Characteristics of a Contract2.01 Understanding Elements and Characteristics of a Contract

CHARACTERISTICS OF A CONTRACT• Valid, void, voidable, unenforceable

• Express or implied

• Bilateral or unilateral

• Oral or written

Valid, Void, Voidable, Unenforceable• Valid contract

Includes all elements recognized by the courts Legally binding

• Void contract Without legal effect Contracts missing one or more elements

• Voidable contract One or more parties can get out of contract for some legal reason

Contract lacks genuine assent, contracts with minors

• Unenforceable contract Contract that court will not uphold, usually because of some rule of law Statute of limitations has expired

Express or implied• Express

Contract statement that may be written or oral

• Implied Contract that comes about from the actions of the parties

Bilateral or Unilateral• Bilateral

Contains two promises Most contracts are bilateral

• Unilateral Contains a promise by only one person to do something if, and when, the

other party performs a certain act Reward offer is most common unilateral contract

Oral or written• Oral

Created by two or more people speaking to each other

• Written contract terms are written so that both parties know the exact terms Provides proof of existence for the contract Certain contract are required by the Statute of Frauds to be in writing