Introduction to Contracts - Mercantile or Business Law - Lecture Slides, Slides of Commercial Law

Download Introduction to Contracts - Mercantile or Business Law - Lecture Slides and more Slides Commercial Law in PDF only on Docsity! Business Law Chapter 8 Introduction to Contracts Docsity.com Objectives • Define the objective theory of contracts • List the basic requirements of a contract • Contrast express and implied contracts Docsity.com Contracts • An agreement that can be enforced in a court • Two or more parties • Agree to perform or refrain from performing some act now or in the future Docsity.com Contracts • Each party has a legal duty to the other and also the right to seek a remedy for the breach of the promise or duty • Element of intent is of prime importance Docsity.com Objective Theory of Contracts • The view that contracting parties shall only be bound by terms that can objectively be inferred from promises made. – What the party said – How the party acted or appeared – The circumstances surrounding the transaction Docsity.com Unilateral Contracts • Offers are normally revocable until accepted • Problem if offeror attempts to revoke the offer after performance has begun • Offer becomes irrevocable after performance has begun Docsity.com Express vs. Implied • Express – contract in which the terms are fully and explicitly stated in words, oral or written • Implied-in-fact – contract formed in whole or in part from the conduct of the parties Docsity.com Implied-in-Fact • Party furnished some goods or services • Party furnishing goods or services expected to be paid, and the party to whom the goods or services were provided knew, or should have known, that payment was expected • Party to whom goods or services were provided had a chance to reject them and did not Docsity.com Executed vs. Executory • Executed – fully performed on both sides • Executory – has not been fully performed on either side, or fully performed on one side and not the other Docsity.com Valid Contract • A properly constituted contract having legal strength or force • Offer and acceptance, consideration, legal purpose, and legal capacity Docsity.com Void Contract • No contract at all • No legal force or binding effect Docsity.com