General Intro | Contracts | Contract Definition, What is a Promise, Legal Enforceability

Summary

Professor Tracy introduces the concept of contracts through the lens of promises. She explains that a contract is a promise or set of promises recognized by law, enforceable through legal remedies. Key elements of a promise include a clear intention to act or refrain from acting, communicated outwardly to justify a promisee's understanding of commitment. The video distinguishes between contractual promises, which are part of an exchange and thus legally enforceable, and gratuitous promises, which lack legal enforcement unless fulfilled. This foundational lesson sets the stage for deeper exploration into contract law.

Takeaways

• 📚 A contract is legally defined as a promise or set of promises, enforceable by law when a breach occurs.
• 🗣️ The core of a contract is a 'promise', which is a commitment to perform or refrain from performing a specified action.
• 👤 The person making the promise is known as the 'promisor', and the person to whom the promise is made is the 'promisee'.
• 💡 A promise in law must be a clear intention to act or refrain from acting in a specified way, communicated to the promisee.
• 🗣️ For a promise to be legally recognized, it must be outwardly expressed, not just an internal thought.
• 🔍 The legal system uses three main tools to interpret promises: ordinary meaning of words, technical meaning where applicable, and surrounding circumstances.
• 💭 The intention to act or refrain from acting is crucial; a promise must be specific and not just a hope or general statement.
• 💬 Promises can be made verbally, in writing, or inferred from conduct, depending on the context and clarity of the commitment.
• 📜 Not all promises are legally enforceable; only 'contractual' promises, which are part of an exchange or have consideration, are typically enforceable by law.
• 🎓 A 'gratuitous' or 'naked' promise, made without expectation of something in return, is generally not legally enforceable unless other conditions are met.
• 🏛️ The script introduces an analytical framework for understanding contracts, starting with formation, moving through defenses, interpretation, breach, and remedies.

Q & A

What is the legal definition of a contract according to the script?

A contract is defined as a promise or a set of promises for which the law recognizes either a duty or provides a legal remedy in case of a breach, which is the failure to fulfill the promise.

What are the key elements to consider when determining if a statement is a legal promise?

The key elements include a manifestation of intention to act or refrain from acting in a specified way, made in a manner that would justify a promisee in understanding that a commitment has been made.

Who are the 'promisor' and 'promisee' in the context of a promise?

The 'promisor' is the person making the promise, while the 'promisee' is the person to whom the promise is made.

How can a promise be manifested according to the script?

A promise can be manifested through spoken or written words, or it can be inferred from conduct, depending on the surrounding circumstances.

What is the difference between a contractual promise and a gratuitous promise?

A contractual promise is part of an exchange, usually involving a return promise or performance, and is legally enforceable. A gratuitous promise, on the other hand, is not part of an exchange and is generally not legally enforceable.

What is 'consideration' in the context of contract law as discussed in the script?

Consideration is a return promise or performance given in exchange for a promise, which makes the promise contractual and legally enforceable.

How does the script explain the enforceability of a promise in a legal sense?

The script explains that not every promise is legally enforceable. A promise is enforceable if it is part of a contract, which typically involves an exchange and provides for legal remedies in case of breach.

What are the three interpretive tools used to determine if a promise is a commitment?

The three interpretive tools are: giving words their ordinary meaning, using technical meanings for specific terms, and considering all surrounding circumstances to understand the intention behind the promise.

What is an example of a gratuitous promise provided in the script?

An example of a gratuitous promise is when Bob says, 'I promise to take you to Disney World over winter break,' without expecting anything in return, making it a naked promise that is not legally enforceable.

How does the script suggest determining whether a promise is part of an exchange?

The script suggests that a promise is part of an exchange if there is a return promise or performance, which is indicative of a contractual relationship and makes the promise legally enforceable.

Outlines

00:00

📚 Introduction to Contracts

Professor Tracy begins an introductory lesson on contracts by defining a contract as a promise or set of promises recognized by law. The focus is on understanding what constitutes a promise, which is the foundational element of a contract. Using the example of Bob promising to take Barb to Disney World, the professor explains the roles of the promisor (the one making the promise) and the promisee (the one to whom the promise is made). The legal definition of a promise is explored as a manifestation of an intention to act or refrain from acting in a specified way, which justifies the promisee's understanding of a commitment being made. The paragraph emphasizes the importance of the promise as the building block of a contract and the need to break down the legal definition into understandable elements.

