CHARACTERISTICS of a Contract
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Contract can have any of the following characteristics:
1) ___________, Void, ___________________, or Unenforceable
2) __________________ or Implied
3) __________________ or Unilateral
4) _____________ or Written
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Contracts can have characteristics from ____________________________ of these categories
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EX. A contract can be _________________________________________________________________
Valid, Void, Voidable and Unenforceable
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Contracts may be Valid, Void, Voidable or Unenforceable
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Valid- a contract that is _______________________________ (legally _______________)
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Void- a contract ______________________________________ of the ___________________
of a contract.
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Has no ____________________________
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Ex. Contract that involves something illegal
Voidable- Either party can ______________ the contract for a __________________________.
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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).
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Unenforceable- a contract that will _______________________________________________,
usually because of some rule of law.
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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
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Express- a contract statement that may be ________________________________ (words are
spoken between the parties)
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Most contracts are express
Implied- contract that comes about from the _________________________________________
(no words are required).
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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
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Contracts may be Unilateral or Bilateral
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Bilateral- __________________________ promise to do something
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One party promises to do something ________________________________ for the
other’s promise to ________________________________________________.
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Most contracts are bilateral
Unilateral- one party promises to do something ______________________________________
_____________________________.
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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.
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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
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Contracts can be Oral or Written
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Oral- created by _________________________________
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Both parties agree to do something, but nothing is written down
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______________________________________________________________________
Written- contract is __________________________________________
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Safer due to hard evidence of an agreement or contract
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Both parties know _________________________________ due to it being in writing
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_____________________________________ (a law by our government)- requires
certain contracts must be in writing __________________________________________.