OralandwrittencontractsAnoralcontractentailsanagreement wherethetermshavebeenmutuallyestablishedthroughspokenorverbalcommunication.oAwrittencontractreferstoaformaldocumentthatoutlinesthetermsand conditions agreed uponbetweentwopartiesenteringintoacontract
Oral and written contracts ◦ An oral contract entails an agreement where the terms have been mutually established through spoken or verbal communication. ◦ A written contract refers to a formal document that outlines the terms and conditions agreed upon between two parties entering into a contract
Bilateral andUnilateral ContractsBased on the nature of the obligations and actions involved bytheparties,therearebilateralandunilateralcontractsoBilateralcontractooftenreferredtoasa"two-sidedcontract,involvesanexchangeofpromisesorcommitmentsbetweentwoormoreparties.oUnilateralcontractalsoknownasa"one-sidedcontract",isanagreementwhenonepartymakesapromisethattheotherpartycanacceptonlybyactuallydoingsomething
Bilateral and Unilateral Contracts Based on the nature of the obligations and actions involved by the parties, there are bilateral and unilateral contracts. ◦ Bilateral contract ◦ often referred to as a “two-sided contract”, involves an exchange of promises or commitments between two or more parties. ◦ Unilateral contract ◦ also known as a “one-sided contract”, is an agreement when one party makes a promise that the other party can accept only by actually doing something
Express,Implied,andQuasi-ContractAccordingtothemodeofformationofcontractscontractsmaybeclassifiedintothreetypes:Expresscontract,impliedcontract,andquasi-contract.In anexpress contract,thepartieshave directlystated the terms oftheir contract orallyorinwriting atthe time the contract was formed.The vast majority ofcontractsareexpress contracts.(suchas awritten one)impliedoInanimpliedcontract,thewordsandconductoftheagreementtoparties indicate thattheyintended an agreement.pay.Whenthe surroundingfacts andcircumstancesindicatethatanagreementhasactuallybeenreached,LOrOMtopayPoanimpliedcontract(alsocalledacontractimpliedinhamburgfact)hasbeen created.(consume ina restaurant, seea doctor)
Express, Implied, and Quasi-Contract According to the mode of formation of contracts, contracts may be classified into three types: Express contract, implied contract, and quasi-contract. ◦ In an express contract, the parties have directly stated the terms of their contract orally or in writing at the time the contract was formed. The vast majority of contracts are express contracts.(such as a written one) ◦ In an implied contract, the words and conduct of the parties indicate that they intended an agreement. When the surrounding facts and circumstances indicate that an agreement has actually been reached, an implied contract (also called a contract implied in fact) has been created. (consume in a restaurant, see a doctor)
Quasi-contact:isacontractinwhichthereisnointentiononeithersidetomake a contract.Insuch a contract,rights andobligations arisenotfromanyagreement betweenthepartiesbutfromoperationsoflaw.Itis closer in natureto contractual obligations and quite distinctfromobligations arisingfromtort.Forthepurposeofclassification,legalscholarsorrelevant laws havelabelled itas a"quasi-contract".Case:AandBaretheparentsofC(male).DuringthemarriageofCandD,theyhadaThecoupledivorcedbyagreement,whichstatedthatEwouldberaiseddaughterE.byC,withDtopaychildsupport.However,AandB,asthegrandparents,hadbeenraising.theirgranddaughterE,long-term,whileneitherCnorDhadpaidchildsupportAandBthersuedDandCintheCourt,seekingreimbursementforthelivingandotherexpensestheyhadpaidinadvanceforE'supbringingTheCourtruledthatasgrandparents,AandBhadnolegalobligationtosupportETheiractofraisingtheirgranddaughterwasconsideredmanagementwithoutcause(awaytoformquasi-contract),andthecourtsupportedtheirclaimforreimbursement
Quasi-contact: is a contract in which there is no intention on either side to make a contract. In such a contract, rights and obligations arise not from any agreement between the parties but from operations of law. It is closer in nature to contractual obligations and quite distinct from obligations arising from tort. For the purpose of classification, legal scholars or relevant laws have labelled it as a “quasi-contract”. Case: ◦ A and B are the parents of C (male). During the marriage of C and D, they had a daughter E. The couple divorced by agreement, which stated that E would be raised by C, with D to pay child support. However, A and B, as the grandparents, had been raising their granddaughter, E, long-term, while neither C nor D had paid child support. A and B then sued D and C in the Court, seeking reimbursement for the living and other expenses they had paid in advance for E's upbringing. ◦ The Court ruled that as grandparents, A and B had no legal obligation to support E. Their act of raising their granddaughter was considered management without cause(a way to form quasi-contract), and the court supported their claim for reimbursement
Valid,Void,Voidable,andEffectiveness-PendingContractAvalidcontractisanagreementthatsatisfiesallthelegalrequirements.Insuchacontract,allpartiesarelegallyobligatedtofulfiltheircommitments.Theprimaryobjectiveofthischapteristounderstandhowtocreatealegallyvalidcontract.Avoidcontractisanagreementbetweentwopartiesthatisnot legallybinding.Oravoid contractisno contractatall.Thismeansthatthe contractcannotbeenforcedbylaw,andanyobligationsundertheagreementarenotenforceablebyacourt.AvoidablecontractoccurswhenthelawpermitsonepartytoterminatetheagreementItisavalidcontractonthesurfacebutonethatcanbeavoidedattheoptionofoneorbothoftheparties.lngeneral,contractsthatareenteredintowithfraud,coercionsignificantmisunderstanding,orwherethetermsofthecontractareblatantlyunfairareconsideredvoidablecontracts.Aneffectiveness-pendingcontractreferstoacontractinwhichtheeffectivenessisuncertainduetothelackofcertaincapabilitiesorauthoritybythepartiesinvolvedWhetherthecontractwill bedeemedvalidorvoidinthefuturedependsonwhetherthelegalagentorprincipalconfirmsitafterwards.Itmayhappenintwocircumstances:Contractssignedbyindividualswithlimitedlegalcapacitythatexceedtheirowncapacitytoactandcontractssignedbyagentsthatexceedthescopeoftheirauthority
Valid, Void, Voidable, and Effectiveness-Pending Contract A valid contract is an agreement that satisfies all the legal requirements. In such a contract, all parties are legally obligated to fulfil their commitments. The primary objective of this chapter is to understand how to create a legally valid contract. A void contract is an agreement between two parties that is not legally binding. Or a void contract is no contract at all. This means that the contract cannot be enforced by law, and any obligations under the agreement are not enforceable by a court. A voidable contract occurs when the law permits one party to terminate the agreement. It is a valid contract on the surface but one that can be avoided at the option of one or both of the parties. In general, contracts that are entered into with fraud, coercion, significant misunderstanding, or where the terms of the contract are blatantly unfair are considered voidable contracts. An effectiveness-pending contract refers to a contract in which the effectiveness is uncertain due to the lack of certain capabilities or authority by the parties involved. Whether the contract will be deemed valid or void in the future depends on whether the legal agent or principal confirms it afterwards. It may happen in two circumstances: Contracts signed by individuals with limited legal capacity that exceed their own capacity to act and contracts signed by agents that exceed the scope of their authority