Slide 1Overview of Contract LawOverview of Contract LawExhibit 9.1 ClassificationTypes of ContractsTypes of ContractsTypes of ContractsTypes of ContractsExhibit 9.2Quasi-ContractsQuasi-ContractsElements of a ContractElements of a ContractELEMENT #1:AgreementAgreement: IntentionAgreement: IntentionAgreement: DefinitenessAgreement: CommunicationAgreementAgreementAgreementAgreement: AcceptanceAgreement: AcceptanceAgreement: AcceptanceAgreement: AcceptanceE-ContractsELEMENT #2: ConsiderationConsiderationE-ContractsConsiderationConsiderationConsiderationConsiderationConsiderationConsiderationConsiderationConsiderationPromissory EstoppelPromissory EstoppelELEMENT #3: Contractual CapacityContractual CapacityContractual CapacityContractual CapacityContractual CapacityContractual CapacityContractual CapacityContractual CapacityContractual CapacityELEMENT #4: LegalityLegalityLegalityLegalityLegalityThe Effect of IllegalityThe Effect of IllegalityThe Effect of IllegalityInterpretation of ContractsInterpretation of ContractsInterpretation of ContractsInterpretation of ContractsInterpretation of ContractsCHAPTER 12 Voluntary ConsentVoluntary ConsentVoluntary ConsentExhibit 12.1 Mistakes of FactFraudulent MisrepresentationFraudulent MisrepresentationUndue InfluenceDuressStatute of Frauds—Writing RequirementStatute of Frauds—Writing RequirementStatute of Frauds—Sufficiency of the WritingThe Parol Evidence RuleParol Evidence Rule--ExceptionsDISCHARGEContract DischargeREMEDIESDamagesDamagesDamagesDamagesEquitable RemediesEquitable RemediesCHAPTER 16: THIRD PARTY RIGHTS© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.Business Law Today 10th Ed.Text and Summarized CasesDiverse, Ethical, Online and Global EnvironmentRoger LeRoy MillerGaylord JentzChapter 9-16: Contracts(nuno/iStockphoto.com© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.2OVERVIEW OF CONTRACT LAW•Sources of Contract Law.Common Law for all contracts except sales and leases.Sale and lease contracts - Uniform Commercial Code (UCC).•The Function of Contracts.Provides stability and predictability for commerce.2© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.3OVERVIEW OF CONTRACT LAW Definition of a Contract. Promise or set of promises, for breach of which, the law provides a remedy, or the performance of which the law in some way recognizes as a duty.3© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.4EXHIBIT 9.1 CLASSIFICATION4© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.TYPES OF CONTRACTS5•Contract Formation.Bilateral - Offeree must only promise to perform (“promise for a promise”).Unilateral - Offeree can accept the offer only by completing the contract performance (“a promise for an act”).5© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.TYPES OF CONTRACTS6•Contract Formation.Formal versus Informal Contracts.•Formal: must be in writing to be enforceable. •Informal: all other contracts.6© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.TYPES OF CONTRACTS7•Contract Formation.Express: Words (oral or written).Implied (In Fact): Conduct creates and defines the terms of the contract. Requirements:•PL furnished good or service•PL expected to be paid•DEF had chance to reject and did not.7© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.TYPES OF CONTRACTS8•Contract Enforceability.Valid: agreement, consideration, contractual capacity, and legality.Void: no contract.Voidable (unenforceable).Valid contract can be avoided or rescinded based on certain legal defenses.8© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.EXHIBIT 9.2 99© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.QUASI-CONTRACTS10•Quasi Contracts are implied in law. Equitable remedy created by courts, and imposed on parties in the interest of fairness and justice. Quantum Meruit: extent of compensation. 10© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for