FIN 240 Chapter Notes - Chapter 11: Quasi-Contract, Contract, Executory Contract
Document Summary
Common law governs all contracts except when it has been modified or replaced by statutory law. Promisee - person to whom the promise is made. Rules of contract law are often followed to avoid potential disputes. Contract law provides an essential condition for the existence of a market economy. Duty and good faith are usually sufficient to obtain compliance with a promise. Contract law is necessary to ensure compliance with a promise or to entitle the innocent party to some form of relief. Contract - promise or 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. Formed by two or more parties who agree to perform or to refrain from performing some act now or in the future. Contract disputes arise when there is a promise of future performance.
