chapter 13

samantha is looking to make a formal contract with her neighbor for her babysitting services. samantha could create a contract in each of the following manners except

a simple contract

implied contracts

arise from the conduct of the parties (going to the hairdresser example)

recognizance

arises when a person acknowledges in court that he or she will perform some specified act or pay a price upon failure to do so

express contracts

clearly set forth in either written or spoken words

four types of formal contracts

contracts under seal, recognizances, letters of credit, negotiable instruments

which of the following is a contract that arises from the conduct of parties rather than their words?

implied

quasi contracts (implied in law contracts)

these are not actually contracts. rather, in order to prevent one party from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if that party had entered into a contract

negotiable instruments

unconditional written promises to pay the holder a specific sum of money on demand or at a certain time

a BLANK contract is a contract where either one or both parties has the ability to either withdraw from or enforce the contract

voidable

Uniform Commercial Code

A collection of laws that governs various types of business transactions. all contracts are governed by either common law or the UCC

classification of contracts

Bilateral or Unilateral, Expressed or Implied, Valid or Void or Voidable or Unenforceable, Executed or Executory

4 elements of a contract

agreement, consideration, capacity, legality

letter of credit

an agreement by the issuer to pay another party a sum of money on receipt of an invoice and other documents

two sources of contract law

common law and uniform commercial code

requirements of an enforceable contract

must meet all 4 elements, must have genuine assent (each party must have freely entered contract through proper means), and it must be in proper form

bilateral contract

promise + promise

unilateral contract

promise + requested action

covenant not to compete

restrict what an employee may do after leaving a company, and they often dictate where, when, and with whom an employee may work

which of the following is not true of the law of contracts

the law of contracts serves at statutory law

which of the following is not a possible defense to a contract?

the offeree lost his job and can't pay anymore