Chapter 9 Into To Contracts I The Nature of Contracts a Functions of a Contract II Contract Concepts and Types a Bilateral and Unilateral Contracts i Give us the ability ti enter into agreements with others with confidence that we may call on the law not merley the good faith of the other party to make sure agreement will be honored ii Facilitate planning that is necessary in industrialized society 1 knowing someone will do what is agreed upon b Evolution of Contract Law c Methods of Contracting i Can be written or spoken ii Standardized Form Contracts one party and presented to the other partyfor signing are contracts that are preprinted by 1 terms and conditions d Elements of a Contract i A set of promises must be 1 based on voluntary agreement 2 made up of offer and acceptance 3 consideration to support each parties promise 4 parties need capacity to contract 5 contract must be legal i Unilateral 1 frequent buyer cards only on party makes a promise ii Bilateral formed as soon as the promises are exchanged both parties exchange promises and the contract is one that meets all the legal requirements for a binding one or more of the parties have the legal right to one that meets the baseic legal requiremtns for a b Valid Contract e Void Contracts d Voidable Contracts c Unenforcable Contract contract Thus enforceable in court contract but may not be enforceable for some legal reason cancel their obligations under the contract given or in writing at the same time the contract was formed Implied Contracts g h Executed Contracts duties i Executory until such duties have been performed f Express Contracts parties have directly stated the terms of contract orally surronding facts and circimstances have been reached all parties have fully performed their contractural create no legal obligation and for which no remedy will be III Sources of Law Governing Contracts a Uniform Commercial Code UCC i Establishes a uniform set of rules to govern commercial transactions which are often conducted across state lines ii Only applies to sale of goods 1 no real eststae 2 no services 3 no non tangible goods stock a b bonds iii holds merchants to a higher standard since they have more a Some instances the law forces one to pay for the loss of benefit even if IV Non Contract Obligations knowledge there is no contract b Quasi Contract i Requiring all the elements of a contract before contractural obligations is imposed can cause injustices in some cases 1 John paints Bill house by mistake Bill knows this but does not stop John to get paining for free 2 exaggerating figures and acting to purchase based on this ii Benefited party to pay for a reasonable value of the benefit c Promissory Estoppel one person relies on a promise made by another ecen though the promise and surrounding circumstances are not sufficient to justify the conclusion that a contract has been created because one or more elements are missing V CHART on 303 i Protects reliance
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