Exam 10: Nature and Classification

Contracts relating to real estate are governed by the common law.

Anyone can avoid a contractual obligation by claiming that he or she did not read the contract.

A payment of funds or a delivery of goods must take place for a bilateral contract to be formed.

On May 1, Ramona and Santo orally agree that Santo will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

Once an offer is made, the offeror cannot revoke it.

If one party to a contract has fully performed but the other has not, the contract is executory.

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

To avoid a contract, both parties must fully perform their respective legal obligations.

Ed, a businessperson, is a friend of Fran, the owner of Good Morning, a coffee pastries kiosk. Every day, Ed spends five minutes at the kiosk, looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon, Ed looks at the items, and picks up a $1 chocolate brownie. He waves the brownie at Fran without saying a word and walks on. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

A contract that only one of the parties can enforce in a court is not valid.

Quasi contracts are imposed on parties in the interest of fairness and justice.

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.