Contracts

08/23

a society needs a way to deal with situations which arise from property rights.
 Exchanges between people- ie tangible or intangible property
o Protects expectations that arise between when the agreement is
formed to when it is carried out.

Contracts: an agreement between at least two people to do something in the future

that has legal effect/ that the law will enforce.

Sources of contract law: a common law subject. Contracts fall into state law
jurisdiction, not federal courts.
 Restatement- a highly persuasive collection of common law cases.
 Statutes- UCC- a transaction for goods. States have adopted the UCC for the
sale of goods, so there is legal statute that governs over such things. Every
state except for Louisiana has adopted the UCC.

Class overview:
What is the applicable law? State or UCC?
Formation of questions- offer and acceptance. Consideration (there should be
some quid pro quo, something going in each directions) Formation defects-
coercion, underage
Terms- written or verbal. Interpretation.
Performance- did the parties carry out what they promised to do?
Excuses/defenses: why didn’t they carry out what they promised to do?
Remedies
Third party issues: if the contract is between more than two parties, or if someone
else relies on the contract and is effected by it not going through.