Previous Lecture Agreements Contracts Essentials of Valid Contract

Previous Lecture • Agreements & Contracts • Essentials of Valid Contract

Law of Contract - 2 Lecture # 4

Kinds of Contract • • Formal, Simple Quasi Contract Express & Implied Contract Valid, Voidable, Void & Unenforceable Contract • Executed & Executory Contract • Bilateral & Unilateral Contract

Formal Contract • Formal Contract – Contract under Seal (Registered) – Contract of Record (Seal of Court)

Simple Contract The evidence of which is merely oral, or in writing, not under seal, nor of record.

Quasi Contract A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal contract requires two parties to consent to mutually agreeable terms. Under a quasi contract, neither party is originally intended to create an agreement. Instead, an arrangement is imposed by a judge to rectify an occurrence of unjust enrichment.

Express & Implied Contract • Express Contract – Stated in Words, Spoken or Written • Implied Contract – By the Conduct of the Parties

Valid, Voidable, Void & Unenforceable Contract • Valid Contract – Enforceable • Voidable Contract – Lack of Essentials • Void Contract – No legal effect • Unenforceable Contract – Lack of Formalities (Sale of Land - in Writing)

Executed & Executory Contract • Executed – Completely Performed • Executory – Something still remain to Perform

Bilateral Contract The more common of the two, a bilateral contract, is an agreement in which each of the parties to the contract makes a promise or promises to the other party. For example, in a contract for the sale of a home, the buyer promises to pay the seller Rs. 200, 000 in exchange for the seller's promise to deliver title to the property.

Unilateral Contract In a unilateral contract, only one party to the contract makes a promise. A typical example is the reward contract: A promises to pay a reward to B if B finds A's dog. B is not obliged to find A's dog, but A is obliged to pay the reward to B if B finds the dog. In this example, the finding of the dog is a condition precedent to A's obligation to pay.

Difference between bilateral and unilateral contracts At first glance, the most obvious difference between bilateral and unilateral contracts is the number of people or parties promising an action. Bilateral contracts need at least two, while unilateral contracts only obligate action on one part. The other differences might be a bit more subtle. Look at what's being offered. In unilateral contracts, one offering the deal promises to pay when a certain act or task is complete, but bilateral contracts allow for an upfront exchange.

Next Lecture Contract – 3 Mo. A, Mo. U & Contract