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| an agreement that is enforceable by a court of law or equity. |
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| Without enforceable ______________, commerce would collapse. |
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| The terms of the contract become ____________ between the parties. |
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| Legally Enforceable Contract |
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| If one party fails to perform as promised, the other party can use te court system to enforce the contract and recover damages or other property. |
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| Every contract involves at least 2 parties: |
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-Offeror: the party who makes an offer to enter into a contract.
-Offeree: the party to whom an offer to enter into a contract is made. |
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| To be an enforceable contract, 4 basic requirements must be met: |
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Agreement
Lawful Object
Consideration
Contractual Capacity |
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| This requires an offer but the offeror and an acceptance by the offeree. There must be mutual assent by the parties. |
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| The promise must be supported by a bargained-for consideration that is legally sufficient. Gift promises and moral obligations are not considered supported by valid consideration. |
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The parties to a contract must have contrapuntal capacity.
Certain parties, such as persons adjudged to be insane, do not have contractual capacity. |
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| The object of the contract must be lawful. Contracts to accomplish illegal objects or contracts that are against public policy are void. |
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| Defenses to the Enforcement of a contract are: |
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| Genuineness of Assent & Writing and Form |
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| The consent of the parties to create a contract must be genuine. There is no real consent if the consent is obtained by duress, undue influnce, and fraud. |
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| the law requires that certain contracts be in writing or in a certain form. Failure of this may be raised against the enforcement of the contract. |
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-The common law of contracts: contract law developed primarily by state courts.
-The uniform commercial code (UCC): comprehensive statutory scheme that includes laws that cover aspects of commercial transactions. |
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| An agreement that is expressed in written or oral words. |
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| A contract entered into by way f exchange of promises of the parties. "A promise for a promise." |
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| A contract in which the offeror's offer can be accepted only by the performance of an act by the offeree. "A promise for an act." |
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| a contract where agreement between parties has been inferred from their conduct. |
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| Implied-in-law contracts/Quasi-Contracts |
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| Allows a court to award monetary dmages to a plaintiff for providing work or services to a defendant even though no actual contract existed between parties. |
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| contracts that require a special form or method of creation. ie: contracts under seal, negotiable instruments and letters of credit. |
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| no special form or method is required for their creation. Fully enforceable and may be sued upon if breached. ie: leases, sales contracts, and service contracts. |
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| contract that meets all the essential elements to establish a contract. Enforceable by at least one of the parties. |
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| a contract that has no legal effect. Neither party is obligated to perform. Neither party con enforce the contract. |
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| contract where one or both parties have the option to avoid their contractual obligations. If a contract is avoided, both parties are released from theor contractual obligations. |
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| a contract where the essential elements to create valid contract are met. However, there is some legal defense to the enforcement of the contract. |
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| a contract that has been fully performed on both sides. A completed contract. |
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| A contract that has not been fully performed by either or both sides. |
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| A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law. |
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