2. Introduction to Contracts Lakeshore Technical College by Richard Opie

3. WHAT IS A CONTRACT? n An AGREEMENT n THAT IS ENFORCEABLE IN COURT

4. PROMISES, PROMISES…. n ALL PROMISES ARE AGREEMENTS??? n ALL PROMISES ARE ENFORCEABLE?? n ALL PROMISES ARE NOT CONTRACTS.

5. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n ONE SIDED PROMISES n AGREEMENTS –offer and acceptance of the offer

6. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n ONE SIDED PROMISES? GIFTS? n CONSIDERATION –SOMETHING OF VALUE

7. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n CHILDREN?? MENTALLY INCAPACITATED? n CAPACITY TO CONTRACT

8. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n PROMISES TO DO SOMETHING ILLEGAL? - GAMBLING, CRIME n LEGALITY –must be for a legal purpose

9. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n PROMISES MADE UNDER PRESSURE OR BECAUSE OF A MISTAKE? n GENUINESS OF ASSENT –WAS THERE REALLY AN AGREEMENT?

10. WHAT TYPE OF PROMISES SHOULD WE ENFORCE? n PROMISES MADE IN VIOLATION OF A FORM REQUIRED BY LAW? n FORM –SOME CONTRACTS MUST BE IN WRITING

11. ELEMENTS OF A VALID (ENFORCEABLE) CONTRACT n 1.AGREEMENT n 2.CONSIDERATION n 3.CAPACITY to CONTRACT n 4.LEGALITY n Other Issues (According to Text) n 5.GENUINE ASSENT n 6.FORM

12. TYPES OF CONTRACTS n EXPRESS n TERMS “discussed” ORAL or Written n IMPLIED n Terms based on actions of parties

13. COMMON LAW OF CONTRACTS n Apply to… n …employment n …services contracts n …sale of land n …insurance, etc.

14. UNIFORM COMMERCIAL CODE n Governs… n …sales (goods – tangible personal property) n …leases of goods n …commercial paper (checks)

15. TYPES OF CONTRACTS n BILATERAL n TWO PROMISES n A Promise for a Promise n UNILATERAL n ONE PROMISE n Acceptance by action of second party

16. TYPES OF CONTRACTS n EXECUTORY n NOT COMPLETED n EXECUTED n All terms completed

17. TYPES OF CONTRACTS n VALID –all elements met “enforceable” n VOID –element not met that makes K unenforceable n VOIDABLE –element not met that gives one party option to “void” K

18. OTHER WAYS TO RECOVER n QUASI CONTRACT –not really a contract but court will enforce/ –EQUITABLE REMEDY –Prevents UNJUST ENRICHMENT –Damages are called “quantum meruit” (You get what you deserve)

19. QUASI CONTRACT n ELEMENTS –Plaintiff gave a benefit to defendant –Plaintiff reasonably expected to be paid and defendant knew this –Defendant “Unjustly enriched” Defendant had the opportunity to decline

20. FOUR WAYS TO RECOVER n EXPRESS K –Promise –Contract –Parties agree on explicit terms n Implied K –No Promise –Contract –Based on intention n Quasi K –No promise –No contract –Unjust enrichment n Promissory Estoppel –Promise –No Contract –Detrimental Reliance on the Promise

21. WHAT TYPES OF AGREEMENT SHOULD WE ENFORCE?