SPRING $2024$

CHAPTER SEVEN

INTRODUCTION TO CONTRACTS

OBJECTIVES:

Students should be able to:

Define a contract.

Describe the nature of contracts.

Explain the purpose of contracts.

Ensure that the six elements are present when reading or writing up a contract.

Identify the different types of contracts and apply them appropriately.

Identify the status of a contract and the effects on a particular transaction.

Be able to identify whether a contract is valid, void or voidable.

VOCABULARY:

Contract

Mutual

Competent

Express

Implied

Entire

Divisible

Void

Voidable

CONTENT:

List the six elements necessary for a contract to be valid.

What is the main difference between an express contract and an implied contract?

What is the difference between a void contract and a voidable contract?

ASSIGNMENT:

Give a simple example of a voidable contract and state why it is voidable.