BCOR 3000 1st Edition Lecture 10 Outline of Last Lecture i Negligence Issues ii Strict Liability iii Online Defamation iv What is a Contract v Contract Law Sources vi Contract Freedoms vii Lucy v Zehmer Case viii Contract Basic Requisition Outline of Current Lecture I Contract Parties II Contract Characteristics III Bilateral vs Unilateral IV Examples of Bilateral and Unilateral Contracts V The Importance of FORM VI Classifications Formal vs Informal VII Quasi Contracts VIII Contract Interpretation IX Oral Contracts Current Lecture Contract Parties ors do it to ees Offeror Makes the offer to the offeree 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 Offeree One who receives an offer and can then accept reject or ignore In law an or usually does something to an ee E g offeror makes offer to offeree Contract Characteristics Bilateral v Unilateral Addresses how the contract is formed What does offeror seek from offeree in order to FORM the contract FORM with every contract there is action Do I want the action to be the formation or do I want the promise to be the formation of the contract and take action later Affects when contract comes into existence Bilateral vs Unilateral Bilateral Seeks a promise from the offeree and then an action 2 steps to FORM contract If you ll promise to repair my car I ll pay you 350 00 Comes into existence with an exchange of promises Unilateral Seeks action only 1 step to FORM contract I don t care if you do it or not but if you shovel my driveway today I ll pay you 25 Comes into existence with an exchange of action no promises Most business contracts are which Bilateral B c businesses do not want to wonder business want certainty and decision Unilateral Examples Rewards Returning Fifi your dog if got lost Car dealership promotion in ad If the last 3 numbers of your SS match the last three numbers of the VIN we ll give you 100 What is this Unilateral Contract Must the dealership pay you if you match the s yes they entered into a contract Bilateral v Unilateral When a Contract is Formed Bilateral Contract is formed upon the return promise Once formed both obligated Unilateral Contract is not formed until the action is done No obligation till act is done Once done the offeror is obligated When does difference matter it matters upon the return promise b c the bind both people into a bilateral only an action with unilateral binds a contract Classifications Formal v Informal Checks with Pay to the order of are formal must be in a particular form Informal not required to be in any certain form most contracts are done this way Express Created by words Can be oral or written Most are created this way Implied in fact Based on conduct and reasonable expectations fact is based on ACTions Restaurant Ex Asked if patron wanted a drink and said yes Although you did not promise to pay you are still required to pay Self serve gasoline Ready to eat food at grocery store Other Characteristics Executed v executory Based on timing Executory anything left undone executory until everything is done Executed every obligation has been performed Void v Voidable Void a void check is not a check Voidable Void able One can make it void Specific circumstance where someone can choose to make a decision to make a contract void Unenforceable Contract the court says there is a contract but we won t do anything Void v unenforceable the main point is that the court won t do anything Quasi Contract No contract but the court implies one i e treats situation as if there were a contract Aka Implied in law contract Based on preventing unjust enrichment Ex Are you my gf No she is my quasi gf a sort a kind of contract that is still applied by courts Ex Ambulance no in a formal contract but will still have to pay for the ride Ex Taking advantage of some else s mistake Best Buy drops off TV at wrong address So you take it in your home and set it up Get a call from best Buy that they made a mistake Best Buy comes and gets it Not required to pay Ex Server brings our wrong food item and you eat it anyways must still pay for it Contract Interpretation A law question judge decides Question of Fact v Law If law Judge will decide Plain meaning rule Starting point Ex Contract where company sells you a car 4 wheels and 1 steering wheel Specific terms qualify general terms specific prevision cats are okay will trump the general prohibition against pets Handwritten or typed controls over pre printed supposedly print out last year s lease to renew change dates rent increases by hand written scratch out and re write this will trump the typed contract Ambiguities against the drafter If the contract is unclear it will be decided in the favor of the person who did not write the contract b c unclear with off raod and on road capabilities in contract dealership lsot Words control over numbers Words will control win over numbers mistakes are more promineant when writing numbers ex 50 000 versus 500 000 Words advance princ Object certain words are specific to certain things within a contract Oral Contracts Most oral contract are legally valid and enforceable Oral contracts are hard to prove in court It will be difficult to enforce But you can be dragged into court by the other party will be hard to prove but can go to court Enforceable but beware Generally get it in writing Do not make the mistake that b c it is not in writing that you cannot be sued