaches of warranties tied to the Uniform Commercial Code.
- Warranty of Merchantability: Assurance of goods meeting expected standards.
- Warranty of Fitness for Particular Purpose: Goods must meet specific user needs when disclosed.
- Warranty Against Encumbrance: Goods sold are free of any surcharges or legal claims.

Historical contracts established employee and employer relationships during key labor laws.
National Labor Relations Act of 1935: Protects employee rights to unionize and engage in collective bargaining.
- Addressing unfair labor practices.
- Landrum Griffin Act of 1959: Protects union members' rights with provisions against abuses.
- Collective Bargaining: Must negotiate mandatory topics involving working conditions, agreements must be made in good faith.