Contemporary Business and Online Commerce Law - Chapter 8

Nature of traditional and online contracts

Definition of contract

A contract is "a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the wall in some way recognizes a duty."

Parties to a contract

Offeror -- the party and makes an offer to enter into a contract is the offeror

Offeree -- the party to whom the offer is made is the offeree

Elements of a contract

1. agreement


2. consideration


3. contractual capacity


4. lawful object

Defenses to the enforcement of a contract

1. genuineness of asset


2. writing and form

Sources of contract law

1. common law of contracts


2. uniform commercial code


3. reinstatement of contracts

Theories of contract law

1. class law of contracts -- according to this theory; parties were free to negotiate contract terms without government interference


2. modern law of contracts -- according to this theory; parties may negotiate contract terms subject to government regulations

Classifications of contracts

Formation

1. bilateral contract -- this is a promise for a promised


2. unilateral contract -- this is a promise for an act


3. express contract -- this is a contract expressed in oral or written words


4. implied-in-fact contract -- this is a contract employed from the conduct of the parties


5. quasi- contract-- this is a contract implied by law to prevent unjust enrichment and unjust detriment


6. formal contract -- this is a contract that requires a special form or method for creation


7. informal contract -- this is a contract that requires no special form or method for creation

Enforceability

1. valid contract -- a valid contract meets all the essential elements to establish a contract


2. void contract -- no contract exists


3. voidable contract -- a voidable contract is one, where one or both parties have the option of avoiding or enforcing the contract


4. unenforceable contract -- an unenforceable contract is a contract that could not be enforced because of a legal defense

Performance

1. executed contract -- a contract that is fully performed on both sides is called an executed contract


2. executory contract -- a contract that is not fully performed by one or both parties is called executory contract

Equity

Equity is a doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law.