unit 6 contracts. definition n an agreement between two or more parties enforceable in court
TRANSCRIPT
![Page 1: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/1.jpg)
Unit 6
Contracts
![Page 2: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/2.jpg)
Definition
An agreement between two or more parties enforceable in court.
![Page 3: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/3.jpg)
Elements of a contract
Competent parties Proper subject matter Offer Acceptance Consideration (detriment)
![Page 4: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/4.jpg)
Competent parties
Age Sound mind Exception for necessaries Void versus voidable contracts
![Page 5: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/5.jpg)
Proper subject matter
Not illegal Not (excessively) immoral
![Page 6: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/6.jpg)
Meeting of the minds
Offer must contain material terms– Newspaper ads - invitation to make an
offer Acceptance must be unqualified
– Qualified acceptance is a counteroffer• Terminates offer
– Grudging acceptance
![Page 7: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/7.jpg)
Consideration/Detriment
Exchange of value Need not be money
![Page 8: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/8.jpg)
Types of contracts Express bilateral
– Promise for a promise Express unilateral
– Promise for an act– Exception to advertising exception
Implied (Quasi-contract)– Implied in fact (real contracts where assent
is implied)– Implied by law
• restitution to prevent unjust enrichment
![Page 9: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/9.jpg)
Statute of frauds
Some contracts must be in writing to be enforceable
Current NC requirements Exceptions
– Partial performance– Promissory estoppel
![Page 10: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/10.jpg)
Parol evidence rule
Written contract Prior or contemporaneous oral
statements barred– Except to clarify ambiguous terms
Subsequent oral statements admissible– Unless barred by an integration clause
![Page 11: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/11.jpg)
Remedies
Money damages Specific performance Negative injunction Rescission and restitution
![Page 12: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/12.jpg)
Defenses
Impossibility Impracticability Mistake
![Page 13: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/13.jpg)
Stipulated (liquidated) damages
No penalties Reasonably related to actual damages
![Page 14: Unit 6 Contracts. Definition n An agreement between two or more parties enforceable in court](https://reader036.vdocument.in/reader036/viewer/2022071807/56649e735503460f94b72af4/html5/thumbnails/14.jpg)
Time
Statute of limitations Laches (equity)