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LexisNexisCapsuleSummary Contracts Chapter1 SOURCESANDDEFINITIONSOFCONTRACTLAW §1.01WhatisaContract? Acontractisformedinanytransactioninwhichoneorbothpartiesmakealegallyenforceablepromise.Apromiseisacommitmentorundertakingthatagiveneventwillorwillnotoccurinthefutureandmaybeexpressorimpliedfromconductorlanguageandconduct.Apromiseislegallyenforceablewhereit: wasmadeaspartofabargainforvalidconsideration; reasonablyinducedthepromiseetorelyonthepromisetohisdetriment;or isdeemedenforceablebyastatutedespitethelackofconsideration. §1.02TypesofContracts Contractmaybeofthefollowingtypes: Express–anagreementmanifestedbywords Implied-in-fact–anagreementmanifestedbyconduct Implied-in-law("quasi-contract")–notatruecontractbutanobligationimposedbyacourtdespitetheabsenceofapromiseinordertoavoidaninjustice §1.03SourcesofContractLaw CommonLaw–inmostjurisdictions,contractlawisnotcodified,andthustheprimarysourceofgeneralcontractlawiscaselaw. Restatement–writtenbytheAmericanLawInstitutetoprovideguidancetothebenchandbar,theRestatementofContracts(currentlyinthesecondedition)hasnolegalforcebutneverthelessprovideshighlypersuasiveauthority. UniformCommercialCode(UCC)–createdundertheauspicesoftheAmericanLawInstituteandtheNationalConferenceofCommissionersonUniformStateLaws,hasbeenadoptedbyeverystateexceptLouisiana.ProposedrevisionstoArticle2,governingcontractsforthesaleofgoods,havebeenfinalizedandpresentedtothestatesforenactment. UnitedNationsConventiononContractsfortheInternationalSaleofGoods(CISG)–ratifiedbymanyoftheleadingtradingnationsincludingtheUnitedStatesandChina(butnottheUnitedKingdomandJapan),itgovernsmanytransactionsforthesaleofgoodsbetweenpartieswithplacesofbusinessindifferentnations. UNIDROITPrinciplesofInternationalCommercialContracts–non-bindingauthoritativetextsimilartotheRestatement. UniformComputerTransactionsAct(UCITA)–addressesissuesarisingoutofcomputerlicensingbuthasonlybeenenactedinVirginiaandMaryland. UniformElectronicTransactionsAct(UETA)–adoptedbymoststate

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