1. Chapter 10
Elements of a Contract

2. *Some contracts are VALID but UNENFORCEABLE.
CERTAIN TYPES OF ORAL CONTRACTS
IN EARLY ENGLAND, ALL CONTRACTS COULD BE ORAL; THEY DID NOT HAVE TO BE WRITTEN TO BE FULLY ENFORCEABLE

3. Breach of contract- WRONGFUL FAILURE TO PERFORM ONE OR MORE PROMISES OF A CONTRACT
THE ACUSED COULD NOT TESTIFY ON HIS OR HER OWN BEHALF.
ONLY PERSONS WHO WERE NOT PARTIES TO THE CONTRACT COULD TESTIFY
WITNESSES MADE FALSE STATEMENTS TO PROTECT THEIR FRIENDS

4. Perjury- WITNESSES MAKE FALSE STATEMENTS UNDER OATH IN COURT
Statutes of Frauds (1677)- CERTAIN CONTRACTS MUST BE EVIDENCED BY A WRITING IN ORDER TO BE ENFORCEABLE
A WRITING DOESN’T HAVE TO BE LONG AND FORMAL TO BE ENFORCEABLE

5. Memorandum- WRITTEN EVIDENCE OF AN AGREEMENT.
Examples: LETTERS, SALES SLIPS, INVOICES, S, CANCELED CHECK
The memorandum must include enough information to satisfy the statutes of fraud:
THE PLACE
THE DATE
THE PARTIES
SUBJECT MATTER
PRICE AND TERMS
INTENT
SIGNATURE OF THE PARTY WHO MAY BE CHARGED

6. HANDWRITTEN TERMS PREVAIL OVER TYPED
TYPEWRITING PREVAILS OVER PRINTING
WRITTEN NUMBER PREVAILS OVER FIGURES (CHECK)

7. Ambiguous- CAN BE UNDERSTOOD IN DIFFERENT WAYS
*Courts lean in favor of the party who DID NOT draft the contract.

8. Contracts That Must Be In Writing
Statute of frauds- DOES NOT ELIMINATE THE ELEMENTS OF A VALID CONTRACT, IT ADDS THE REQUIREMENT OF WRITTEN EVIDENCE THAT THE CONTRACT EXISTS.
Executory contracts- CONTRACTS THAT HAVE NOT BEEN FULLY PERFORMED

9. The types of contracts that must be in writing are:
Contracts to pay the debts of others.
Example: PROMISE TO PAY IF THEY DON’T PAY-CO-SIGNER ON A LOAN, PARKING TICKETS
Contracts by executors and administrators of estates to pay debts of deceased persons out of their own pockets.
Example: A PERSON DIES WITH 10,000 IN HIS/HER ACCOUNT. THEY OWE CREDITORS 12,000. IF THE EXECUTOR OF THE ESTATE MAKES AN ORAL AGREEMENT TO PAY THEIR DEBTS THEY ARE NOT LEGALLY OBLIGATED TO PAY THE DEBT.

10. Contracts requiring more than a year to perform.
Example: IF AN AGREEMENT TO PERFORM A TASK THAT OBVIOUSLY REQUIRES MORE THAN ONE YEAR TO COMPLETE, THE AGREEMENT IS UNENFORCEABLE-ONE PERSON PAINTING ALL THE OFFICES IN A SKYSCRAPER
Contracts in consideration of marriage.
Either party can break the contract- AGREEMENT TO GET MARRIED
IF ONE PERSON AGREES TO MARRY ANOTHER BECAUSE OF A MONETARY PROMISE OF A THIRD PARTY, THE AGREEMENT MUST BE IN WRITING
Example: BRIDE’S MOTHER AGREES TO PAY FOR THE HONEYMOON IF THE GROOM MARRIES HER DAUGHTER

11. Contracts to sell real property.
Real property- LAND AND ANYTHING PERMANENTLY ATTACHED TO IT
PURCHASE AND SALES AGREEMENT MUST BE IN WRITING
Exception- Equitable estoppel- PREVENTED FROM CLAIMING THE STATUTE OF FRAUDS WHEN OTHER PARTY CHANGES THEIR POSITION IN RELIANCE ON AN ORAL PROMISE
MAKE IMPROVEMENTS ON THE PROPERTY
CHANGES THEIR POSITION-MOVES

12. Contracts for the sale of goods costing $500 or more.
Goods- MOVABLE ITEMS INCLUDING SPECIALLY MANUFACTURED ITEMS; FURNITURE, BOOKS, CLOTHING

13. Assignment
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14. Parol Evidence Rule
Parol Evidence Rule- EVIDENCE OF ORAL STATEMENTS MADE BEFORE SIGNING A WRITTEN AGREEMENT CANNOT BE PRESENTED IN COURT TO CHANGE OR ADD TO THE TERMS OF A WRITTEN AGREEMENT
Parol- WORD OF MOUTH
ORAL EVIDENCE CAN BE USED TO CLARIFY WHAT WAS WRITTEN

15. The Best Evidence Rule
Best evidence rule- COURTS USUALLY REQUIRE THAT THE ORIGINAL COPY OF A WRITTEN AGREEMENT BE SUBMITTED INTO EVIDENCE RATHER THAN ANY SORT OF COPY
THE COURT WOULD LOOK WITH DISFAVOR AT PHOTOCOPIES OR CARBON COPIES OF THE WRITTEN AGREEMENT
MAKING COPIES CAN MAKE IT EASIER FOR A PARTY TO CONCEAL ANY MISLEADING ALTERATIONS TO THE ORIGINAL AGREEMENT
Each party to a contract receives A duplicate original- AN ORIGINAL VERSION OF THE CONTRACT

16. Changing the Writing READ THE ENTIRE TEXT OF THE DOCUMENT
IF YOU DON’T UNDERSTAND OR AGREE; CROSS IT OUT AND HAVE THEM INITIAL
DON’T BE AFRAID TO MAKE CHANGES ON A PRINTED FORM. IF ANY PROMISES ARE MADE, WRITE THEM IN AND HAVE THEM INITIAL
IF THEY WON’T CHANGE THE WRITING; WALK AWAY AND REFUSE TO SIGN
IF THE CONTRACT CONTAINS A LOT OF COMPLICATED OR AMBIGUOUS LANGUAGE, CONSIDER ASKING A LAWYER TO REVIEW THE AGREEMENT BEFORE SIGNING

17. Assignment
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