Basic Concepts of Contracts
What is a contract?
Legally binding agreement
What passes between parties?
Consideration
Name two types of contracts.
Simple and specialty
Is an agreement always binding?
No
Is every agreement a contract?
No
Define a simple contract.
Informal agreement between parties
What makes a contract enforceable?
Consideration and agreement
Define agreement in simple terms.
Mutual understanding between parties
How can simple contracts form?
Oral, written, implied actions
What is required for consideration?
Something of value exchanged
Why is consideration important?
Makes contract legally binding
What is a specialty contract?
Formal signed legal contract
Define consideration in contracts.
Price paid for promise
What happens without consideration?
No valid contract
Give one specialty contract example.
Sale of land