1. Enforcing Contracts
Business Law

2. Last Class… Identify the six elements of a contract.
Explain the effects of a contract on a minor.
Identify types of contracts.
Analyze the need for contracts.

3. Today’s Lesson Objective Essential Questions
We will explain the effects of a breach of contract.
What is a breach?
What enforcements are in place if a party breaches a contract?

4. Breach

5. Breaching a Contract
If one party does not follow through with consideration in a contract, the other party doesn’t have to perform.
Failure to perform is called a breach.

6. What happens when one party breaches a contract?
Thinker Question!

7. Enforcement
Damages the party who is harmed can request money (equal to the amount lost from the breach) from the other party
Specific Performance if it is still possible to perform the contract, the court can require the party to perform

8. Sam burned his hand on the stove
Sam burned his hand on the stove. The burn was so bad that it permanently scarred his hand and made it difficult to grip things. A doctor told him that he could fix his hand with a simple “skin-grafting” procedure for $1200. After the surgery, Sam’s hand worked perfectly… but, he started growing hair out of the palm of his hand. He tried waxing it, but he couldn’t stop the hair from growing back. He decides to sue the doctor for giving him a hairy hand.
Did the doctor breach the contract? Should the court do something about it? If so, what should the court do?

9. Today’s Lesson Objective Essential Questions
We will identify defenses to contracts in order to determine if a contract could be voided.
What must be present for a valid contract to exist?
What defenses to contracts are recognized by law?

10. Defenses to Contracts
Certain things can make contracts void, even though both parties agreed on the terms and there was valid consideration.

11. Unconscionability
If one party tricked another party into agreeing to an unfair contract, the court may not enforce it.
Example: businesses who try to trick poor or uneducated clients

12. Fraud or Duress Lying or misrepresenting something in negotiations
Taking advantage of someone in a bad situation