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Mann_Essentials13e_PPT_Ch09.pptxChapter 9
Introduction to Contracts
Chapter 9 Title Slide
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Topics Covered in Chapter 9: Introduction to Contracts
A. Development of the Law of Contracts
B. Definition of a Contract
C. Requirements of a Contract
D. Classification of Contracts
E. Promissory Estoppel
F. Quasi Contracts
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Law of Contracts
Definition of Contract – a binding agreement that the courts will enforce.
Common Law – presented primarily by the Restatement of Contract Law; governs most contracts including contracts involving employment, services, insurance, real property (land and anything attached to it), patents, and copyrights.
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Law of Contracts
Uniform Commercial Code
Article 2 of the UCC governs the sales of goods.
Sale – the transfer of title from seller to buyer.
Goods – tangible personal property (personal property is all property other than an interest in land).
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Definition of a Contract
A contract is a binding agreement that the courts will enforce.
Not all agreements are enforceable.
Most agreements consist of promises by the promisor (offeror) and the offeree (promissee) to do—or not do—something.
A breach is a failure to keep a promise.
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Law Governing Contracts
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Requirements of a Contract
Mutual Assent – manifesting by words or conduct that the parties have agreed to enter into a contract.
Consideration – a mutual exchange of legal benefit or legal detriment as an inducement to the other party to make a return exchange.
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Requirements of a Contract
Legality of Object – the purpose of a contract must not be criminal, tortious, or otherwise against public policy.
Capacity – the parties to a contract must have contractual capacity.
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Requirements of a Contract
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Validity of Agreements
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Classification of Contracts
Express and Implied Contracts
Express Contract – an agreement that is stated in words, either orally or in writing.
Implied in Fact Contract – a contract in which the agreement of the parties is inferred from their conduct.
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Classification of Contracts
Bilateral and Unilateral Contracts
Bilateral Contract – a contract in which both parties exchange promises.
Unilateral Contract – a contract in which only one party makes a promise.
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Classification of Contracts
Valid, Void, Voidable, and Unenforceable Contracts
Valid Contract – one that meets all of the requirements of a binding contract
Void Contract – no contract at all; without legal effect.
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Classification of Contracts
Valid, Void, Voidable, and Unenforceable Contracts.
Voidable Contract – a contract capable of being made void.
Unenforceable Contract – a contract for the breach of which the law provides no remedy.
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Classification of Contracts
Executed and Executory Contracts
Executed Contract – a contract that has been fully performed by all of the parties.
Executory Contract – a contract that has yet to be fully performed.
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Promissory Estoppel
Promissory Estoppel Definition – a doctrine enforcing some noncontractual promises to prevent injustice.
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Promissory Estoppel
Requirements – a promise made under circumstances that should lead the promisor reasonably to expect that the promise would induce the promisee to take definite and substantial action, and the promisee does take such action.
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Quasi Contracts
Quasi Contracts Definition – contract implied-in-law; obligation not based on express or implied promises or conduct.
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Quasi Contracts
Requirements
A court will impose a quasi contract when (1) the plaintiff confers a benefit upon the defendant, (2) the defendant knows or appreciates the benefit, and (3) the defendant's retention of the benefit is inequitable.
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Quasi Contracts
Remedy – the plaintiff recovers the reasonable value of the benefit she conferred upon the defendant.
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