Module 2 - LAWS-1030 PDF

Module 2 ‐ LAWS‐1030 Contracts in Society LAWS-1030 Professor Josh Haug 1 Categories of Contracts and Definitions Including Elements of Validity and Forms of...

Module 2 ‐ LAWS‐1030 Contracts in Society LAWS-1030 Professor Josh Haug 1 Categories of Contracts and Definitions Including Elements of Validity and Forms of Agreement 2 Today’s Outcomes Review from last class Discuss the different categories of contracts Necessary Elements of Validity and the definition of a contract Discuss the ways contracts can be categorized Definitions of categorization 3 1  Module 2 ‐ LAWS‐1030 Review 4 Recall From Last Class Common Law is… Precedent… Private… between one another Statute Law is… Public… Acts… Administrative Law is… procedures of government agencies… 5 Recall From Last Class Contract Law is the branch of the law which establishes the circumstances in which a promise shall be legally binding on the persons making it… 6 2  Module 2 ‐ LAWS‐1030 Categories of Contracts 7 The Promise… Made by people all the time Not all promises carry legal intent Promises that do, may be Contracts! Therefore Contracts may be defined as: “…a promise or set of promises that are legally enforceable and, if violated, allow the injured party access to legal remedies”(1) Sources: (1) https://en.wikipedia.org/wiki/Contract 8 Contracts May Be Categorized Valid – (in force or enforceable) Void – (without substance) Voidable – (may be made void) Unenforceable – (technical / formal defect) Illegal – (not enforceable / purpose of agreement is to achieve an illegal end) 9 3  Module 2 ‐ LAWS‐1030 General Types of Contracts Simple or ‘Parol’ Contracts Specialty Contracts Contracts of Record 10 Simple Contracts Meet the necessary elements of validity Not necessarily made in writing to be valid – ‘Parol’ 11 Specialty Contracts Some types of contracts may require formalities such as being in the form of a signed, dated written agreement Types outlined in the Statute of Frauds A ‘Seal’ can be used to demonstrate beyond doubt that a legal transaction was intended by the parties 12 4  Module 2 ‐ LAWS‐1030 Contract of Record One which has been declared and adjudicated by a court having jurisdiction Quasi-contract (or unjust enrichment) 13 Elements of Validity Deliberate Agreement Competency Mutual Consideration Legality Voluntarily 14 A Simple, Valid Contract Therefore… Is a deliberate agreement between two (or more) competent parties, supported by mutual consideration, to do some legal act voluntarily 15 5  Module 2 ‐ LAWS‐1030 A Specialty Contract Therefore… Is a deliberate agreement between two (or more) competent parties, supported by mutual consideration, to do some legal act voluntarily, and made in writing 16 Make a Contract! With your neighbor – beside, behind, or in front... Make a contract with them satisfying the Elements of Validity! GO! 17 Forms of Agreement and Definitions 18 6  Module 2 ‐ LAWS‐1030 Forms of Categorization Contractual agreements may be defined not only as to category – but also by… 19 Defined by Origin Express Contracts Where promises are exchanged and expressed verbally or in writing at the time it is made Implied Contracts Where conduct creates the exchange of promises - Restaurant 20 Origin… Quasi-Contracts Legal obligations imposed by law. Based on the premise that it would be unjust for someone to accept the benefits of something of value from another without paying for it – so ‘unjust enrichment’ 21 7  Module 2 ‐ LAWS‐1030 Defined by Participants Two Party Contracts Involve 2 parties 22 Defined by Participants Joint Contracts Where 2 or more parties merge to create a contract with a separate 3rd party. The 2 merged parties become one to a greater or lesser degree. Joint parties must be jointly sued. EX - A and B shall pay C $100 – A and B are ‘sureties’ for one another 23 Participants… Several Contracts Where 2 or more parties merge to create a contract with a separate 3rd party but keep their individual responsibilities separate. “Several” parties must be separately sued. EX - A shall pay C $50 and B shall pay C $50 24 8  Module 2 ‐ LAWS‐1030 Participants… Joint AND Several Contracts! Where both of the above are true, but parties may be sued both jointly and separately. 25 Participants… 3rd Party Beneficiary Contracts Where 2 parties enter into a contract for the direct benefit of a 3rd party The third party beneficiary is not a party to the contract itself, but if the contract is fulfilled, the third party stands to realize a benefit EX – Life insurance policy 26 Defined by Obligation Bilateral Contracts Where there is a direct exchange of performance Two parties enter into an agreement where both parties promise to do something 27 9  Module 2 ‐ LAWS‐1030 Obligation… Unilateral Contracts A unilateral contract requires that only one party make a promise that is open and available to anyone who performs the required action Like collecting the reward for finding a lost pet 28 Void Unilateral Contract – 5:00 29 Defined by Completion Executory Contract Where obligations are imposed for future acts Ex - Contract with a general contractor for the construction of a house, for which the work is to begin in four months time 30 10  Module 2 ‐ LAWS‐1030 Completion… Executed Contract Where the exchange is completed at the time of making the agreement Example - Purchase of an appliance or a hotdog… Ummm 31 By Agency… Contracts of Agency Conferring the authority to act on behalf of one party to a 3rd party. Example: Real-estate transactions with a real-estate agent. 32 By Guarantee… Contracts of Guarantee Answering for the performance or payment of some duty in the event of failure of another who is primarily responsible for such performance or payment. EX: In Construction - Performance Bonds! 33 11  Module 2 ‐ LAWS‐1030 By Warranty… Contracts of Warranty The promise to stand behind the performance of a product or particular term of a contract. EX: Construction Warranties! 34 Time to hit the Internet! 35 Next… Find a Contract Left – Try to find an example of a 3rd Party Contract that is Voidable Middle – Try to find an example of a Joint Contract that is Valid Right – Try to find an example of an Executory Contract that is Illegal 36 12  Module 2 ‐ LAWS‐1030 Wrap Up… 37 For Next Class Go to FOL: Review Reading Assignment #2 and answer the associated questions Be prepared for Tutorial #2 38 Next Class Tutorial #2 39 13