1. CONTRACTS Chapter 9 Introduction to Contracts

2. CONTRACTS A AGREEMENT between two or more persons the PERFORMANCE of which the law considers to be an OBLIGATION and for the breach of which the law will impose a REMEDY. Reflects social values

3. Two Bodies of Contract Law Uniform Commercial Code Sale of goods (tangible personal property) Common Law Contracts not covered by the UCC ( Services, real estate, employment, insurance, etc.)

4. Basic Elements of a Contract OfferAcceptanceConsiderationCapacityLegality

5. TYPES OF CONTRACTS Bilateral: Promise for a promise Unilateral: Promise for an action Express: Terms are explicitly stated in words. (Oral or written) Implied: Terms indicated by conduct of the parties.

6. Types of Contracts Valid: Contains all of the necessary elements of a contract. Void: Missing one or more of the necessary elements for a valid contract. Voidable: Valid contract which may be avoided by one or both parties by an action of rescission

7. Types of Contracts Executed: Fully performed by both parties. Executory: Not fully performed.

8. Quasi Contract Implied in law contract. –Benefit conveyed –Receiver of benefit is aware of benefit –Unjust to allow benefit to be retained without payment.

9. Promissory Estoppel A promise which the promisor should reasonably expect to induce action or forbearance on the part of a third person and which does induce such action or forbearance is binding if injustice can be avoided only be enforcement of the promise