LENB Test 4

LENB Test 4 contract ️legally enforceable set of promises 4 elements to a valid contract ️agreement, consideration, contractual capacity, legal object agreement ️made up of an offer made by offeror to enter a contract acceptance ️offeree accepts terms consideration ️bargained for exchange Contractual Capacity ️the legal ability to enter into a binding agreement legal object ️to be enforceable, the contract cannot be either illegal or against public policy contract law = ️common law Uniform Commercial Code (UCC) ️widely adopted uniform business law Common Law ️(civil law) a law established by following earlier judicial decisions 2 kinda of contracts ️unilateral and bilateral- what offeror wants from offeree bilateral contract ️promise for a promise (binded contract) unilateral contract ️promise in exchange for an act what is the importance of types of contracts? ️knowing when you can legally do something about it express contracts ️written or spoken words enter you in a contract implied contract ️conduct or actions enter you in a contract 3 conditions to be implied ️1. plaintiff provided some property or service to defendant 2. plaintiff expected to be paid for such property or service and a reasonable person in position of the defendant would have expected 3. defendant had opportunity to reject property but didn't Quasi Contract ️sometimes called implied in law contracts; prevent one party from being unjustly enriched at expense of another (not a real contract) valid contract ️contain all 4 legal elements of a contract; a contract may be valid yet unenforceable void contract ️not a contract at all; either object is illegal or has some defect that is serious voidable ️if one or both parties can withdraw from a contract or enforce it contract executed ️once all terms of a contract have been fully performed executory ️a contract that has not been fully performed on either side (still stuff to do) 4 types of formal contract ️1. contracts under seal 2. recognizances 3. letters of credit 4. negotiable instruments contracts can be ️formal or informal an offeror has 3 elements ️1. intent 2. definite and certain terms 3. communication to the offeree intent ️offeror must manifest an intent to be bounded by offeree's acceptance and terms of a contract intent case ️lucy v. zehmer case 9-3 Can an advertisement be an offer? ️under limited circumstances but generally no auction with reserve ️-seller is expressing an intent to receive offers -auctioneer may w/draw item from auction at any time before the hammer is hit (signaling acceptance of bid) -bidder may revoke their bid anytime before hammer falls auction without reserve ️the seller is treated as making an offer to accept the highest bid and therefore must accept it material terms ️terms that allow a court to determine what the damages are in the event that one of the parties breaches the contract (must be included under common law) who must the offeror communicate with ️offeree or their agent 5 ways to terminate an offer ️1. Revocation by the offeror 2. Rejection by the offeree 3. Death or incapacity of the offeror