Review Unit 3: Contracts!

Contract (K):legally enforceable (binding) agreement b/w 2 or more parties Basis: where we get contract law o o we get contract law from common law (from the state) unilateral versus bilateral: making the distinction between what the offerer seeks from the offeree allows us to make the distinction b/w the 2; asks: what is it that the offerer seeks from the oferee? how does the offeree accept what the oferrer offers? o o Offeror: the person who approaches another about a contract Offeree: the person who is approached by the offeror Classifications of K (different types of contracts/ agreements)

Bilateral: promise for promise; you agree ahead of time for a performance that comes later o o I promise to do this if you promise to do that ex: John goes to Brad and says I will pay you $100 to wash my car for me. do you agree? o o o o o o o o I promise to pay you $100 to wash my car. Do you agree? the action (car-washing) comes later

We ink the deal now by exchanging promises offeree accepts this contract by agreeing Brad to John: If you wash my car Friday, I will pay you $100 if John does not show up Friday, he didnt breach a contract offeree accepts this contract by doing the performance if performance happens, then offer is agreed on look for if-then statements

Unilateral: Promise for performance

Expressly, implied, or Quasi |How do you create the contract? Expressed: the terms were expressed upfront...either orally or written Implied: instance when you dont formally agree to terms because the terms are implied; our behavior means that we came into an agreement o instances when you formed a contract with someone even though you never formally signed a contract

ex: going to the restaurant- youve agreed to pay even though there isnt a written contract ex: barbershop, using a cab

implied contracts are just as much a contract as are expressly instance when there is no contract, expressly or impliedly, to enforce the court feels the need to correct the unjust enrichment of 1 party @ the expenses of another Court might order a quasi to bring about justice ex: contract that If I paint all 200 house Ill get $100,000. I pay 199 houses and drew wont pay me a dime; court issues contract that forces drew to compensate me for part of the work that Ive done.

Quasi: fake contracts but the law will enforce them none-the-less o o o

Valid, Void, Voidable, Unenforceable- Status Valid contract: a contract that has all the elements are present; enforceable against both parties Void contract: when 1 or more of the elements of the contract are missing o o this contract never existed not enforceable against either party

Voidable contract: a contract that has all the elements but 1 of the individual have the ability to cancel their contract o o 1 party has the option to void their contract w/out penalty problems w/ capacity is usually what creates voidable contracts

Unenforceable agreement: they start of as valid agreements but they are later rendered unenforceable by some operation of the law o o it is when the law changes and makes the contract no longer enforceable ex: John has an agreement w/ Brad to wash a car

-every contract has a statute of limitation