Must Contracts Be In Any Special Form? b Unless a particular form is required by statue, contracts may be oral or written.
How Are Contracts Classified? b 1) Method of Creation b 2) Formality b 3) Extent of Performance
Terminology Express Contract -the agreement is stated in words-written or spoken. Implied Contract -the agreement is not stated in words. Quasi Contract -the parties are bound as though a valid contract exists even though there is none. Formal Contract -a written contract that must be in some special form to be enforceable. Notary Public -a public officer who formally certifies that the signatures on deeds and other documents are authentic. Simple Contract -a contract that is not formal. Executed Contract-one that has been fully performed. Executory Contract -one that has not been fully performed.
What is the statute of frauds? b Statute of Frauds-law requiring certain contracts to be in writing and signed by the defendant in order to be enforceable.
What Contracts Are Subject To The Statute of Frauds? b 1) Contract for the Sale of Goods for $500 or More b 2) Contract to Sell or Sale of Any Interest in Real Property b 3) Contract That Cannot Be Performed Within One Year After Being Made b 4) Contract to Pay a Debt or to Answer for the Legal Obligation of Another Person b 5) Contract for Which the Consideration is Marriage
What Type of Writing is Required? b An adequate memorandum includes: date and place of the contractdate and place of the contract names of the partiesnames of the parties all material items of the agreementall material items of the agreement the signature of the party against whom the contract is to be enforced.the signature of the party against whom the contract is to be enforced.
What is the Parol Evidence Rule? b Parol Evidence Rule-the writing itself is the only evidence allowed in court to prove the terms of a written contract if the writing appears to be the complete agreement between the parties.
How are Written Contracts Interpreted? b 1) the writing is evaluated as a single, whole document b 2) on printed forms, added typewritten provisions prevail over contradictory printed provisions, and added handwritten ones prevail over both printed and typewritten ones b 3) if words and figures are not inconsistent, the words prevail b 4) where a trade custom or practice applies, both parties are presumed to know it, and the contract is interpreted in light of that trade custom or practice
Contracts of Adhesion-a contract in which the more powerful party dictates all the important terms.