Understanding Contracts: Types, Elements, and Legal Sources, Slides of Law

Download Understanding Contracts: Types, Elements, and Legal Sources and more Slides Law in PDF only on Docsity! J/ntroduction iS Conifacts Quote of the Day “The whole duty of government is to prevent crime and to preserve contracts.” Lord Melbourne, British Prime Minister docsity.com Contracts • Definition – A promise that the law will enforce. • Development of Contract Law – Common law once required all contracts to be in writing, with a seal affixed. – Later, some payment was required before a contract could be enforced. – Mutual promises became enforceable in the 1600’s. – By the 1900’s, courts began to consider the fairness of contracts before enforcing them. docsity.com Types of Contracts (or Agreements) • Bilateral and Unilateral Contracts – Bilateral: both parties make a promise. – Unilateral: one party makes a promise that the other party can accept only by doing something. Bilateral vs. Unilateral Express vs. Implied Executory vs. Executed Valid vs. Unenforceable vs. Voidable vs. Void docsity.com Types of Contracts (cont’d) • Express and Implied Contracts – Express: the two parties explicitly state all important terms of their agreement. – Implied: the words and conduct indicate that the parties intended an agreement. • Executory and Executed Contracts – Executory: when one or more parties has not fulfilled its obligations. – Executed: when all parties have fulfilled their obligations. docsity.com Quasi-contract • Even when there is no contract, a court may use quasi-contract to compensate a plaintiff who can show that: – He gave some benefit to the defendant. – He reasonably expected to be paid for the benefit and the defendant knew this; and – The defendant would be unjustly enriched if she did not pay. • The damages awarded are called quantum meruit, meaning that the plaintiff gets “as much as he deserved.” docsity.com Sources of Contract Law • Common Law • Uniform Commercial Code – UCC Article 2 governs the sale of goods. “Goods” means anything moveable, except for money, securities, and certain legal rights. – In a mixed contract, Article 2 governs only if the primary purpose was the sale of goods. • Restatement (Second) of Contracts docsity.com “If you understand the contract issues that courts scrutinize, the agreement you draft is likelier to be enforced. You thus achieve greater control over your affairs -- the very purpose of a contract.” docsity.com