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Reference Guide

Permachart - Marketing Reference Guide: Meeting Of The Minds, Executory Contract, Uniform Commercial Code

4 pages146 viewsFall 2015

Department
Law and Business
Course Code
LAW 603
Professor
All
Chapter
Permachart

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WHAT IS A CONTRACT?
Contracts
Contracts
permacharts.com
TYPES OF CONTRACTS
• A contract is an agreement voluntarily entered into,
which the parties intend to be enforceable at law
• If the agreement is not fulfilled, both of the parties
would be able to either enforce performance or
obtain some other legal remedy to make sure that
the other keeps the obligation
Bilateral The parties to the agreement
exchange promises to do some
future act In essence, it is a
promise for a promise, including
rights and duties on each side
Constructive Similar to an implied contract,
where the circumstances are such
that the intent of the creation of a
contract may be inferred
Executed All the terms of the agreement
have been completed by all parties
involved
Executory All or part of the terms of the
agreement remain to be performed
Express The terms of the contract are
stated, orally or in writing, by the
parties
Implied The contract is inferred from the
conduct of the parties, although
not spelled out in words
Simple The contract may be in written,
spoken, or implied form, but is not
under seal and requires no special
form to be enforceable • Implied
actions include shaking hands or
any physical movement that leads
the other party to assume a
contract has been made
Specialty This contract pertains to a special
formal event and, as such, must be
in writing and under seal A wax
seal used to be required in the
sealing of a contract, but it has
been replaced by a red sticker or
the word “SEAL” is printed next to
where the parties sign
Unenforceable The law will not permit
enforcement of this contract
because some additional
requirements outside of the
common law elements of the
contract are missing
Unilateral This contract comes into existence
when one party makes a promise
and, instead of receiving a promise
in return, is the recipient of an act
by the other party
Void The acts, conduct, and writings of
the parties does not bring about a
change in their legal status
• In essence, there is no contract
Voidable Voidability exists where either of
the parties has the power to avoid
the legal requirements created by
a valid agreement simply by
electing to disaffirm the contract
• This statute targets specific contracts
which must be made in writing
• Agreements may be deemed as void
or voidable if they do not contain
the necessary writing
• If, by the terms of an oral
agreement, there is a possibility of
performance within a year, it is said
to be not within the statute
• Oral agreements: not invalid
• Various states have enacted “plain
language” laws, which relate to the
writing required for certain contracts
• Personal services: considered to be
not within the statute if they can be
performed within one year
• Joint obligation: not an undertaking
by one to answer for the debt of the
other
STATUTE OF FRAUDS
REQUIREMENTS
• A written contract, or some note or
memorandum of it, that contains at
least the bare essential terms
• The writing must be signed in some
form or another by the party
against whom the agreement is
sought to be enforced
TYPES OF CONTRACTS
• Long-term leases
• Contracts that cannot be completed
within one year of the making
• Promises to pay another person’s
debt
• Agreements to marriage
• Agreements to convey interests in
real property, except for leases for
less than one year
DOCTRINE OF PART PERFORMANCE
• Where a contract has been partly
carried out by one of the parties,
the other cannot use the absence of
a written contract as an excuse not
to pay for work done
• The courts will not waive the normal
requirement to have certain contracts
in writing when they meet the
standards of the Statute of Frauds
UNIFORM COMMERCIAL CODE
• This covers various types of
contracts for the sale of goods of a
certain value and makes them
unenforceable without a signed
writing
• According to the Merchant’s Firm
Offer Rule,awritten offer held
open by the merchant is irrevocable
for the stated, or reasonable,
amount of time, but not longer
than three months without
consideration
PAROL EVIDENCE RULE
• Where there is a dispute concerning
a written contract, the court will
consider only the terms of the
contract
• No matter what has been said
between the parties, the court will
only enforce what is put down in
writing
• Oral evidence: may be used to
show that written contract is not
entire contract
SMALL PRINT
• In general, parties are bound by the
printed terms on the document
whether they read it or not
• However, the fine print must be
brought to the offeree’s attention
by the offeror
GLOSSARY O F T E R M S
Beneficiary Person who benefits from the fulfillment of a contract
Breach Failure, without legal excuse, to perform any promise which
forms a whole or part of a contract
Obligee One to whom another is obligated
Obligor One who is bound by a legal obligation
Offeree The party that accepts the contract
Offeror The party that tenders the contract
Party Includes human beings and any legal entity recognized by the
law as being able to enter into a contract in its own right
Rescission Cancellation or annulment of a contract
Notes: Please be advised that this chart does not account for jurisdictional
differences • It is an informational tool which should be supplemented by more
comprehensive materials and/or professional legal advice
l e a r n r e f e r e n c e r e v i e w
TM
permacharts
CONTRACTS • A-810-91© 2003-2009 Mindsource Technologies Inc.
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