CONTRACTS

1
CONTRACTS

• Chapter 9
• Introduction to Contracts

2
CONTRACTS

• A AGREEMENT between two or more persons the
  PERFORMANCE of which the law considers to be an
  OBLIGATION and for the breach of which the law
  will impose a REMEDY.
• Reflects social values

3
Two Bodies of Contract Law

• Uniform Commercial Code
• Sale of goods (tangible personal property)
• Common Law
• Contracts not covered by the UCC
• ( Services, real estate, employment, insurance,
  etc.)

4
Basic Elements of a Contract

• Offer
• Acceptance
• Consideration
• Capacity
• Legality

5
TYPES OF CONTRACTS

• Bilateral Promise for a promise
• Unilateral Promise for an action
• Express Terms are explicitly stated in words.
• (Oral or written)
• Implied Terms indicated by conduct of the
  parties.

6
Types of Contracts

• Valid Contains all of the necessary
  elements of a contract.
• Void Missing one or more of the necessary
  elements for a valid contract.
• Voidable Valid contract which may be avoided by
  one or both parties by an action of rescission

7
Types of Contracts

• Executed Fully performed by both parties.
• Executory Not fully performed.

8
Quasi Contract

• Implied in law contract.
• Benefit conveyed
• Receiver of benefit is aware of benefit
• Unjust to allow benefit to be retained without
  payment.

9
Promissory Estoppel

• A promise which the promisor should reasonably
  expect to induce action or forbearance on the
  part of a third person and which does induce such
  action or forbearance is binding if injustice can
  be avoided only be enforcement of the promise