COB 218 Chapter Notes - Chapter 12: Contract, Executory Contract, Quasi-Contract

• School: JMU
• Department: College of Business
• Course: COB 218
• Professor: Kenneth Alger

Document Summary

12: the formation of traditional & e contracts. Contract: a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. Objective theory of contracts: the view that contracting parties shall only be bound by terms that can objectively be inferred from promises made. A part(cid:455)"s i(cid:374)te(cid:374)tio(cid:374) to e(cid:374)ter i(cid:374)to a legall(cid:455) (cid:271)i(cid:374)di(cid:374)g agree(cid:373)e(cid:374)t, or (cid:272)o(cid:374)tra(cid:272)t, is judged (cid:271)(cid:455) outward objective fact. Objective facts may include: what the party said when entering into the contract, how the party acted or appeared, the circumstances surrounding the transaction. Requirements for a valid contract to exist: agreement, consideration, contractual capacity, legality. Contract can be unenforceable if: voluntary consent, form. Bilateral contract: (cid:862)a pro(cid:373)ise for a pro(cid:373)ise(cid:863) arises when a promise is given in exchange for a return promise.