05:03

🗣️ Manifestation of Intention

This section delves deeper into the concept of a promise as a manifestation of intention. The professor explains that a promise must be outwardly expressed, not just a thought kept in one's head. Using Bob's promise to Barb, the professor clarifies that for a statement to be a promise, it must show an intention to act or refrain from acting in a specific way. The paragraph distinguishes between a mere expression of hope, which does not constitute a promise, and a commitment, which does. The key element is whether a reasonable person in the shoes of the promisee would understand that a commitment has been made. The professor introduces three interpretive tools: ordinary meaning, technical meaning, and surrounding circumstances, which are crucial for determining the intention behind a promise.

10:05

🔍 Interpreting Promises

The paragraph discusses the tools used to interpret whether a promisor intends to make a commitment. It emphasizes the importance of giving words their ordinary meaning, using technical meanings for industry-specific terms, and considering all surrounding circumstances. The professor provides examples to illustrate how these tools are applied. For instance, the word 'swear' in a promise implies a commitment, while 'hope' does not. The concept of 'extra magic hour' at Disney is explained as a technical term that requires understanding within the context of a Disney resort. The paragraph underscores the need to objectively interpret a promisor's intention based on how a reasonable person would perceive the promise.

15:05

💬 Methods of Making a Promise

This section outlines the various ways a promise can be made, which include spoken words, written words, or inferred from conduct. The professor explains that a promise can be verbal or in writing, and it can also be implied through actions. Examples are given to illustrate each method, such as Bob verbally promising to take Barb to Disney World or writing her a letter making the same promise. The paragraph also touches on the more nuanced aspect of inferring a promise from conduct, suggesting that context and surrounding circumstances are essential for understanding whether an action constitutes a promise.

20:07

📉 Contractual vs. Gratuitous Promises

The focus of this paragraph is on distinguishing between contractual and gratuitous promises. Contractual promises are those that are legally enforceable and are part of an exchange, often involving a return promise or performance. The professor uses the example of Bob promising to take Barb to Disney World if she earns an 'A' in contracts, which constitutes a contractual promise because it is part of a reciprocal agreement. In contrast, gratuitous promises, which are made without expectation of anything in return, are generally not legally enforceable. The paragraph highlights the importance of consideration in making a promise contractual and the implications for legal enforceability.

25:09

🏛️ Contract Formation and Consideration

The final paragraph provides an overview of the contract formation process and the role of consideration. It introduces an analytic framework for understanding contracts, which includes contract formation, defenses, interpretation, breach, and remedies. The professor emphasizes that not all promises are legally enforceable, and the presence of consideration is crucial for determining if a promise is contractual. The paragraph sets the stage for further exploration of contract law by outlining the foundational concepts and the importance of exchange in creating legally binding agreements.

Keywords

💡Contract

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of the agreement. In the video, contracts are defined as a promise or a set of promises for which the law recognizes a duty or provides a remedy in case of breach. The concept of a contract is foundational to the video's theme of understanding how promises are legally enforceable.

💡Promise

A promise, as discussed in the video, is a commitment to perform or refrain from performing a specified action. It is the building block of a contract. The video emphasizes that a promise must be manifested, indicating an intention to act or not act in a certain way, and must be understood by the promisee as a commitment.

💡Promisor

The promisor is the party making the promise in a contract. The video uses the example of Bob, who promises to take Barb to Disney World, to illustrate the role of the promisor. The promisor's actions and words are crucial in determining the existence and nature of a contract.

💡Promisee

The promisee is the party to whom the promise is made. In the video's narrative, Barb is the promisee because Bob's promise is directed towards her. The promisee's understanding and reaction to the promise are important in assessing whether a contract is formed.

💡Manifestation

A manifestation, in the context of contracts, refers to the outward expression of an intention to act or not act in a specified way. The video explains that a mere thought is not enough; the intention must be communicated through speech, writing, or other means for it to be considered a manifestation.

💡Intention

Intention, as used in the video, refers to the promisor's plan or resolve to do or not do something specific. It is a key element in forming a promise. For example, when Bob says he will take Barb to Disney World, his intention is to perform the specified action of taking her there.

💡Consideration

Consideration is something of value exchanged between parties that supports the formation of a contract. The video explains that a contractual promise is typically made in return for consideration, which could be a return promise or performance. For instance, if Barb promises to earn an 'A' in exchange for Bob's promise to take her to Disney World, her promise serves as consideration.

💡Contractual Promise

A contractual promise is a promise that is legally enforceable, usually because it is part of an exchange involving consideration. The video discusses how contractual promises are the basis for enforceable contracts, unlike gratuitous promises that lack consideration and are generally not enforceable.

