Contract Fundamentals

Question 1

bilateral v. unilateral k

Answer 1

1. Bilateral K: a contract formed by an exchange of promises
2. Unilateral K: involves only 1 promise (by offeror) that expressly requires performance to accept
   - K is formed ONLY when offeree completes performance

ET: “offer…ONLY IF…”

Question 2

express v. implied k

Answer 2

• Express: formed by express written or oral terms
• Implied-in-fact: formed by conduct of the parties
• Implied-in-law (Quasi-Contract): NOT a contract, is a restitution remedy to prevent unjust enrichment

Question 3

void, voidable, and unenforceable

Answer 3

• Void: No K exists, agreement has NO legal effect
• Voidable: problem w/ K exists, but it MAY be enforced or rejected @ the option of one party
• Unenforceable: is a valid K that CANNOT be enforced because a defense applies

Question 4

requirements to form a valid K

Answer 4

1. mutual assent (offer + acceptance),
2. consideration or a substitute, AND
3. no defenses to formation

Question 5

defenses to K formation

Answer 5

the following defenses make a K invalid or unenforceable
1. incapacity
2. duress
3. undue influence
4. mistake
5. misrepresentation
6. illegality
7. public policy
8. unconscionability
9. statute of frauds