Welcome to Business Law Unit 4:Contracts

Ann Sanok

Whaz Up?

• This week: DB

• Two written assignments

• Quiz/Review

FYI….

• The case study intro is in error. It mentions double jeopardy – which was the subject matter of unit 3! However, once you read the actual case, it involves something entirely different and pertains to implied vs. express contracts.

Read the fine print…

• This week we look at the topic of Contracts.

The Basics of a “K”

• A contract is a legally enforceable agreement between two or more parties with mutual obligations, which may or may not have elements in writing.

Elements of a Contract:

• Offer and Acceptance

• Consideration

• Mutual Assent

Offer and Acceptance

• The most important feature of a contract is that one party makes an offer for an arrangement that another accepts.

Consideration Required

• What is consideration mean in contract law?

Consideration is….

• Consideration is something of value given by a promissor to a promisee in exchange for something of value given by a promisee to a promissor.

• Examples: money; doing something; not doing something

Doesn’t have to be fair or make sense..

• Questions of fairness are generally not involved in legal consideration; if someone wants to exchange a stack of wood for a luxury car, for example, this is considered entirely legal as long as both parties agree to the arrangement without coercion

• For instance, agreeing to sell a car for a penny may constitute a binding contract.] All that must be shown is that the seller actually wanted the penny.

Does a Contract Have to Be in Writing?

• Contracts can also be formed orally (parol contracts).

Oral contracts

• An oral contract is often provable by action taken by one or both parties which is obviously in reliance on the existence of a contract.

• Contracts for the sale of real estate valued greater than $ 500 must be in writing

Oral Contracts…

• An oral contract is enforceable unless its subject matter comes within the statute of frauds, an English Law adopted in the United States, that requires certain contracts to be in writing. For example, a contract to sell real property, to be enforceable, must be in writing to comply with the statute.

• An oral contract to sell Personal Property for an amount less than that set in the statute does not fall within its limits and, therefore, is enforceable without being reduced to a writing. The Uniform Commercial Code governs the enforceability of oral contracts in sales transactions involving merchants.

Some differences :

• One difference between oral and written contracts is that the time to sue for breach of an oral contract (the statute of limitations) is sometimes shorter.

• For example, California's limitation is two years for oral compared to four for written, Connecticut and Washington three for oral rather than six for written, and Georgia four for oral instead of 20 for written.

Express vs. Implied K

What’s the difference?

He said, she said….

Express: Written or Oral

Implied Contracts…

• Implied: A legally enforceable agreement that arises from conduct, from assumed intentions, from some relationship among the immediate parties, or from the application of the legal principle of equity.

Implied contract …..

• According to the Oklahoma pattern jury instructions, the elements of quasi-contract are:

• Plaintiff furnished / rendered valuable goods / services to Defendant with a reasonable expectation of being compensated;

• Defendant knowingly accepted the benefits of the goods / services; and

• Defendant would be unfairly benefited by the services / receiving the goods if no compensation were paid to the Plaintiff

This week’s news…

• Papers can be short 1-2 pages• Elaborate and explain• Define terms• Avoid pronouns : we, let us, you, I !!!!!• Avoid filler and empty repetitive phrases• Read it aloud before you submit!

Quiz/Review

• Posted under doc share – check it out!

Last Slide

• Enjoy your weekend• Happy 4th of July!• See you on the DB

and at next week’s seminar!