What is a contract?
A contract is legally enforceable agreement involving an offer, acceptance, and consideration between two or more parties.
Bilateral contract vs Unilateral Contract
A bilateral contract involves promise for promise, while a unilateral contract involves a promise in exchange for performance.
What is an Express vs. Implied (infact and inlaw) Contract
Contracts may be express or implied-in-fact, both requiring mutual assent and consideration. An implied-in-law contract is not a true contract but prevents unjust enrichment.
Consideration
Consideration requires a bargained-for exchange where each party incurs a legal detriment or benefit. Past consideration is not valid.
Promissory estoppel
Promissory estoppel applies when there is a promise, reasonable reliance, and injustice can only be avoided by enforcement.
Statute of Frauds
Certain contracts must be in writing, including suretyship, marriage, contracts not performable within one year, land contracts, and sale of goods over $500.
Third-Party Beneficiaries
An intended beneficiary may enforce a contract once their rights vest, which occurs upon reliance, assent, or filing suit.
Assignment & Delegation
Contract rights may be assigned unless it materially changes duties. Duties may be delegated unless the contract prohibits it or involves special skill.
Breach
A breach occurs when a party fails to perform. A material breach excuses the other party’s performance; a minor breach allows recovery of damages.
Remedies
Expectation damages put the plaintiff in the position they would have been in had the contract been performed. Other remedies include reliance and restitution.
