What are the functions of contracts, and what distinguishes contracts from gratuitous promises (gifts)?

Can you think of any situations where a gratuitous promise should be enforced by a court? Here's a hint -- when would fairness dictate that a promise to give a gift ought to be enforced? In other words, why would it be unfair to allow someone to renege on a gift?

I wanted to also include my favorite court opinion regarding contract law, Leonard v. Pepsico, Inc., 88 F. Supp. 2d 116 (S.D.N.Y. 1999), aff'd 210 F.3d 88 (2d Cir. 2000). The court should've given the guy his fighter jet!

https://en.wikipedia.org/wiki/Leonard_v._Pepsico,_Inc.

Lastly, here are my words of wisdom when it comes to contracts: you get exactly what you bargain for -- nothing more, nothing less. Omitted terms from a contract may burn you just as hard as oppressive terms that are included in a contract. Please always try to fully understand what you are bargaining for, because ignorance is very rarely a defense.

Answer rating: 100% (QA)

Functions of Contracts 1 Establishing Legal Relationships Contracts create legally binding relationships between parties outlining their rights and ob... View the full answer