Ch. 4 What is a Contract Section 4-1 Agreements and Contracts

Bell Ringer #1 Write this statement in your notebook and fill in the blanks. “When I access a music download service on the Internet, I have read a document called a _____________ and check a box that says that I _________ the terms of the agreement.”

Understanding Contract Law Can you think of any other contracts that you might have entered into lately? Is a contract always a written document that needs to be signed?

Contracts Contracts - any agreement enforceable by law. You should understand all parts of a contract before agreeing to it Not all agreements are contracts –Informal promise to take out trash is not a contract –Offering a reward for finding my cat is a contract

Scenario “I promise to take you all out to dinner this weekend. You can order anything you want, and I will pay for it.” “Wait, I just remembered that I am going out of town this weekend and I won’t be able to do it.” Has a contract taken place?

Formalist Theory of Contract Law -focuses on the form of agreements (elements that make up the agreement)

Scenario from Beginning “I promise to take you all out to dinner this weekend. You can order anything you want, and I will pay for it.” “Wait, I just remembered that I am going out of town this weekend and I won’t be able to do it.” Label the different elements of this story to find out if a contract has occurred.

Answer 1.Offer - I offered to take the class out to dinner. 2.Acceptance - They agreed to go 3.Genuine Agreement - if both parties are sincere then yes otherwise no X 4.Capacity - I am able to make the agreement 5.Consideration - X 6.Legality - there is nothing illegal about this

Characteristics of a Contract Valid, void, voidable, or unenforceable. Express or implied Bilateral or unilateral Oral or written A contract can have any number of these characteristics!

Types of Contracts Valid - legally good, legally binding Void - has no legal effect, contract must be missing one of the elements Voidable - one of the parties can void or cancel a contract for some legal reason (minors) Unenforceable - courts will not uphold the contract, usually because some sort of law (statute of limitations expiring)

Types of Contracts Express Contracts - contract statement that may be oral or written Implied Contracts - contract that comes from the actions of the parties

Types of Contracts Bilateral contract that contains two promises one party promises to do something in exchange for the other parties promise to do something else Unilateral contract that contains a promise by only one person to do something, if and when the other party performs some act rewards are most common Contract exists once the act is performed. Unilateral contract that contains a promise by only one person to do something, if and when the other party performs some act rewards are most common Contract exists once the act is performed.

Types of Contracts Oral - contract created by word of mouth and comes when two people form a contract by speaking to each other. Written - contract is created when all the details are written down and agreed to by both parties.

Homework Page 86 #1-3 Academic connection for Math Critical Thinking Problem.