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Ch 6: Contract Law Basics: Help and Review

About This Chapter

The Contract Law Basics chapter of this College-Level Introductory Business Law Help and Review course is the simplest way to master the basics of contract law. This chapter uses simple and fun videos that are about five minutes long plus lesson quizzes and a chapter exam to ensure students learn the essentials of contract law basics.

Who's it for?

Anyone who needs help learning or mastering college business material will benefit from taking this course. There is no faster or easier way to learn college business topics. Among those who would benefit are:

  • Students who have fallen behind in understanding contract law terms or working with contract types
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning business content (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about contract law basics
  • Students who struggle to understand their teachers
  • Students who attend schools without extra business learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Contract Law Basics chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Contract Law Basics chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any basic contract law question. They're here to help!
  • Study With Flexibility: Watch videos on any Web-ready device.

Students will review:

This chapter helps students review the concepts in a Contract Law Basics unit of a standard college business course. Topics covered include:

  • Parties to a contract
  • Offers in contract law
  • Termination of an offer in contract law
  • Unilateral and bilateral contracts
  • Expressed vs. implied contracts
  • Executed vs. Executor contracts
  • Informal vs. formal contracts
  • Doctrine of promissory estoppel
  • Joint obligation contracts

31 Lessons in Chapter 6: Contract Law Basics: Help and Review
Test your knowledge with a 30-question chapter practice test
Parties to a Contract: Promisor, Promisee & Beneficiary

1. Parties to a Contract: Promisor, Promisee & Beneficiary

There are at least two parties involved in a contract: the promisor, promisee and, sometimes, a third party beneficiary may be named. Each party has a different obligation to the contract terms. The beneficiary in a contract generally does not have the same level of responsibility for the contract's performance.

Mutual Assent & Objective Standard in Contract Law: Definitions & Examples

2. Mutual Assent & Objective Standard in Contract Law: Definitions & Examples

Mutual assent is considered the meeting of the minds between two or more parties that forms the foundation of a contract. At the time of mutual assent, it can be said that a legally binding contract exists.

What Is an Offer in Contract Law?

3. What Is an Offer in Contract Law?

In contract law, an offer is a promise in exchange for performance by another party. An offer can be revoked or terminated under certain conditions. There are also times when an offer can be negotiated to create a counter-offer.

Termination of an Offer in Contract Law: Methods & Examples

4. Termination of an Offer in Contract Law: Methods & Examples

There are several ways in which a contract can be terminated, including performance, impossibility of performance and breach of contract. Other ways to end a contractual agreement are a bit more complicated and involve a prior commitment on the part of one or both of the parties or even revocation.

What Is Acceptance in Contract Law? - Definition, Rules & Examples

5. What Is Acceptance in Contract Law? - Definition, Rules & Examples

There are essentially six elements in a contract. Once an offer is made, the next element is acceptance. Offer and acceptance combined with consideration make for the glue that creates a binding contract.

The Mailbox Rule and Contract Law

6. The Mailbox Rule and Contract Law

The mailbox rule applies to offer and acceptance in contract law. This common law practice, by default, states that when an offer or acceptance reaches the mailbox, it means a legitimate offer has been extended or the offer has been accepted.

Sources of Contract Law: Common Law & Uniform Commercial Code

7. Sources of Contract Law: Common Law & Uniform Commercial Code

There are two sources of contract law: common law, which is based on case rulings, and statutory law, which is based on federal and state statutes. Contract law uses both common law and a set of statutory rules known as the Uniform Commercial Code.

Unilateral and Bilateral Contracts: Examples & Differences

8. Unilateral and Bilateral Contracts: Examples & Differences

There are two types of contracts: a unilateral contract and a bilateral contract. The essential difference between the two is in the parties. Unilateral contracts involve only promisor while bilateral contracts involve both a promisor and a promisee.

Expressed vs. Implied Contracts: Differences & Examples

9. Expressed vs. Implied Contracts: Differences & Examples

There are two types of contracts: an expressed contract, which states the promises in clear language, and an implied contract, which is where behaviors or actions lead parties to believe an agreement exists.

Quasi-Contract: Definition & Examples

10. Quasi-Contract: Definition & Examples

A quasi-contract exists in the absence of a written contract and may be court ordered to avoid one party gaining at the expense of another party's actions.

Executed vs. Executory Contracts: Definitions & Differences

11. Executed vs. Executory Contracts: Definitions & Differences

The main difference between an executed and executory contract is how quickly the contract's promise must be fulfilled. An executed contract must be satisfied immediately, while an executor contract has terms that will be fulfilled later.

Informal vs. Formal Contracts: Examples, Differences & Definitions

12. Informal vs. Formal Contracts: Examples, Differences & Definitions

The distinct difference between a formal contract and an informal contract is its enforceability in a court. An enforceable contract is one that contains certain elements, like offer, acceptance, and consideration, and is in written form. An informal contract does not contain the same elements and can be oral.

