Contract Formation

Lesson:

Depreciation methods vary in terms of how quickly they start estimating the decrease in an asset's worth.

  • Express contracts are agreements in which the terms are clearly stated by the parties, either orally or in writing, at the time the agreement is made.
  • Implied-in-Fact contracts are formed by the conduct or circumstances of the parties, rather than written or spoken words. The existence of an agreement is inferred from the situation.
  • Bilateral contracts are agreements in which both parties make promises to each other. One party promises to do something in exchange for a return promise from the other party.
  • Unilateral contracts are contracts in which only one party makes a promise, and the contract is accepted by performance of the other party rather than a return promise.
  • Quasi-contracts are legal fictions in which a court imposes an obligation on a party to prevent unjust enrichment, even though no actual contract was formed between the parties.
You are explaining contract types to a business owner who needs some help.

Here are the relevant facts:

  • The buyer filled out a web form to reserve a custom-made table for $3,327, and the seller emailed a confirmation with delivery details.

Which high-level class of contract is being used in this case?

Answer:

  • Express contract

Explanation:

    Express contracts are agreements in which the terms are clearly stated by the parties, either orally or in writing, at the time the agreement is made.
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