lesson 7 Flashcards
contract
legally enforceable or binding agreement or a promise that the law will enforce
to be a valid contract, what 7 elements must be present?
Offer, acceptance, consideration, legality, capacity, consent, sometimes a writing
offer
type of proposal or suggested deal
acceptance
agreement to the offer that is communicated
bilateral contracts
2 promises that form a contract
unilateral contract
only 1 party makes a promise, the other party accepts by doing something
bilateral vs unilateral examples
bilateral: i will pay you $200 if you agree to mow my lawn
unilateral: i will pay you $200 if you fix my guitar
executory contract
contract is made but one party has not fulfilled or performed
executed contract
all parties have fulfilled their obligations or promises
valid contract
legitimate contract that satisfies all of the law’s requirements, all elements exist
unenforceable agreement
both parties want to make an agreement or intend to make a contract, but for some reason the courts or law will not enforce it
voidable contract
type of contract that may be terminated by one of the parties
voidable contract example
Bob offers James tickets for $50 and tells him Jim Beamer will be there. James is a fan, so he buys the tickets. Beamer ends up not being there, and b/c Bob’s offer is fraudulent, James has the option to terminate the contract.
void contract
one that neither party can enforce. often times it is because the purpose of the contract is illegal, and the state does not want to support it.
express contract
clear in their terms and explicitly state what parties are promising to do (majority of contracts)
common express contract that is litigated in the business world is
covenants not to compete
implied contracts
based on the conduct of the parties. there are no express terms, involves a course of action
implied contract example
Bob hires Joe to mow his yard every week for 4 weeks. Joe continues after 4 weeks, and Bob continues to pay. On week 9, Bob refuses to pay and says he only hired Joe for 4 weeks. The courts would find that there is an implied contract due to course of conduct.
promissory estoppel
when a party relies on certain assurances, sometimes the court will hold that the other party is estopped (prevented) from disclaiming the assurance
elements of promissory estoppel
- defendant made a promise
- defendant knew or should have known that the plaintiff would rely on the promise
- it would be unjust to not enforce the promise
quasi contracts
in some instances, the court will find that even when there was no contract, the courts should hold one or more of the parties responsible for some action
quasi contract example
Heather leases a large farm from corporation for 6 years. In the 6th year, after 3 months, the corporation dramatically raised their prices and the parties were unable to come to an agreement on a new lease. most courts would allow Heather to receive some sort of token compensation
sources of contract law
- federal/state statues, federal/state case law precedent
- most times will be state law instead of federal
- also significantly found in the uniform commercial code
UCC
a huge body of law that created rules and law on contracts, point was to have one set of laws to apply everywhere, in every state
