1.15.1

Law for Business, 15e by Ashcroft

Chapter 5:

Nature and Classes of Contracts

Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning

5.2

Chapter 5 Objectives

State the five requirements for a valid contract.

Describe the types of contracts and how they differ from agreements.

Explain the difference between a contract and a quasi contract.

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5.3

Contracts

A contract can be defined as a legally enforceable agreement between two or more competent persons.

A breach of contract is the failure of one of the parties to perform the obligations assumed under the contract.

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5.4

Requirements of a Valid Contracts

Based on a mutual agreement by the parties

Made by competent parties Supported by consideration

given by each party to the contract.

Be for a lawful purpose Sometimes meet certain formal

requirements Sound

5.5

Void and Voidable Contracts

A void contract is an agreement with no legal effect It is not enforceable in court. It is not the same as an

unenforceable contract.

A voidable contract would be an enforceable agreement, but, because of circumstances, one or both parties may elect to void it click for sound

5.6

Types of Contracts

Express and implied

Express and implied

Executory and

executed

Executory and

executed

Unilateral and

bilateral

Unilateral and

bilateral

Formal and simple

Formal and simple

Quasi contractQuasi

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5.7

Contracts:True or False

A valid contract can be oral as well as written.

A formal contract is created in a particular form.

An executory contract has been fully performed by all parties.

Most contracts provide a clause in which one party can receive unjust enrichment.

QuickQuiz

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5.8

Contracts: True or False (answers)

A valid contract can be oral as well as written. - True

A formal contract is created in a particular form. - True

An executory contract has been fully performed by all parties. - False

Most contracts provide a clause in which one party can receive unjust enrichment. - False

QuickQuiz

QuickQuiz

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1.95.9

Have any questions?

Be sure you study the cases in the textbook for a thorough understanding of

this chapter.Contract

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