The Legal Status and Classification of Contracts

Question 1

Define a contract

Answer 1

A contract is an agreement b/t 2 or more parties who, in a “meeting of the minds”, have pledged to perform or refrain fro performing some act

Question 2

What is a valid contract?

Answer 2

One that is legally enforceable by virtue of meeting certain requirements of contract law

Question 3

A court may construe the legal status of a contract in one of four ways:

Answer 3

• Valid
• Valid but unenforceable
• Void
• Voidable

Question 4

Contracts may be classified as being: Oral (parol) or written. Explain

Answer 4

Some contracts are enforceable only if in writing

Question 5

Contracts may be classified as being: Express or Implied. Explain

Answer 5

Terms and covenants of the agreement have been clearly stated vs implied

Question 6

Contracts may be classified as being: Bilateral or Unilateral. Explain

Answer 6

Either both parties promise to perform their respective parts of an agreement in exchange for performance by the other party (bilateral), or only one party promises to do something, provided the other party does something (unilateral)

Question 7

Contracts may be classified as being: Executed or Executory. Explain

Answer 7

The contract has been fully performed and fulfilled, or performance has yet to be completed