26100 Study Guide - Final Guide: Punitive Damages, Liquidated Damages, Specific Performance
Document Summary
Formal contract must be in a particular form but do not have to possess consideration. Simple contract is not required to be in any particular form but is required to have consideration. It can be word of mouth or writing and needs consideration. Void a void contract has no legal effect and does not create legal rights and obligations. (not valid at all, ex: 1 year old girl cannot make with 52 years old adult) Voidable a contract is voidable where, although valid at inception, one of the parties to the contract has the right to affirm or avoid the contract at that party"s action. Unenforceable the contract can be unenforceable if the contract which in substance is valid, but because of some technical defect, one or both parties cannot enforce the contract in court. As a result, the contract would be a verbal contract which under statute is required to be evidenced in writing.
