Ch.9 Types of Contracts

What are the requirements of an implied contract?

1) The plaintiff furnished some service or property 2) The plaintiff expected to be paid for that service or property, and the defendant knew or should have known payment was expected 3) Defendant had chance to reject services or property and did not.

Valid contract

1)has agreement (offer and acceptance) 2) Consideration 3) Contractual Capacity 4) Legal purpose

Informal Contracts (Simple contracts)

All other contracts. No special form is required (except for those that must be in writing) based on substance rather than form.

Express Contract

Contract formed by language of parties (Verbal Agreement)

If contract is fully preformed by one party but not by other

Contract is executed on one side and executory on the other, but still classified as executory

Contract is void

Elements are missing

Valid contracts may be

Enforceable, voidable, or unenforceable

Implied Contract

Formed not by language but by actions (Served at restaurant)

Unilateral Contract

If the offer is phrased so that the offeree can accept the offer only by completing the contract performance. "Promise for act"

Bilateral Contract

If the offeree can accept simply by promising to perform. "Promise for Promise"

Unenforceable Contract

Is one that cannot be enforced because of certain legal defenses against it. Party failed to satisfy a legal requirement of the contract. (Must be in writing, and isn't)

Quasi Contract

Quasi means "Somewhat", not a contract but is treated like it is a contract.

In a unilateral contract, what happens if promisor attempts to revoke offer after promisee has begun but not completed performance?

The present day view, is that offer to form a unilateral contract becomes irrevocable, one performance has begun.

Contracts made by minors, mentally incompetent persons, and intoxicated persons

Voidable Contracts

A unilateral contract is formed

When contract is performed

Can contract be express and implied?

Yes, contract may contain some express terms and some implied terms.

Executed

been fully performed on both sides

Letters of credits

example of formal contract, used in international sales contract, are agreements to pay contingent on the purchasers receipt of invoiced and bill of ladind (Evidence of goods shipped)

Executory Contract

has not been fully performed by parties.

Formal Contracts

require a special form or method of creation to be enforceable.

Voidable contract

valid contract but one that can be avoided at the option of one or both of the parties.

Determines if a contract is bilateral or unilateral

what the offeree must do to accept the offer and bind the offeror to a contract