12. Types of Contracts

4. Voidable Contracts

Contracts can be voided - but they can also be valid if the other party allows it (the party where the formation or capacity is in doubt) - One side has a choice of whether to honor the contract

3. Void Contracts

Subject matter is illegal - ex. contract to hire someone to kill your spouse Formation issues (physical only) - physically forcing someone to sign a contract (like in mafia movies)

2 Directions of Contract

1. Bilateral 2. Unilateral - the other party is not bound until they start the action (as opposed to bilateral, as soon as the contract is signed the other party is bound) - The act of acceptance is the act of performing the contract, which is what would be a unilateral contract

Other Types of Contracts (5 types)

1. Executed vs. Executory 2. Valid contracts 3. Void 4. Voidable 5. Unenforceable

3 Types of Contracts

1. Express Contracts - express written (actually written down) - express oral (talked about verbally) 2. Implied or implied-in-fact contracts - no formal agreement in place (just a mutual understanding type deal that is implied) - ex. you don't sign a contract when you go into a doctor's office for treatment 3. Quasi-contracts - A contract imposed by the courts or by law when some performance has gone forward, even though there is no express or implied contract. - The law creates a quasi-contract for the parties in circumstances in which the failure to find a quasi- or implied-in-law contract would result in unjust enrichment of one party by the other.

MC Tips

1. This a contract for payment of a bribe as well as public corruption. Despite the written agreement, the courts would not enforce the agreement because it violates public policy. - if someone paid someone else to leave the election 2. It is the minor's choice whether to honor the contract or disaffirm it any time prior to his or her 18th birthday and for a reasonable time thereafter. - contracts with minors 3. When one party has been declared incompetent by a court, neither side can enforce the contract and the courts do not honor it. - ex. if someone has a guardian appointed for them, they are likely incompetent 4. (SS) 5. By going to the doctor, you have an implicit agreement to pay. - implied contract 6. A unilateral contract is a promise in exchange for performance. - One side does not make a promise to perform, but if that side does complete the performance then the promising party is bound and must pay whatever was offered. Once performance is complete, the promise must be fulfilled. 7. Since the tires are the major part of the cost in the contract, the contract would be under UCC Article 2. - ex. a contract for the purchase and installation of 4 tires for a car