American InterContinental University
What is a Contract
A contract is when two or more
individuals make an written or oral
agreement for legal consideration on a
legal subject matter which is bound by
Elements that Form a Contract
Offer – when a party (offeror) indicates the
willingness to enter into an agreement on
certain specified terms.
Acceptance – this is when the offeree agrees
to the terms of the contract.
Consideration – this is the last thing you need
in a contract and this means in the eyes of the
law, whenever a bargain is made the bargain or
benefit must have some sort of value.
Difference between Express and
An express contract is
clearly stated and all
contract terms are
parties should provide
and agree on the terms
of the contract. This
contract can be a oral
or written agreement.
An implied contract is
when the agreement
isn’t stated clearly
either written or
orally and therefore
the court will
contract exists based
on the actions of the
Unilateral and a Bilateral
contract is when
someone makes an
offer and a person
who does the deed
in which the offer
was made is known
as the offeree.
(returning lost cat
A bilateral contract
is when two people
makes promises to
perform an act.
promises to pay
and the other
person promises to
perform the act.
A void contract is a contract that has
never met the requirements to become a
valid contract according to the law.
A voidable contract is a contract where
either of the parties of the contract can
void if any defects are found.
Examples of Valid Consideration
Cleveland agrees to exchange his
headphones to James for his remote
control car, is an example of exchanging
Cleveland pays William for his services of
mowing his lawn , is an example of
mutual exchange of services.
Cleveland hires Orkin Pest Control to
come and spray his home, is another
example of mutual exchange of services.
Uniform Commercial Code
The UCC is a code that was published in
1952 and has been revised a number of
times throughout the years. They are
laws that provide legal rules governing
business and commercial dealings and
The UCC regulates commerce or trade on
a national basis and would not affect
international commerce until the
products or goods reach the United
Editorial Board. (2012). Introduction to Business Law. In E. Board, Introduction to Business Law (p. 117-118, 128), Words of
Law for Non-Lawyers. 2002, p9-60. 52p. , Database: Business
Lunenburg, Fred C. FOCUS on Colleges, Universities & Schools. Dec2011, Vol. 6 Issue 1, p1-4. 4p.
USLegal. (2010-2014). Uniform Commercial Code. Retrieved
4/10/2015 from http://uniformcommercialcode.uslegal.com/
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