MGMT 211 Lecture 7 Outline of Current Lecture I Contracts a Expressed Implied Contracts b Conditional Unconditional Contracts c Bilateral Unilateral Contracts d Executed Executory Contracts e Valid Void Voidable Unenforceable Contracts f Elements of a Contract Current Lecture I Chapter 4 Contracts a Expressed Implied Contracts i Expressed Contract written or oral contract 1 Expressed Parties of the contract have discussed and agreed about what they are going to do 2 Everyone knows what is required 3 Some types of contracts have to be in writing it s better because you have written proof of what the parties meant 4 It s not what the parties meant that is the determining factor it is about what a reasonable person in that situation thought it meant reasonable persons standard ii Implied Contract 1 Implied by facts real contract all elements are there some elements are implied by the actions of the parties a The Corps the first haircut you sat down in the barber chair they did what they wanted and told you the price i You got no say so it was understood implied b You go to a fast food restaurant order your food proceeded to the first window and you pay there there is an implication that when you pull up to the second window you will get your food it is understood c If you go eat at Ag Caf when you put food on your tray it s implied that you are going to pay d When you put gas in your car it s implied that you are going to pay 2 It is a real contract enforceable by law iii Quasi Contract 1 Quasi almost not quite something legal is missing 2 One side gets unjust enrichment one side gets the other side to perform calls a technicality and doesn t pay the other side calls it unjust because they did what they were supposed to do 3 Technically if there is no contract you can t make them pay 4 Legal a Swim says he has yard work that needs to be done 29 things he needs the students to do promise to pay each person 100 if it is done by Saturday at 4 00 b You come and do it work yourself and get it done stand in line to get your money Swim asks to see your permit you don t have one made up ordinance Brazos County requires you to have a work permit to do any kind of work so Swim won t pay c He would be legally right to refuse funds but not ethically d You turned the yard around i Go and throw yourself at the mercy of the court 1 Small Claims Justice of the Peace ii Go into court iii don t say you re stupid because 1st rule is that courts will not bail you out of a dumb deal iv Ignorance of the law is no excuse v Judge could tell you to leave court that you ve learned your lesson vi Or Judge could tell Swim to pay up Judge can pretend you have the permit and make Swim pay you 1 Implied by law law being the judge 2 Judge can create a contract that is otherwise not legally enforceable 3 He could just as easily throw you out of their court vii This is a fallback method not something to rely on viii If Swim had done this in the past he would probably have to pay unjust enrichment b Conditional Unconditional contracts i Most are unconditional once you sign you are obligated to do it ii Conditional could depend on something occurring something that could give rise to or stop your obligation in the contract 1 Condition subsequent stated in the contract and says when this occurs the contract is over a Brick company you tell the sand company that you need a sand truck every day until the job is complete you tell them on a particular day that you will be done therefore the contract is over 2 Condition precedent has to occur before your obligation to contract arises if it never occurs you re out of contract a Say that you inherit a lake lot you want to put a boat house and a boat lift you call an architect and take the plan to a construction company and it s expensive they tell you to build your own dock to save money it s not hard enter into contract saying after you ve finished the boat dock 20 feet deep they will start the boat house within 30 days if you never get it done they never have the duty to build your house 3 Condition concurrent you don t have to perform until I perform stated in the contract a House closing both the buyers and sellers have a huge stack of papers to sign buyer has to put certified funds to pay for the house then they will get the keys if they don t pay seller doesn t have to hand over keys or sign the deed to give the house to you c Bilateral Unilateral Contract i Basic building blocks of a contract legally enforceable promises ii Bilateral mutual exchange of legally enforceable promises 1 Swim will pay 100 for you to do the 29 things on the list you respond by saying you ll do it for the 100 mutual exchange 2 If you re supposed to have it done by 5 on Friday and you haven t shown up by 4 in one hour you will be in breach of contract if you don t finish by 5 you will be in breach of contract iii Unilateral 1 Swim wants all 29 things done by 7pm on Saturday for 10 and you turn it down you go out and get arrested and decide that you need someone on your side you go out and do the 29 things and Swim is watching you if Swim lets you do it he owes you the 10 2 Halfway through the day you can leave if you get frustrated with all the work a You didn t promise Swim anything 3 Tie a rope between Wehner and the Hort building Swim will pay you 50 if you walk all the way across it on your hand a Swim only pays you if you get it done b Majority of states Unilateral requires total performance c Prior to total performance you can withdraw the offer i You get 2 feet away from the Hort building and Swim can call it off won t owe you anything ii You get to the 29th thing on the list and Swim can tell you he doesn t need you to do anything you don t get paid d Minority of states Not Texas If you do a substantial amount of work you are allowed to finish or be paid for the work you ve done 4 You cannot be sued if you don t complete the work you never agreed to do it 5 If you complete the work and don t get …