Contractual Relationships I

Front 1

Bilateral Contract

Back 1

A binding agreement in which each party has made a promise to the other.

Front 2

Unilateral Contract

Back 2

A binding agreement in which one party has made an offer that the other can accept only by action, not words.

Front 3

Express Contract

Back 3

A binding agreement in which the parties explicitly state all the important terms.

Front 4

Implied Contract

Back 4

A binding agreement created not by explicit language but by the informal words and conduct of the parties.

Front 5

Executory Contract

Back 5

A binding agreement in which one or more of the parties have not fulfilled its obligations.

Front 6

Executed Contract

Back 6

A binding agreement in which all parties have fulfilled all obligations.

Front 7

Valid Contract

Back 7

Satisfies all of the law's requirements.

Front 8

Unenforceable Agreement

Back 8

Occurs when the parties intend to form a valid bargain but a court declares that some rules of law prevent enforcing it.

Front 9

Voidable Contract

Back 9

An agreement that, because of some defect, may be terminated by one party, such as a minor, but not by both parties.

Front 10

Void Agreement

Back 10

An agreement that neither party may legally enforce, usually because the purpose of the bargain was illegal or because one of the parties lacked capacity to make it.

Front 11

Ten types of Contracts

Back 11

1. Bilateral
2. Unilateral
3. Express
4. Implied
5. Executory
6. Executed
7. Valid
8. Unenforceable
9. Voidable
10. Void

Front 12

Remedies Created by the Judicial Activism

Back 12

1. Promissory Estoppel
2. Quasi-contract

Front 13

Promissory Estoppel

Back 13

The defendant made a promise that the plaintiff relied on.

Front 14

Three things necessary to use promissory estoppel

Back 14

1. The defendant made a promise knowing that the plaintiff would likely rely on it
2. The plaintiff did rely on the promise
3. The only way to avoid injustice is to enforce the promise

Front 15

Quasi-contract

Back 15

The defendant did not make any promise, but did receive a benefit from the plaintiff.

Front 16

Three things necessary to to use quasi-contract

Back 16

1. The plaintiff gave some benefit to the defendant
2. The plaintiff reasonable expected to be paid for the benefit and the defendant knew this.
3. The defendant would be unjustly enriched if he did not pay.

Front 17

Quantum meruit

Back 17

"As much as she deserves." The damages awarded in a quasi-contract case.

Front 18

Four Theories of Recovery

Back 18

1. Express Contract
2. Implied Contract
3. Promissory Estoppel
4. Quasi-contract

Front 19

Unilateral Contract

Back 19

A binding agreement in which one party has made an offer that the other can accept only by action, not words.

Front 20

Express Contract

Back 20

A binding agreement in which the parties explicitly state all the important terms.

Front 21

Implied Contract

Back 21

A binding agreement created not by explicit language but by the informal words and conduct of the parties.

Front 22

Executory Contract

Back 22

A binding agreement in which one or more of the parties have not fulfilled its obligations.

Front 23

Executed Contract

Back 23

A binding agreement in which all parties have fulfilled all obligations.

Front 24

Valid Contract

Back 24

Satisfies all of the law's requirements.

Front 25

Unenforceable Agreement

Back 25

Occurs when the parties intend to form a valid bargain but a court declares that some rules of law prevent enforcing it.

Front 26

Voidable Contract

Back 26

An agreement that, because of some defect, may be terminated by one party, such as a minor, but not by both parties.

Front 27

Void Agreement

Back 27

An agreement that neither party may legally enforce, usually because the purpose of the bargain was illegal or because one of the parties lacked capacity to make it.

Front 28

Remedies Created by the Judicial Activism

Back 28

1. Promissory Estoppel
2. Quasi-contract

Front 29

Promissory Estoppel

Back 29

The defendant made a promise that the plaintiff relied on.

Front 30

Three things necessary to use promissory estoppel

Back 30

1. The defendant made a promise knowing that the plaintiff would likely rely on it
2. The plaintiff did rely on the promise
3. The only way to avoid injustice is to enforce the promise

Front 31

Quasi-contract

Back 31

The defendant did not make any promise, but did receive a benefit from the plaintiff.

Front 32

Three things necessary to to use quasi-contract

Back 32

1. The plaintiff gave some benefit to the defendant
2. The plaintiff reasonable expected to be paid for the benefit and the defendant knew this.
3. The defendant would be unjustly enriched if he did not pay.

Front 33

Quantum meruit

Back 33

"As much as she deserves." The damages awarded in a quasi-contract case.

Front 34

Four Theories of Recovery

Back 34

1. Express Contract
2. Implied Contract
3. Promissory Estoppel
4. Quasi-contract

Front 35

Chapter Review
1. What is the subject of the agreement?

Back 35

1. If the contract is for the sale of goods, UCC Article 2 governs.
2. If the contract is for services, employment, or real estate, the common law governs.

Front 36

2. Did the parties intend to contract?

Back 36

1. If the parties formally agreed and stated explicit terms, there is probably a express contract
2. 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.

Front 37

3. If there is an agreement, is there any reason to doubt its enforceability?

Back 37

1. An unenforceable agreement is one with a legal defect, such as an oral agreement that the law requires to be in writing.
2. 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.
3. 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.

Front 38

4. If there is no contract, are there other reasons to give the plaintiff damages?

Back 38

1. 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.
2. 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.