Express: giving terms of agreement (can be oral or written)-price, specifications, delivery
Implied (in fact): agreed services to be performed, but implied a reasonable price. (
-Implied in law contract
-Not a real contract
Ex: A white picket fence was installed at the wrong house. However, when the company went to remove
the picket fence, the house wanted to keep it. Therefore, the law requires the couple to pay a reasonable price in order to keep the fence.
Bilateral vs. Unilateral:
Bilateral: 2 promises (promise for promise)
Unilateral: promise in exchange for action
Formal vs. Informal:
Formal: simple, promising note (seal, SS under signature)
Informal: everything else
Executed vs. Executory
Executed: full performance by both parties
Executory: one or both need to perform an action
Valid, Void, Voidable, & Unenforceable
Valid: If a contract consists of all components (Agreement, consideration, competent parties, and legality)
Void: One of the elements is missing therefore not a valid contract
Unenforceable: Void contract because missing
the element of legality
Ex: Car contract
Contract for real estate
Elements – Offer:
Intention (objective theory):what most people would have thought based on comments and statements EX; what happens if you look for used car and you go on ebay and you see a intersting car. Are you going to pay the price? No because advertisements are invitations to negotiate (intent to make an offer)-most important
Definiteness: subject matter, parties (enough terms to indicate an offer)
Communication: offers are affected when received
Termination of the Offer:
Sale to third party does not automatically revoke offer
By operation of law:
-Lapse of time (if not stated in offer, by a reasonable time) EX automatically ends in 15 days
-Destruction of the subject matter
-Death or incompetence of either party
By action of the partiesRevocation(not a rejection but taking back,effective upon recieved):
-Made by person who made offer(anytime before acceptance)
-Option Contracts: cannot be revoked (money has been paid to keep offer open)
-UCC (Uniform Commercial Code): only professional
merchants/not applying to services or real estate
-Counter offer – conditions on yes, but.
-Merchants cannot revoke a firm offer
-Personal property (tangible)– not real estate
-By a merchant
-Must be written and signed by
merchant (specific time not exceeding 90 days)
Mailbox rule: offers are accepted when sent
Unequivocal: Yes or no? Clear language, no conditions
Silence as Acceptance: Silence is not acceptance unless parties have a pre-arrangement.
When does an acceptance become
If no special means of communication is not specified
-Not used by offeree
-Otherwise, effective upon receipt if specified in offer
-Where there is a rejection followed by an acceptance
-Something of value
-SUBJECTIVE – this is what the parties decide
-Bargain for exchange
-Must be legally sufficient (individuals are promising/doing something that they are not legally obligated to do or refraining from something).
giving up a right – common way disputes are settled
Adequacy of Consideration:
-Quantity – how much
-Ex: If you name your child after me I will give you $5,000. But if you already named your child after me before I asked, I do not owe you $5,000.
-$1.00 – transferring of land for development
When is Consideration Not Present?
-Past Consideration – no bargain for exchange (you have already done it)
-Performing a pre-existing duty (Ex: a cop can’t collect rewards for finding a criminal)
-Employee states that they want more money for performing the exact same duties.
Promises Enforceable Without Consideration
Promissory Estoppel: ?
When a person making the promise can reasonably expect the other person to rely on it and the only way to avoid injustice is to enforce the contract.
-cant revoke your promise
Promises Enforceable Without
Quasi Contract: ?