Types of Contracts

Types of Contracts

Bilateral v. Unilateral.

Bilateral - Offeree must only promise to perform (“promise for a promise”).

Unilateral - Offeree can accept the offer only by completing the contract performance (“promise for an act”).

Irrevocable: Offer cannot be revoked once performance has begun.

Express v. Implied In Fact.

Express: Words (oral or written).

Implied In Fact: Conduct creates and defines the terms of the contract. Requirements:

Ø PL furnished good or service

Ø PL expected to be paid

Ø DEF had chance to reject and did not.

Case 9.1: Homer v. Burman (2001).

Quasi Contracts - Implied in law.

Ø Fictional contracts created by courts.

Ø Imposed on parties for the interest of fairness and justice.

Ø Equitable remedies.

Ø Quantum Meruit. 

Case 9.2: Industrial Lift v. Mitsubishi (1982).

Formal v. Informal.

Executed v. Executory.

Executed - A contract that has been fully performed on both sides.

Executory - A contract that has not been fully performed on either side.