About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
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.
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.
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.
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.
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.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Business Law: Help and Review course
- History of American Law: Help and Review
- Sources of Law: Help and Review
- Constitutional Law: Help and Review
- American Legal Systems: Help and Review
- Legal Procedures: Help and Review
- Capacity in Contract Law: Help and Review
- Contract Law and Third Party Beneficiaries: Help and Review
- Contracts - Assignment and Delegation: Help and Review
- Contracts - Statute of Frauds: Help and Review
- Contracts - Scopes and Meanings: Help and Review
- Contracts - Breach of Contract: Help and Review
- Contracts - Discharge of Contracts: Help and Review
- The Legal Environment: Help and Review
- Securities and Antitrust Law: Help and Review
- Property Law: Help and Review
- Employment and Labor Law: Help and Review
- Creditors' Rights: Help and Review
- Product Liability and Consumer Protection: Help and Review
- International Business Law: Help and Review
- Torts in Business Law: Help and Review
- The Role of Agency in Business Law: Help and Review
- Types of Business Organizations: Help and Review
- Sales & the Law: Help and Review
- Small Business Employment Law
- Consumer Protection
- Essentials of Contract Law
- Moral Philosophies & Business Ethics
- Antitrust Laws in Business
- International Trade & Business Law