Nature of contracts (incomplete)
22 October 2020
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Some promises are not legally binding contracts.
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A promise is an assertion that something will or will not happen in the future.
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Resolving whether a promise should be enforced is the essence of contract law.
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Contract law shows what excuses our society accepts for breaking certain types of promises.
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A contract is a promise to act.
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Contract disputes rarely arise on a promise of future performance.
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The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.
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One of the requirements of a valid contract is its acceptance.
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“Consideration” refers to the genuine assent of all of the parties to a contract.
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One of the requirements of a valid contract is a fair price.
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There are no exceptions to the rule that contracts voluntarily entered into will be enforced.
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An offer to form a bilateral contract is accepted only by completing the contract performance.
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An offeror is a person who makes an offer.
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An offer to form a unilateral contract is accepted by a promise to perform.
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A unilateral contract is formed when the one receiving the offer completes the requested act or performance.
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Offers may not be revoked before they are accepted.
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Informal contracts are usually based on substance rather than form.
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A check, like other negotiable instruments, is a formal contract.
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An implied-in-fact contract is implied from the conduct of the parties.
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An express contract must be in writing.
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Parties can form a contract without putting the terms in writing.
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An executory contract is one that has been fully performed.
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A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.
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An otherwise valid contract may be unenforceable if it is not in writing.
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To be valid, a contract must be enforceable by all of the parties to it
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A quasi contract arises from a mutual agreement between two parties.
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A quasi contract is not a true contract.
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If a voidable contract is avoided, the parties to it are released from it.
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A contract cannot be void if its purpose is legal.
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A void contract is enforceable if it is in writing.
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The doctrine of quasi contract applies only if there is an actual contract.
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Plain language laws regulate some types of contracts to require “legalese.”
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Under the plain meaning rule, a court will enforce a contract, in which the writing is clear and unequivocal.
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When the words in a contract have more than one meaning, they are cut from the contract.
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A reasonable, lawful, and effective meaning will normally be given to all of a contract’s terms.