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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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