Contract Law

Chapter 1 - Overview of Contracts
Lecture Notes

Overview of Contracts 

            The purpose of this chapter is to give the student an overview of all of contract law.  It is an introduction to all of the topics that will be discussed in detail in the subsequent chapters and is intended merely as an introduction to the subject matter.  
            Every chapter starts with a Chapter Overview that directs the student to the most important matters that are going to be discussed in the remainder of the text. By having the overview, the student is given some familiarity with the subject matter before it is discussed in detail; because the material already has been presented, the complete chapter does not appear to be so formidable.
            This chapter highlights the six requirements to create a valid contract.  Every statement of law is followed by one or more examples, giving practical meaning to the black letter law just presented.  Every example comes from a real life situation, and several are taken from judicial decisions and notorious events.  No reference is made to specific case law in the main body of the text because paralegal students, unlike law students, are not used to determining law from judicial opinions, and constant case references tend to confuse the students.  However, specific cases are discussed at the end of each chapter so that the “case method, of instruction can be incorporated into the course.
            Classifications of Contracts, Section C, provides a menu of all possible configurations of contracts, classified by type of obligation, method of creation, form, timing, and enforceability.  This section provides a good starting point for discussing the validity and enforceability of contractual agreements.  Most lay persons believe that the only “real” contract is a written contract, and that all written contracts can be enforced.  By analyzing the classifications given here, the student is exposed to a wider intellectual concept with respect to legal relationships.  The examples also provide good points of discussion, especially with respect to unilateral versus bilateral contract to unilateral versus bilateral contracts.  The student now begins to realize that most of his or her day-to-day relationships involve some aspect of contract law. 
            The chapter continues with a section on Sample Clauses.  These clauses highlight various ways in which the subject matter discussed in the chapter may appear in a real life situation.  This section provides both a basis for a discussion of contract drafting and a discussion of how each clause fits into the material previously discussed.  Every sample includes some analysis, which can be the focus of classroom discussion.
            The Chapter Summary is divided into two main sections.  The first section is a prose recapitulation of the material covered in the chapter.  This recapitulation reinforces the material learned throughout the chapter and provides the student with a quick review.  The second section is a Synopsis, which acts an outline of the text.  Most paralegal students like to be given an outline of the course material, and BASIC CONTRACT LAW FOR PARALEGALS provides such an outline.  The outline can be used during the classroom discussion so that class notes can be interlineated with the Synopsis, giving the student the ability to listen to the lecture rather than taking notes all of the time.
            The Chapter Summary is immediately followed by a mini-glossary, called Key Terms, which is a listing of the terms discussed in the chapter.  Because precision of language is crucial to the practice of law, it is important that the students be able to use and define legal terms correctly.  Not only does the Key Terms section provide a quick reference to the terminology, but it also acts as a review of the material presented, giving additional reinforcement of the knowledge gained.
            The chapter includes five Exercises.  Question 1 requires the student to analyze how bilateral contracts influence his or her own life.  Questions 2 and 3 involve discussing some principles highlighted in the main part of the chapter.  Question 4 requires the student to draft a simple contract.  The last question is one that has no right or wrong answer but asks the student to expand the general principles of the chapter into the larger concept of proof.  Students always want to know how something can be proven — this question gives them the opportunity to come to their own conclusions and exemplifies the importance of noting all circumstances surrounding the creation of a contractual relationship.   
          The chapter provides two Cases for Analysis, which are judicial decisions that are reprinted in whole or in part.  These cases are introduced by a few sentences that indicate the important points discussed in the chapter that the cases highlight, and each case is followed by questions that can be used for a class discussion or as written homework assignments.        
            The Casale case discusses the differences between express and implied contracts and promissory estoppel. The court explains how the law cannot redress every act of unfairness.
McCabe v ConAgra Foods, Inc. distinguishes between a bilateral and unilateral contract and indicates how a breach of contract claim should be asserted in court.