Contracts Flashcards
what is a contract?
a contract is an AGREEMENT (1) ENFORCEABLE AT LAW (2) between two or more COMPETENT PARTIES (3) upon a LAWFUL AND SUFFICIENT CONSIDERATION (4) to DO OR NOT DO A SPECIFIC THING (5).
essentials of a contract
- manifestation of mutual assent (agreement)
- legality of object (enforceable at law)
- capacity of parties (competent parties)
- consideration (lawful and sufficient)
- definiteness (to do or not do a specific thing)
if all essentials of a contract are present
the promise is contractual.
if any is lacking, the promise is not binding
is writing an element of a contract?
no BUT it may require writing if it would not be fully performed within a year
T or F: every contract is an agreement, but not every agreement is a contract
TRUE
for it to be a contract, you have to do something
common law
deals with common law rules from England comes from a judge more harsh all details must be included for it to be a contract
UCC article 2
deals with goods (movable, tangible, personal property)
legislation
flexible
only quantity must be included in contract, everything else can be worked out
formal vs informal
if its not formal, its informal
3 types of formal
- contract under seal
- negotiable instruments
- recognizance
contract under seal
doesn’t exist anymore
a seal gave legal efficacy
negotiable instruments
ie a check
express vs implied
express - in language (writing or oral)
implied - 2 types, implied in fact (shown through contract) and implied in law (quasi contract; law creates contract to avoid injustice)
unilateral vs bilateral
unilateral - one promise (example: promise in exchange for act or forbearance)
bilateral - two promises (promise for promise)
valid
has all essential elements of a contract
void
no contract at all, should be void obligation
