CONTRACTS I OULTINE
Professor Martin-Scott, Michalemas 2008
Contract- promise that the law will enforce; basic economics; creates social stability
I. Introduction to Contracts
A. O + A + “C” = K
1. Offer
2. Acceptance
3. Consideration
B. Types of contracts
1. Formal – legal proceedings
2. Informal- created from conduct, mutual assent
3. express- wrote out terms of contract
4. implied- in-fact contracts- based on conduct, that everyone understood- only if you can show conduct of the parties
5. implied-in- law- contract created by the court- purpose is to d justice
C. Idea of Mutual Assent
1. Offer + Acceptance
D. Courts do not enforce:
1. Social Contracts (unless something to suggest want to K)
2. K w/ family members
E. Remedy for Breach of Contract
1. Specific Performance- law assumes you want $, if you want something else you have to specify.
F. Statements by doctors are NOT K
1. Unless Dr. gives the impression that goes beyond the normal impression of “everything is going to be alright”
2. a specific result that is not being promised
3. guarantees by non-professional are not K
G. To Determine if binding K
1. usually in writing?
2. need formal writing for full expression?
3. few or many details?
4. large or small amount?
5. common or unusual?
6. all details agree on?
7. writing discussed or contemplated?
II. The Offer- “Yes-able” proposition
A. The Or is the master of the offer
B. Use objective standard- reas. Person
1. Look at outward behavior
C. 3 REQUIREMENTS
1. Communicated to Oee
2. Or must have a clear commitment to K
3. O must be definite in its terms
D. Ads- NOT OFFERS, only invitations to O
WHY?
1. usually not definite in terms
2. unlimited Oees
3. Can be offer if:
a. it is specific/definite in it’s terms
b. leaves nothing open to negotiation
4. Cannot be if:
a. unlimited
b. not definite
II. Acceptance – would a reas. Person in
ust know about it
2. exception government awards
3. If the O is from a govt agency (public), you need not know about the O to have a valid acceptance
H. Methods of A
1. Or will be bound to the K if there is
a. full performance- party fully performs under K
b. or part performance- party partially completes K
2. mere preparation to perform- DOESN’T bind the Or to K
III. The Terminators
A. Revocation by Offeror
1. Or can revoke anytime before A of O
a. by telling directly
b. indirectly by reliable 3rd party
i. An Oee cannot accept an O when they know through a reliable 3rd party that the Or doesn’t intend to remain in the K.
B. Lapse of time
1. Time state OR
2. at reasonable time
3. Oral O’s lapse at end of conversation EXCEPT where suggest want
