Important Notes
Types of contracts
Express contract- standard contract
Implied in Fact Contract- a contract is suggested by actions from both parties
Implied in Law Contract- a quazi-contract
Contract law serves at least two functions
Not all contracts are enforced
Sources of contract law include
Common law
UCC or State statutory law
Restatements, which are summarized versions of common law, presented as persuasive authority.
Five Guys hypothetical
Subjective intent (meeting of the minds) vs. Objective intent (explicitly stated)
Which party is the least cost avoider?
Two groups are considered when making a ruling in higher courts
Contract Theroies
Autonomy Theory
The state enforces contracts to protect autonomy
It is morally imperative to enforce contracts to protect individuals’ freedom to organize their personal affairs and build trust.
An ex post adjudication theroy focused on resolving disputes between litigants
Problems
Suggests all contracts are moral obligations, yet all contracts are not upheld
It is difficult to argue why contracts are moral obligations
By extrapolation, the state should enforce all other moral obligations, which would be undesirable.
Economic Theory
Pluralist Theory
- Is an advertisement a contract?