Intro to Formation of Contracts

Question 1

What are the three elements of contract?

Answer 1

Agreement (parties must be in agreement)
Intention to be legally bound
Consideration (something of value is exchanged)

Question 2

What types of contract MUST be in writing?

Answer 2

1. Guarantees (I guarantee your debt)
2. Sale/disposition of interest in land
3. Consumer credit agreements

Question 3

What are the requirements for a deed?

Answer 3

1. Signed and witnessed
2. Delivered (includes the words “delivered on X date”

Question 4

What contracts MUST be executed as deeds?

Answer 4

1. Promises with no consideration (nothing in return)
2. Conveyance of land (transfer of land)

Question 5

What is the consequence of executing as a deed for claim periods?

Answer 5

Claim under normal contracts must be brought within 6 years from date of breach, for deeds it is 12 years