LW 221 Lecture Notes - Lecture 4: Estoppel
Document Summary
Contracts are governed by state common law: exception: Sale of goods contracts are governed by statues: article 2. Changes the common law in some cases so it is important to understand when ucc article applies: value of a contract. The value of making an agreement that is a contract is that you can legally hold the other party to a contract to what he promised. To enforce in court a contract must be valid and binding: step 1. Determine the agreement is a valid contract. Valid contract meets four elements: offer and acceptance, consideration, legality, capacity. Legal right to form a contract (one party cannot enter into a valid contract, mentally incompetent and have been declared mentally incompetent by a court) An invalid contract omits one or more of these four elements. An invalid contract also is called a void contract. Determine if the valid contract is binding.
