Review

- Unit 3: Contracts!

Contract (K):legally enforceable (binding) agreement b/w 2 or more parties

Basis: where we get contract law

o we get contract law from common law (from the state)

Classifications of K (different types of contracts/ agreements)

o unilateral versus bilateral : making the distinction between what the offerer seeks from the offeree allows us to make the distinction b/w the 2; asks: what is it that the offerer seeks from the oferee? how does the offeree accept what the oferrer offers?

o Offeror: the person who approaches another about a contract

o Offeree: the person who is approached by the offeror

Bilateral: promise for promise; you agree ahead of time for a performance that comes later

o I promise to do this if you promise to do that

o ex: John goes to Brad and says “I will pay you $100 to wash my car for me”. do you agree?”

“I promise to pay you $100 to wash my car. Do you agree?”

o “We ink the deal now by exchanging promises”

the action (car-washing) comes later

o offeree accepts this contract by “agreeing”

Unilateral: Promise for performance

o Brad to John: “If you wash my car Friday, I will pay you $100”

o if John does not show up Friday, he didn’t breach a contract

o offeree accepts this contract by doing the performance

o if performance happens, then offer is agreed on

o look for “if-then statements”

o Expressly, implied, or Quasi |How do you create the contract?

Expressed: the terms were expressed upfront...either orally or written

Implied: instance when you don’t formally agree to terms because the terms are implied; our “behavior” means that we came into an agreement

o instances when you formed a contract with someone even though you never formally signed a contract

ex: going to the restaurant- you’ve agreed to pay even though there isn’t a written contract

ex: barbershop, using a cab

o implied contracts are just as much a contract as are expressly

Quasi: “fake” contracts but the law will enforce them none-the-less

o instance when there is no contract, expressly or impliedly, to enforce

o the court feels the need to correct the unjust enrichment of 1 party @ the expenses of another

o Court might order a quasi to bring about justice

ex: contract that If I paint all 200 house I’ll get $100,000. I pay 199 houses and drew won’t pay me a dime; court issues contract that forces drew to compensate me for part of the work that I’ve done.

o Valid, Void, Voidable, Unenforceable- Status

Valid contract: a contract that has all the elements are present; enforceable against both parties

Void contract: when 1 or more of the elements of the contract are missing

o this contract never existed

o not enforceable against either party

Voidable contract: a contract that has all the elements but 1 of the individual have the ability to cancel their contract

o 1 party has the option to void their contract w/out penalty

o problems w/ capacity is usually what creates voidable contracts

Unenforceable agreement: they start of as valid agreements but they are later rendered unenforceable by some operation of the law

o it is when the law changes and makes the contract no longer enforceable

o ex: John has an agreement w/ Brad to wash a car

-every contract has a statute of limitation