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's what you know:
- The seller’s dry cleaner accepted a stained suit from the buyer without discussing payment, assuming the standard fee would apply.
Which high-level class of contract is being used in this case?
Answer:
- Implied-in-fact contract
Explanation:
-
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.