ABSTRACT
Contracts are the basis for the free enterprise system. Chapter 5 discusses the law of contracts in that context. Basic requirements for a valid contract are explained. Types of contracts are explained and contrasted. Rules (statute of frauds) that require some contracts to be in writing are set forth in summary. The parol evidence rule that prevents the introduction of certain oral statements into evidence is explained along with the use of integration clauses in contracts to prevent subsequent oral modification of the contract. The various remedies that courts may award a winning plaintiff are explained in brief. Defenses to breach of contract actions that include impossibility, commercial impracticability, and mutual mistake are discussed. The use of liquidated damages clauses to avoid litigating the amount of damages is explained. Use of attorney fee clauses to force the losing party in a breach of contract action to pay the winners’ legal fees are explained.
