Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification.pdf
Chapter 10: Contracts – Nature and Classification
1. Overview of Contract Law
a. Sources of Contract Law.
i. Common Law for all contracts except sales and leases.
ii. Sale and lease contracts - Uniform Commercial Code (UCC).
b. The Objective Theory of Contracts
i. A party’s intention to enter into a contract is judged by outward, objective facts as
interpreted by a reasonable person, rather than by the party’s secret, subjective
intentions.
c. The Function of Contracts.
i. Provides stability and predictability for commerce.
ii. Contract = Set of legally enforceable promises, entered into by two or more parties,
to make their dealings predictable and to allocate risk.
d. Contract Requirements - To be enforceable, a contract must meet certain requirements:
i. Agreement
ii. Consideration
iii. Capacity
iv. Legality
e. Defenses to the Enforceability of a Contract
f. Types of Contracts/definitions:
i. Express or Implied
1. Express contract: has its important terms explicitly stated.
2. Implied contract: implied from the words and actions of the parties, even if
they never expressed an agreement.
a. Requirements for Implied Contracts
i. The plaintiff furnished some service or property.
ii. The plaintiff expected to be paid for that service or
property, and the defendant knew or should have known
that payment was expected.
iii. The defendant had a chance to reject the services or
property and did not.
3. Mixed Contracts with Express and Implied Terms is possible
ii. Unilateral or Bilateral
1. Unilateral contract: contract formed when one party acts in response to
other party’s promise
2. Bilateral contract: contract in which both parties make promises
iii. Contract Performance
1. Executed - A contract that has been fully performed on both sides.
2. Executory - A contract that has not been fully performed on either side.
iv. Contract Formation - Formal versus Informal Contracts
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 17:50:31 GMT -06:00
Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification.pdf
https://www.cliffsnotes.com//study-notes/27504874
Chapter 10: Contracts – Nature and Classification
1. Overview of Contract Law
a. Sources of Contract Law.
i. Common Law for all contracts except sales and leases.
ii. Sale and lease contracts - Uniform Commercial Code (UCC).
b. The Objective Theory of Contracts
i. A party’s intention to enter into a contract is judged by outward, objective facts as
interpreted by a reasonable person, rather than by the party’s secret, subjective
intentions.
c. The Function of Contracts.
i. Provides stability and predictability for commerce.
ii. Contract = Set of legally enforceable promises, entered into by two or more parties,
to make their dealings predictable and to allocate risk.
d. Contract Requirements - To be enforceable, a contract must meet certain requirements:
i. Agreement
ii. Consideration
iii. Capacity
iv. Legality
e. Defenses to the Enforceability of a Contract
f. Types of Contracts/definitions:
i. Express or Implied
1. Express contract: has its important terms explicitly stated.
2. Implied contract: implied from the words and actions of the parties, even if
they never expressed an agreement.
a. Requirements for Implied Contracts
i. The plaintiff furnished some service or property.
ii. The plaintiff expected to be paid for that service or
property, and the defendant knew or should have known
that payment was expected.
iii. The defendant had a chance to reject the services or
property and did not.
3. Mixed Contracts with Express and Implied Terms is possible
ii. Unilateral or Bilateral
1. Unilateral contract: contract formed when one party acts in response to
other party’s promise
2. Bilateral contract: contract in which both parties make promises
iii. Contract Performance
1. Executed - A contract that has been fully performed on both sides.
2. Executory - A contract that has not been fully performed on either side.
iv. Contract Formation - Formal versus Informal Contracts
This study source was downloaded by 1827175 from cliffsnotes.com on 01-08-2026 17:50:31 GMT -06:00
Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification Chapter 10 Contracts - Nature and Classification.pdf
https://www.cliffsnotes.com//study-notes/27504874
