Important Notes
Types of contracts
- Express contract- standard contract
- Implied in Fact Contract- a contract is suggested by actions from both parties
- Mutual agreement, intent to promise
- Implied in Law Contract- a quazi-contract
Contract law serves at least two functions
- Gap filling- filling in the unspecified details in a contract
- Sorting
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
- This group
- Next group
Contract Theroies
- Theories explain why our nation allows the state to enforce contracts
- 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
- The state enforces contracts to create good incentives
- An ex ante theory focusing on the future
- Problem
- Doesn’t consider the past and fairness
- Pluralist Theory
- The state enforces contracts to protect autonomy, to provide incentives, and to maintain fairness
- Fairness is to protect the party least able to defend itself
- Is an advertisement a contract?
No comments:
Post a Comment