What Is an Option Contract? - Example & Definition

13. What Is an Option Contract? - Example & Definition

The difference between a contract and an option contract is in the options that a buyer has a right to exercise in the contract, which makes the contract a bit more flexible.

Rules of Consideration in Contract Law: Elements & Case Examples

14. Rules of Consideration in Contract Law: Elements & Case Examples

Consideration in contract law is simply the exchange of one thing of value for another. It is one of the six elements that must be present for a contract to be enforceable. Consideration must be both legally sufficient and bargained-for by the receiving party.

Legal Detriment: Definition & Example

15. Legal Detriment: Definition & Example

In contract law, a party to a contract experiences legal detriment when they perform an act the party is not obligated to perform or refrain from doing something the party has a right to do.

Lack of Consideration in Contract Law

16. Lack of Consideration in Contract Law

One of the main elements of a contract is consideration. Lack of consideration in contract law can make a contract unenforceable when both parties do not receive a benefit from entering into an agreement.

Doctrine of Promissory Estoppel: Definition, Examples & Elements

17. Doctrine of Promissory Estoppel: Definition, Examples & Elements

The doctrine of promissory estoppel allows a party to recover the benefit of a promise made even if a legal contract does not exist. Use of this doctrine relies on how significant the promisee's loss is in the absence of the fulfilled promise.

Joint Obligation Contracts:  Obligations and Promises of Parties

18. Joint Obligation Contracts: Obligations and Promises of Parties

A joint contract involves two or more parties who are jointly obligated to a contract or whom receive the benefits of the terms and conditions of a contract. There are a few ways a joint contract can be written. Each type shifts liability in a different way.

Condition Precedent: Definition, Clause & Example

19. Condition Precedent: Definition, Clause & Example

This lesson will teach you about what constitutes a condition precedent. You will review the definition, examine a clause and look at examples where condition precedents are utilized.

Contractual Capacity: Definition & Cases

20. Contractual Capacity: Definition & Cases

After you complete this lesson, you should understand what constitutes contractual capacity. In addition, you will learn about the specific categories of people who lack contractual capacity and review examples of these categories.

Indemnification Clauses: Definition & Examples

21. Indemnification Clauses: Definition & Examples

This lesson will explain what constitutes an indemnification clause, which is a type of liability clause you've probably encountered in your travels and other common activities. In addition, you will review examples of some possible indemnification clauses.

Mistake of Fact: Definition, Forms & Cases

22. Mistake of Fact: Definition, Forms & Cases

This lesson will teach you what constitutes a mistake of fact in the legal realm. You'll review the definition and form of mistakes of fact and then learn of two significant cases which demonstrate mistake of fact.

Output Contract: Definition & Example

23. Output Contract: Definition & Example

After you complete this lesson, you will have an understanding of output contracts. Moreover, you will review laws that relate to output contracts and study some examples of these types of contracts.

Privity of Contract: Definition, Exception & Cases

24. Privity of Contract: Definition, Exception & Cases

After you complete this lesson, you will know what constitutes privity of contract. You will examine some exceptions and look at cases to gain a thorough understanding of privity of contract.

Pecuniary & Non-Pecuniary Damages: Definition & Examples

25. Pecuniary & Non-Pecuniary Damages: Definition & Examples

In a case involving a civil dispute, the court will commonly award damages. In this lesson, we discuss pecuniary and non-pecuniary damages and provide examples that illustrate the difference.

What is a Chattel Mortgage? - Definition & Example

26. What is a Chattel Mortgage? - Definition & Example

So you want to buy a car but don't have the money? A secured transaction will help you with this goal, but what will you be required to give in return? A chattel mortgage will spell out the terms!

What is a Quit Claim Deed? - Definition, Examples & Types

27. What is a Quit Claim Deed? - Definition, Examples & Types

A quitclaim deed is a real property deed that transfers interest in real property to another person. In this lesson we will explore the types of quitclaim deeds and show their uses and limitations.

What is a Covenant of Seisin? - Definition & Examples

28. What is a Covenant of Seisin? - Definition & Examples

A covenant of seisin is a term used in England's feudal era that describes the type of ownership conveyed in the sale of land. In this lesson, we will explore that term and its modern day equivalent, as well as provide examples.

Verbal Contract: Definition & Law

29. Verbal Contract: Definition & Law

A verbal agreement may be an enforceable contract if certain requirements are met. In this lesson we will look at how a verbal contract stacks up to a written one, and when they have the full force of the law.

Obligation: Legal Definition, Types & Examples

30. Obligation: Legal Definition, Types & Examples

In this lesson, some different definitions of obligation are discussed. To further understand the term, examples of legal obligations and other forms of obligation are given.

Sunset Provisions in Contract Law

31. Sunset Provisions in Contract Law

In a contract, some obligations come to an end before others. In this lesson, we will learn what a sunset provision in a contract is, how it works and when it's used.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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