Acosta, 1

Leonardo Acosta

Dr. Delaney

Business law

April 28, 2020

Introduction to Contracts

A promise is a declaration that someone will do something or will perform

something in particular. For example, Jose promises that he will buy a car to Mario. We

will learn more about contracts, its definition, objective theory, elements, if it is bilateral

or unilateral, if it is expressed or implied when it is executed or executory, and its legal

effect. A contract is a broad definition, but today we will learn the most important of it

and how it works in our society.

A contract is an agreement between two parties. According to Dr. Delaney, a

contract is a set of promises. For the breach a contract, the law gives a remedy OR the

performance of which the law recognizes a duty. For example, if Jose accepted a

contract for painting Pedro’s house and Pedro pay in advance, but Jose never painted

the house. Pedro can sue Jose because he breaches the deal, and Jose did not respect his

promise to paint the house.

The intention drives contracts' objective theory. According to Dr. Delaney,

parties’ intentions determined by what others can observe. The theory is judge by

outward objectively interpreted by a reasonable person. The parties in a contract are the

offeror and the offeree. The offeror is who makes the offer and the offeree is who

receives the offer. Also, they are called the acceptor or the acceptee. Using the same

example above, we can say that Pedro is the offeror and Jose is the offeree because he

received the offer made by Pedro.

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The elements of a contract are offer, acceptance, and consideration. The

offeror needs an offer, and acceptance is necessary by the offeree. Also, they need to

consider the terms within the contract. For example, Mario made an offer to buy

Pedro’s computer for $300. Pedro agreed to sell his computer for $300 to Mario. The

governing laws in contracts are Uniform Commercial Code (UCC) for the sale of goods

and leases of goods, and all the other contracts are administrated by the common law

like services, real state, insure, and others.

Contracts can be bilateral or unilateral. According to Dr. Delaney, this

classification is based upon what the offeree must do to accept the offer. In a bilateral

contract, the offeree can accept via a promise to perform. This contract is created at the

moment that promises are exchanged. In class, we talk about the example of the

computer, where Fulano promises to sell his computer, and Mengano promises to pay

$300 for the computer. On the other hand, unilateral contracts occur when the offeree

accepts via performance/action. Unilateral contracts are created at the moment of the

performance—for example, a reward contract where the offer is to pay $100 for a lost

puppy. If you find the puppy, you are legally entitled to the $100 reward. Also, we talk

about the old approach and the modern approach. The old approach says that the

revocation of offer is allowed until the performance is completed. The modern

approach says that if the performance has begun then cannot revoke the offer because

the contract is created. Any change would be a breach.

Contracts can be express or implied. According to Dr. Delaney, an express

contract is the one who has its terms stated in words (verbally or written). An implied

contract is the one which terms of the contract are formed pursuant to conduct of the

parties. An implied contract needs some steps to need to be fulfilled. The first one is that

a party furnishes some goods or services. The second is that the party expected to be
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paid. The third one is that the party that receives the goods or services knows that

payment is expected. The last step is that the party that received goods or services had a

chance to reject the goods or services.

Contracts can be executed or executory. According to Dr. Delaney, an executed

contract is the one that is wholly performed, and the executory contract is the one that

still it is not entirely fulfilled by one or both parties. The legal effects of contracts are

valid, unenforceable, voidable, and void. According to Dr. Delaney, a valid contract is

the one who is legally enforceable agreement. An unenforceable contract is the one in

which a statute prohibits them from being valid. For example, when you are going to get

married, you need a writing contract that establishes that you are married because if it

does not appear in writing, the agreement is unenforceable because of a lack of writing

form.

A voidable contract is the one who can be valid or can be avoided by one or both

parties. A voidable contract can be ratified, which means that it is legally bound or can

avoid that means that it is not legally bound. For example, a contract entered into by

minors, mistakes, or duress. The last one is a void contract that has no legal force or

binding effect—for example, illegal subject matter like the sale of cocaine. In

conclusion, contracts are crucial to our society because, with them, we can make

agreements without the fear that the other party will not make their part of the

agreement.
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“I pledge upon my honor that I have neither given nor received any unauthorized aid

on this assignment.”

References

Delaney, A. (2020, April 16) Introduction to contracts. Business Law Class.

Retrieved from:

Delaney, A. (2020, April 21) Introduction to contracts. Business Law Class.

Retrieved from: https://drive.google.com/file/d/1T4br347MfJ4WdGN0bS0NF-

UyPqXFPtIAh/view