Business and Management
Submitted By ub77
Chapter 10 Review introduction to contracts
A contract is a promise that the law will enforce. Contracts are intended to make business matters more predictable. Analyzing a contract generally involves inquiring into some or all of these issues:
1. What is the subject of the agreement? • If the contract is for the sale of goods, UCC Article 2 governs. • If the contract is for services, employment, or real estate, the common law governs.
2. Did the parties intend to contract? • If the parties formally agreed and stated explicit terms, there is probably an express contract. • If the parties did not formally agree but their conduct, words, or past dealings indicate they intended a binding agreement, there may be an implied contract.
3. If there is an agreement, is there any reason to doubt its enforceability? • An unenforceable agreement is one with a legal defect, such as an oral agreement that the law requires to be in writing. • A voidable contract occurs when one party has committed fraud, giving the other party the right to terminate the agreement, or when one party lacks capacity to make the contract and may escape liability. • A void agreement means that the law will ignore the deal regardless of what the parties want, typically because the purpose of the deal is illegal.
4. If there is no contract, are there other reasons to give the plaintiff damages? • A claim of promissory estoppel requires that the defendant made a promise knowing that the plaintiff would likely rely, and the plaintiff did so. It would be wrong to deny recovery. • A claim of quasi-contract requires that the defendant received a benefit, knowing that the plaintiff would expect compensation, and it would be unjust not to grant it.
Chapter Review chapter 17 performance and discharge
1. A condition is an event that must occur before a party becomes…...