FUNDAMENTALS OF BUSINESS LAW & ETHICS
INTRODUCTION TO CONTRACTS
What is the definition of a contract? a promise that the law will enforce

4 Parts of a Contract
Agreement: one party must make a valid offer, and the other party must accept it.
Consideration: there has to be bargaining that leads to an exchange between the parties.
Legality: the contract must be for a lawful purpose.
Capacity: the parties must be adults of sound mind.

Describe the various types of contracts. bilateral: BOTH parties make a promise. This is the most common and is used for services, sale of goods and almost anything else. A promise for a promise... unilateral: ONE party makes a promise the the other party can accept only by doing something. This is a less common contract. express: In an express contract the two parties explicitly state all important terms of their agreement. This is the majority of contracts. implied: In an implied contract, the words and conduct of the parties indicate the intended agreement. This is less common. executory: one or more parties has not fulfilled obligations executed: all parties have fulfilled their obligations valid: satisfies all of the law's requirements unenforceable agreement: the parties intend to form a valid bargain but a court declares that some rule of law prevents enforcing it voidable: the law permits one party to terminate the agreement void agreement: neither party can enforce, usually because the purpose of the deal is illegal or one of the parties had no legal authority to make a contract

Identify and describe the theories of recovery in contract law. express: In an express contract the two parties explicitly state all important terms of their agreement. This is the majority of contracts. (promise explicitly made, contract) implied: In an implied contract, the words and conduct of the parties indicate