CHARACTERISTICS of a Contract • Contract can have any of the following characteristics: 1) ___________, Void, ___________________, or Unenforceable 2) __________________ or Implied 3) __________________ or Unilateral 4) _____________ or Written • Contracts can have characteristics from ____________________________ of these categories • EX. A contract can be _________________________________________________________________ Valid, Void, Voidable and Unenforceable • Contracts may be Valid, Void, Voidable or Unenforceable • Valid- a contract that is _______________________________ (legally _______________) • Void- a contract ______________________________________ of the ___________________ of a contract. • • Has no ____________________________ • Ex. Contract that involves something illegal Voidable- Either party can ______________ the contract for a __________________________. • Ex. A contract between _____________________ is a voidable contract because minors have the right to ___________________________________________. (Reason why most companies require someone over 18 to sign a contract). • Unenforceable- a contract that will _______________________________________________, usually because of some rule of law. • Ex. Wait too long to sue someone for breach of contract, statute of limitations may have run out and now it is unenforceable. EXPRESS or IMPLIED • Express- a contract statement that may be ________________________________ (words are spoken between the parties) • • Most contracts are express Implied- contract that comes about from the _________________________________________ (no words are required). • Ex. You go to a gas station, hand the tenant a $20 bill. You go back to your car and pump $20 worth of gas and leave. Neither of you needed to speak to each other but it was implied that both parties entered into a contract involving exchange of gas for money. BILATERAL or UNILATERAL • Contracts may be Unilateral or Bilateral • Bilateral- __________________________ promise to do something • One party promises to do something ________________________________ for the other’s promise to ________________________________________________. • • Most contracts are bilateral Unilateral- one party promises to do something ______________________________________ _____________________________. • A person says they will sell you their car for $2,000 if you pay in cash by Friday afternoon. If you do not have the cash by then, the person is not required to keep their promise. • A ______________________________________________ is another example. The reward is only required to be given if you return whatever they are offering a reward for. ORAL or WRITTEN • Contracts can be Oral or Written • • Oral- created by _________________________________ • Both parties agree to do something, but nothing is written down • ______________________________________________________________________ Written- contract is __________________________________________ • Safer due to hard evidence of an agreement or contract • Both parties know _________________________________ due to it being in writing • _____________________________________ (a law by our government)- requires certain contracts must be in writing __________________________________________.