In this chapter, students will be able to understand: Explain the nature and purpose of contracts, describe the elements of a contract, distinguish applicability of common law of contracts and Art. 2 of the Uniform Commercial Code, identify non-contract obligations. | Contracts Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent 3 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Contracts Capacity to Contract Illegality Writing Rights of Third Parties Performance & Remedies 3 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Contracts P A E T R H C 9 “Contracts are agreements made up of big words and little type.” Sam Ewing, quoted in Saturday Evening Post, May 1993 Learning Objectives Nature of contracts Basic elements of a contract Basic contract types Non-contract obligations 9 - Not every promise is legally enforceable When a set of promises has the status of contract, a person injured by a breach of that contract is entitled to call on the government (courts) to force the breaching party to honor the contract Contract law is ancient law, but has evolved to reflect social change | Contracts Introduction to Contracts The Agreement: Offer The Agreement: Acceptance Consideration Reality of Consent 3 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Contracts Capacity to Contract Illegality Writing Rights of Third Parties Performance & Remedies 3 McGraw-Hill/Irwin Business Law, 13/e © 2007 The McGraw-Hill Companies, Inc. All rights reserved. Introduction to Contracts P A E T R H C 9 “Contracts are agreements made up of big words and little type.” Sam Ewing, quoted in Saturday Evening Post, May 1993 Learning Objectives Nature of contracts Basic elements of a contract Basic contract types Non-contract obligations 9 - Not every promise is legally enforceable When a set of promises has the status of contract, a person injured by a breach of that contract is entitled to call on the government (courts) to force the breaching party to honor the contract Contract law is ancient law, but has evolved to reflect social change Contracts 9 - (1) agreement (2) between competent parties (3) based on genuine assent of the parties that is (4) supported by consideration, (5) made for a lawful purpose, and (6) in the form required by law, if any See Figure 1, page 276 Elements of a Contract 9 - Example: Jackson v. Connecticut Lottery Corporation: Facts: Jackson bought a Connecticut Lotto “Quick Pick” ticket for the drawing of October 13, 1995 and won, but claimed his prize in person three days after the final day allowed to claim the prize Ticket back provided instructions for claiming the prize online and included warning that “Prize must be claimed within one year from the drawing date.” Connecticut Lottery Corporation (CLC) denied Jackson’s claim because one-year had elapsed Jackson sued for breach of contract Threshold Issue: Is the lotto ticket a contract? Trial Court Ruling: The parties did enter into a valid, unilateral contract through the purchase of a Lotto ticket CLC made a prize offer, Jackson
