Chapter 9

Executed contract

A completed contract that has been fully performed on both sides

Legally enforceable contract

A contract in which if one party fails to perform as promised, the other party can use the court system to enforce the contracts and recover damages or other remedy.

Voidable contract

A contract in which one or both parties have the option to void their contractual obligations. If it's voided, both parties are released from their contractual obligations. M-rated games are voidable to the minor or the person under the duress

Executory contract

A contract that has not been performed by both sides.

Unenforceable contract

A contract where the essential elements to create a VALID contract are met but there is some legal defense to the enforcement of the contract. Eg) if the contract is required to be in writing by a certain statue. But you can voluntarily perform a contract such as this.

Equity

A doctrine that permits judges to make decisions based on fairness, equity, moral rights, and natural law. "The harm to the lessor is slight, & the hardship to the lessee is severe."

The common law of contracts

A major source of contract law. Developed from early court decisions that became precedent for later cases. Most have been developed from state court decisions.

Bilateral Contract

A promise for a promise. Eg) IF your promise to paint my house, I will pay you $3000. Party REPLIES, "I promise to do so"

Consideration

A promise must be supported by a bargained-for consideration such as money, personal property, services

Uniform Commercial Code (UCC)

A uniform system of commercial law, us usually takes precedence over common law of contracts- JUST OVER SALE & LEASES OF GOODS

Informal/Simple Contracts

All contracts that do not qualify as formal contracts. They are fully enforceable and may be sued if breached upon. The majority of contracts entered into by individuals and businesses. ignore!!!

Quasi-Contract (implied-in-law contract)

Allows a court to award monetary damages to a plaintiff even though no actual contract existed. Where: 1) one person confers another benefit on another who retains the benefit 2) it would be unjust not to require the person to pay for the benefit received. Eg) getting hospital work done while unconscious and then getting billed for it.

Express Contract

An agreement that is expressed in written or oral words. Most business and personal contracts are express contracts.

In a unilateral contract when can the offeror pull out?

Anytime BEFORE the offeree starts on the performance of the requested act.

If there is any ambiguity as to whether a contract is bilateral or unilateral, it is assumed to be

Bilateral

Restatement of the Law of contracts

Comprised by law professors, judges and lawyers. Not law but lawyers and judges refer to it for guidance in contract disputes

Formal Contracts

Contracts that require a special form or method of creation. ?Will we need to know the different types? pg179 ignore!!!!!

UCITA

Establishes legal rules for the formation and enforcement of electronic contracts and licenses. A model that does not become law until states adopt it.

Wrench LLC v. Taco Bell Corp.

The court ruled that there was enough material evidence to show that an implied contract existed between the design group and TB. IMPLIED-IN FACT

Lawful object

The object of a contract must be lawful, if not, the contract is void.

No contract is created if

The offer is not accepted by the offeree

Offeree

The party to whom the offer is made

Offeror

The party who makes an offer to enter into a contract

Contractual Capacity

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E-commerce

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Electronic contract

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Electronic licenses

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Two defenses may be raised to the enforcement of contracts:

1) Genuineness of assent: if consent is obtained by undue influence, fraud or threats/violence then the contract is void. 2) Writing & Form

For a contract to be enforceable, the following four basic requirements must be met:

1) agreement 2) consideration 3) contractual capacity 4) lawful object

Valid contract meets the 4 essential elements to establish a contract:

1) consists of an agreement between the parties 2) is supported by legal consideration 3) is between parties with contractual capacity 4) accomplishes a lawful object

Implied-in-fact contract use have the following 3 elements:

1) the plaintiff provided property or services to the defendant. 2) the plaintiff expected to be paid by the defendant for the property of services (he didn't provide the property/services gratuitously) 3.) the defendant was given an opportunity to reject the property or services provided by the plaintiff but did not do so.

Void Contract

Has no legal effect. Such as a contract to commit a crime. Neither party is obligated to perform and either party is ineligible to enforce the contract.

Agreement

Mutual assent by the parties

Contract law places contracts in the following 4 categories:

Valid, Void, Voidable & Unenforceable

Unilateral contract

When the offeror's contract can only be accepted by the performance of an act by the offeree. Eg) If you paint my shop, I will pay you $3000

Objective theory of contracts

Would the reasonable person conclude that the parties intended to create a contract after considering: (1) the words and conduct of the parties (2) the surrounding circumstances * contracts made in anger, excitement or joking are invalid * the subjective intent of a party to enter into a contract is relevant