intro to contracts Flashcards
Contract
legally enforceable agreement, a promise the law will enforce
7 key characteristics that MUST be present to enforce a contract
- Offer
- Acceptance
- Consideration
- Legality
- Capacity
- Consent
- Writing
3 other important issues that can arise in contracts
- Third party interest
- Performance and discharge
- Remedies
Third party interest
can a third party sue someone in a contract
Performance and Discharge
party fully accomplishes a contract but was their performance enough to satisfy
Remedies
a court will award money or other relief to a party injured by a breach of contract
Bilateral Contract
both parties make a promise (most commonly used)
Unilateral Contract
one party makes a promise that the other party can accept only by actually doing something (less common)
Executory
when a contract has been made but one or more parties has not yet fulfilled its obligations
Executed
when all parties have fulfilled their obligations
Valid Contract
satisfies all of the law requirements and has no problems in any of the 7 must needed characteristics
Unenforceable agreement
occurs when the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it
Voidable Contract
Occurs when the law permits one party to terminate the agreement
Void agreement
neither party can enforce. usually because the purpose of the deal is illegal or because on of the parties had no legal authority to make a contract
Express Contract
the two parties explicitly state all the important terms of their agreement (majority uses)
Implied Contract
The words and conduct of the parties indicate that they intended an agreement
Promissory Estoppel
the defendant made a promise that the plaintiff relied on (usual circumstance)
Quasi Contract
Defendant received a benefit from the plaintiff (unusual circumstance)
If there is no contract can a plaintiff use promissory estoppel to enforce the defendants’ promise?
yes
What must a plaintiff show to use promissory estoppel
- defendant made a promise knowing the plaintiff would likely rely on it
- plaintiff did rely on the promise
- the only way to avoid injustice is to enforce the promise
Can a court use Quasi Contract to a compensate a plaintiff even if there is no contract
yes
What must a plaintiff show to use Quasi contract
- the plaintiff gave some benefit to the defendant
- the plaintiff reasonable expected to be paid for the benefit and the defendant knew this
- the defendant would be unjustly enriched if he did not pay
Quantum meruit
damages awarded, meaning that the plaintiff gets “as much as he deserves”
Express contract:
- did the defendant make a promise?
- is there a contract?
- yes
- yes
parties intend to contract and agree on explicit terms
Implied Contract:
- did the defendant make a promise?
- is there a contract?
- not explicitly
- yes
partied do not formally agree. follow words and conduct
Promissory Estoppel:
- did the defendant make a promise?
- is there a contract?
- yes
2. no
Quasi contract:
- did the defendant make a promise?
- is there a contract?
- no
2. no
Common law as a source of contract law
contracts decided using common law- law principles can be differ t in every state
Uniform Commercial Code as a source of contract law
wanted a body of law for business transactions that reflected modern commercial method and provided uniformity throughout the United States
UCC Article 2
MOST IMPORTANT PART OF THE CODE
governs the state of good, meaning anything moveable except for money, securities, and legal rights
