Book Opener

UNILATERALCONTRACTSA classic example of theunilateral contract principleis a reward advertisementplaced on a bulletinboard or in a newspaper.When you read an advertisementoffering a rewardfor a lost item, a contractdoes not yet exist. Whendoes the contract comeinto existence? Whatwould happen if someonewho had never read thead found and returned thelost item?Sometimes, however, it is desirable to put contracts in writing. Awritten contract assures that both parties know the exact terms of thecontract and also provides proof that the agreement was made. A law, theStatute of Frauds, requires that certain contracts must be in writing to beenforceable. We will learn more about this law in Chapter 10.Reviewing What You Learned1. Explain the elements of legal contracts.2. What are the differences among valid,void, voidable, and unenforceablecontracts?3. What are the differences between expressand implied contracts?4. What are the differences between unilateraland bilateral contracts?5. What are the differences between oral andwritten contracts?Legal Skills in ActionElements of a Contract Your friend, Arkadi,has begun teaching contract law classes at alocal senior citizens’ center. Write a paragraphin which you explain the six elementsof a contract in a way that will help Arkadicreate his course outline. Remember toinclude information on the historical developmentof the will theory, which led to the needto develop the six elements included withinthe formalist theory of contract law.Critical Thinking ActivityHistory How did the Industrial Revolutionchange the court’s attitude toward interpretingcontract law?Chapter 5: How Contracts Arise 113