Chapter 9: Contracts Flashcards
Sources of Contract law
Common law for all contracts except sales and leases
Source for sales and lease contract law
Uniform Commercial Code
The function of contracts is to
Provides stability and predictability for commerce
A promise or set of promises for breach of which the law provides a remedy, or the perfomance of which the law in some way recognizes as a duty
Contract
The elements of a contract are
Agreement
Consideration
Contractual Capacity
Legality
An agreement consists of
An offer and acceptance
A consideration is
bargained for exchanged
Legality of a contract
Purpose of contract must be legal at the time of execution
Defenses to enforceability of a contract
Voluntary consent
Form
Offeree must only promise to perform
Formation of Bilateral Contract
Offeree can accept the offer only by completing the contract performance
Formation of Unilateral contract
Offer cannot be revoked once substantial performance has begun
Irrevocable
These contracts must be in writing to be enforceable
Formal Contracts
These contracts do not necessarily need to be in writing
Informal Contract
Words, oral or written, in a contract
Expressed Contracts
Conduct creates and defines the terms of the contract
Implied in fact contracts
Requirements for an implied contract
Plaintiff furnished goods or services
Plaintiff expected to be paid
Defendant had the chance to reject and did not
A contract that has been fully performed on both sides
Executed Contract
A contract that has not been fully performed on either side
Executory Contracy
Agreement, consideration, contractual capacity, and legality
Valid Contract
No contract at all
Void Contract
Unenforceable Contract
Voidable contract
Courts will enforce contract whose meaning are clear from the face of the instrument
Plain Meaning Rule
If terms are clear and unambiguous, the courts will not admit this
Extrinsic testimony or evidence
If terms are ambiguous, courts may admit this
Extrinsic testimony or evidence
