to Contracts

1
CHAPTER 10
Introduction to Contracts
2
CONTRACTS

• Introduction
• Agreement
• Consideration
• Remedies
• All with a splattering of legality, capacity,
  consent, legal requirements, performance

3

• K

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CONTRACT

• A PROMISSORY AGREEMENT BETWEEN TWO OR MORE
  PERSONS THAT CREATES, MODIFIES, OR DESTROYS A
  LEGAL RELATIONSHIP
• 
  Buffalo Pressed Steel Co. v Kirwan 138 Md. 60

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CONTRACT

• AN AGREEMENT BETWEEN TWO OR MORE PARTIES,
  PRELIMINARY STEP IN MAKING OF WHICH IS OFFER BY
  ONE AND ACCEPTANCE BY OTHER, IN WHICH MINDS OF
  PARTIES MEET AND CONCUR IN UNDERSTANDING OF TERM.
• Lee vs. Travelers Ins. Co. of Hartford, 173.S.C.
  185

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CONTRACTS

• Definition
• A promise that the law will enforce.

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PURPOSE OF CONTRACTS

• Contracts exist to make business matters more
  predictable.

8
JUDICIAL ACTIVISM VSJUDICIAL RESTRAINT

• Judicial restraint makes the law less flexible
  but more predictable.
• Judicial activism makes the law more flexible but
  less predictable.

9
DEVELOPMENT OF CONTRACT LAW

• Common law requirements
• Later, some payment was required.
• Mutual promises became enforceable.
• By the 1900s, courts began to consider fairness.

10
ELEMENTS OF A CONTRACT

• Agreement
• Consideration
• Legality
• Capacity

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TYPES OF CONTRACTS
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TYPES OF CONTRACTS (contd)

• Bilateral
• Unilateral

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TYPES OF CONTRACTS (contd)

• Express
• Implied

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TYPES OF CONTRACTS (contd)

• Executory
• Executed

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TYPES OF CONTRACTS (contd)

• Valid
• Unenforceable
• Voidable
• Void

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PROMISSORY ESTOPPEL

• Even when there is no contract, a plaintiff
  may use promissory estoppel to enforce the
  defendants promise.

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PROMISSORY ESTOPPEL

• The defendant made a promise knowing that the
  plaintiff would likely rely on it.
• The plaintiff did rely on the promise and
• The only way to avoid injustice is to enforce the
  promise.

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QUASI-CONTRACT

• Even when there is no contract, a court may use
  quasi-contract to compensate a plaintiff.

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REQUIREMENTS FOR QUASI-CONTRACT

• Plaintiff gave some benefit to the defendant.
• Plaintiff reasonably expected to be paid for the
  benefit and the defendant knew this and
• The defendant would be unjustly enriched if she
  did not pay.

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QUASI-CONTRACT DAMAGES

• The damages awarded are called quantum meruit.

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SOURCES OF CONTRACT LAW

• Common Law
• Uniform Commercial Code
• Restatement (Second) of Contracts

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CONTRACTS

• ARE A PROMISE THE LAW
• WILL ENFORCE.
• EXIST TO MAKE BUSINESS MATTERS MORE PREDICTABLE.