ACCT 324 1st Edition Lecture 4Outline of Last LectureI. Finishing up The U.S. Legal SystemII. Steps in Civil Litigation III. ContractsOutline of Current Lecture I. Implied in Fact vs. Implied in LawII. Classifications of ContractsIII. Interpretation of ContractsIV. Begin Chapter 14 (Case Example to Begin the Chapter)Current LectureI. Implied in Fact vs. Implied in LawIt is important to distinguish Implied in Fact and Implied in Law, the following are two case examples that will help distinguish the two:Implied In Fact - Pase-Aviation Case: Police chief of a volunteer company helped the NY fire department, while helping them he had a heart attack and died. The family wanted the state of NY to pay workers-comp and funeral expenses, and the family won even though the state claimed he wasn’t actually an employee of the state. Because the NY fire department accepted the volunteer’s help on a regular basis so it was an implied contract of employment.Implied In Law – Painter Example: A painter accidentally paints your house when you’re home inside andaware of it, and not your neighbors when they were supposed to paint your neighbor’s house not yours. If taken to court you would have to reimburse the painter for his work because this is an Implied in Law contract. The painter did work on your house that you were fully aware was not supposed to take place AND you had the opportunity to stop the work. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.II. Classifications of Contracts3 types1. Valid – All elements of the contract formation are satisfied2. Void – Illegal purpose/subject matter therefore unenforceable aka the law would not be able to enforce the contract3. Voidable – One or both parties can withdraw from the contractImportant terms when classifying contracts- Executed – All terms of contract fully performed- Executory – some duties under the contract have not been performed by one or both parties (any contract is executory until all parts are fulfilled) - Formal Contract – must meet special form requirements- Informal Contract – No formalities required in making a simple contracti.e. a contract with your landlord, at the end of the day all you do is sign itIII. Interpretation of ContractsPlain Meaning Rule – The court will decide on the case by actually interpreting the contract itselfi.e. Looking at the lease agreement to decide on a dispute between a landlord and a renterIV. Beginning Chapter 14The Andrews Case – Mr. Andrews was given a verbal contract for employment, written follow up was supposed to be sent to him but the hiring party called his old employer and the employer said that Mr. Andrews was a bad employee, so they didn’t give him the job, he sued, state said that he did not have tobe given the job because there was too much left to be discussed, there was no Definite and/or Certain terms of a contract** In this case, the court agreed with the hiring company, they did not have to hire Mr. Andrews becausethere were no definite terms of a contract, too much was up in the air to be made officialDefinite and Certain Terms are required because the court needs something to go off of when a party says “that’s not what we agreed