Elements of contract law

•  This unit deals with Common Law contracts i.e. court decisions (precedents) that have been rendered primarily by judges. Contracts that are derived primarily from statute law and deal with
the sale or purchase of goods (tangible personal property) will be discussed in detail.

•  A contract is an agreement that a court will enforce; a social agreement is not enforceable because it does not create legally binding economic obligations for the parties or because the party suing has not suffered damage recognizable by a court.

•  A valid contract must contain at least these four requirements: (1) agreement, reached between at least two valid parties; (2) consideration—something of value exchanged by each party; (3) competent parties—individuals legally and mentally capable of understanding that they are making a contract; and (4) legality—not in violation of the law.

•  Contracts may be classified as bilateral or unilateral; as valid, void, voidable, or unenforceable; as formal or informal; as express or implied; and as executory or executed.

•  A quasi contract (a contract implied in law) is a court-created contract designed to prevent unjust enrichment—that is, one that prevents one person from receiving a benefit at the expense of another person.