Business Law 9

a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes as a duty

party who makes an offer to enter into a contract is the offerer, to whom the offer is made, the offeree

• agreement
• consideration
• contractual capacity
• lawful object

• genuineness of assent
• writing and form

offers goods to buyers on take it or leave it basis, majority of contracts in US are made this way

• common law of contracts
• uniform commercial code
• restatement of the law contracts

developed from early court decisions that became precedent for later decisions. majority of common law has been developed from state court decisions

creates a uniform system of commercial law among the 50 states and normally takes precedence over the common law of contracts

document is advisory only; it is not a law

according to this theory; parties were free to negotiate contract terms without government interference.

according to this theory; parties may negotiate contract terms subject to government regulations.

• bilateral and unilateral contracts
• express and implied in fact contracts
• quasi-contracts (implied in law)
• formal and informal contracts
• valid, void, voidable, and unenforcable contracts
• executed and executory contracts

promise for a promise

promise for an act

is a contract espressed in oral or written words

contract implied from the conduct of the parties

implied by law to prevent unjust enrichment and unjust detriment

requires special form or method for creation

requires no special form or method for creation

meets all the essential elements to establish a contract

no contract exists

where one or both the parties have the option of avoiding or enforcing the contract

cannot be enforced because of a legal defense

a contract fully performed on both sides

contract that is not fully performed by one or both the parties

doctrine that permits judges to make decisions based on fairness,equality, moral rights, and natural law.

if a party fails to perform a contract, the other party may call upon the courts to enforce the contract

consent of parties must be genuine; not obtained by duress, undue influence, or fruad

law requires certain contracts in writing or in certain form; failure may be raised against enforcement of contract

• negotiable insturments (checks, drafts, notes)
• letters of credit (agreement to pay a sum of money)
• recognizances (bail bond; pay if event occurs)
• contracts under seal (wax sealed)