Contracts
Table of contents
1. What is a contract
2. Classes of contracts
3. Methods of offer
4. Methods of acceptance
5. Different capacities of a contract
6. Concepts of consideration
7.Uniform Commercial Code
8. citations
What is a contract?
A contract is a legally enforceable document between two or more parties creating an obligation: usually regulated and enforced by the state in which it was made.
Classes of contracts
Valid- a contract that is enforceable by law. One party shall be bound to some performance, the other shall have a legal right to enforce.
Void - An agreement which is not enforceable. Such an agreement creates no legal right and obligations on either side.
Voidable Contract - an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others.
Unenforceable The court, under certain circumstances, will not enforce a contract which is otherwise valid because of the technical difficulty created by the law of procedure.
Illegal - These types of contract are considered contrary to law and prohibited by law on pain of penalty where a void contract does not. All illegal contracts are void, but all void contracts are not illegal.
Methods of offers
Oral offer- this type of contract offer is made when two or more people verbally agree that a product or service will be carried out.
Written offer- an offer made through email or printed on paper so that all parties are able to read and agree of the terms and conditions of the contract
Methods of acceptance
Express acceptance - you expressly give your consent for the contract. Examples of expressly accepting a contract include your signature, orally agreeing to the offer, shaking hands, or even exchanging business cards with the offer and accepted terms
Implied acceptance- You have a previous type of acceptance with someone and you both exchange goods or services.
Conditional acceptance - there is an expectation of how the offer is accepted. An example would be placing a time condition on an agreement.
Different capacities of a contract
The capacity of a contract is in short the competence of the person who is agreeing to be apart of the contract. Usually the capacity to contract refers to the capacity to enter into a legal agreement and the competence to perform some act.certain people are exempt from being able to enter a contract such as minors/infants, The insane, people under the influence of narcotics, and bankrupt.
Concepts of consideration
Consideration is something of value given exchange for something else of value. The elements of consideration include:
1. There has to be something worth bargaining over to both parties
2. There has to be a mutual exchange between both parties
3. The exchange in the contract has to be something of value
The different types of consideration include money, services, personal property, real property, promise to act, promise to retain from acting, etc. If there is no recognizable consideration in the contract it may be deemed invalid by a court.
Uniform Commercial Code
The uniform commercial code is a set of laws that govern all commercial transactions in the United States.It is designed to increase uniformity in transactions across state and jurisdictional borders.there are nine articles within the code such as definitions and general provisions, sales and leases, negotiable instruments, and more.
Citations
Business Finance Articles
Upcounsel
Free Advice
US legal
legal dictionary
The Balances
Made by: Laura Johnson and Rene Morin