💡Gratuitous Promise

A gratuitous promise is a promise made without expecting anything in return, which is typically not legally enforceable. The video uses the example of Bob promising to take Barb to Disney World without any condition or expectation of a return action from Barb, illustrating a gratuitous promise.

💡Legal Duty

Legal duty refers to the obligation imposed by law to perform or refrain from performing certain actions. In the context of the video, a contract creates a legal duty on the promisor to fulfill their promise, and if they fail to do so, the law provides remedies such as damages or specific performance.

💡Breach

Breach of contract occurs when a party fails to fulfill their promise or obligation under a contract. The video mentions breach as a failure to perform the promised action, which can lead to legal remedies. For example, if Bob fails to take Barb to Disney World as promised, he would be in breach of their contract.

Highlights

A contract is defined as a promise or set of promises recognized by law, which can be legally enforced.

The law of contracts begins with understanding what constitutes a promise, which is a foundational element of a contract.

The person making the promise is termed the promissor, and the person to whom the promise is made is the promisee.

A legal promise is a manifestation of an intention to act or refrain from acting in a specified way, made to justify the promisee's understanding of a commitment.

A promise must be outwardly expressed, not just an internal thought, to be considered a manifestation of intention.

The intention behind a promise must be to act or refrain from acting in a specified way, which is a key element for a promise to be legally recognized.

The third element of a promise is that it must be made in a way that justifies the promisee's understanding that a commitment has been made.

The use of certain words like 'swear' or 'guarantee' can indicate a stronger commitment and thus a legally enforceable promise.

The ordinary meaning of words and the technical meaning of terms within a specific context are crucial for interpreting the intent behind a promise.

Surrounding circumstances can provide context to understand the intent of a promissor, especially when the language used is ambiguous.

A promise can be made through spoken words, written words, or inferred from conduct, each having different levels of enforceability.

Not every promise is legally enforceable; only those that are part of an exchange, known as contractual promises, typically are.

Gratuitous or naked promises, which are made without expectation of something in return, are generally not legally enforceable.

The concept of consideration is introduced as a return promise or performance that makes a promise contractual and thus legally enforceable.

An analytical framework for contract law is presented, outlining the stages from formation to breach and remedies.

The importance of distinguishing between contractual and gratuitous promises for legal enforceability is emphasized.

Transcripts

hey all this is professor tracy from law

simply explained with an introductory

lesson to

contracts

so our starting place here is to talk

about a promise and you might say well

why is that because when we look at the

legal definition of a contract we're

told that a contract is a promise or a

set of promises and we'll dive into the

latter half of the definition in just a

minute but it tells us that the it's a

promise or a set of promises for which

the law recognizes either a duty or it

recognizes that a breach meaning the

failure to fulfill that promise should

be given some sort of legal remedy and

so our starting place when we think of

contracts and the law of contracts is to

ask ourselves what is a promise because

that's the building block of a contract

and so when we think about a promise we

need to get some terminology out of the

way and to do that we're gonna have bob

and barb help us out here so if bob says

barb

i will take you to disney world over

winter break

then we know that that's a promise right

just like in everyday speech when we

tell somebody i will do x y and z that's

a promise it's a commitment to do

something in here bob is saying i will

take you barb to disney world over

winter break and so that's no different

under the law we're going to break it

down in a little more detail in a second

but it's still a promise and because

we're not very inventive in the law or

very creative we say that the person

making the promise is the promissor and

the person to whom that promise is made

is the promise c

and

we then need to say well what is the

legal definition of a promise

and we're told that a promise is a

manifestation of an intention to act or

refrain from acting in a specified way

so made as to justify a promisee and

understanding a commitment has been made

that's a lot going on there right and

unlike a class like criminal law or

torts which is kind of necessarily and

and broken down into elements we need to

break this down ourselves so we need to

chunk it and break it up into elements

and so we can say well what's the first

element the promisism has it's a

manifestation of an intention an

intention to do what to act or refrain

from acting in a specified way

and it means that it's so made as to

justify a promisee remember that's the

person to whom the promise is made in

understanding that a commitment has been

made so let's look at each of those

elements

so the first one is it's a manifestation

of an intention

so what do we mean by that well here if

bob is just thinking

i will take barb to disney world over

winter break

that's something that's just in his head

it's a thought that he's having it's not

a manifestation when we use the word

manifestation we mean something that is

outwardly expressed

not something that's just kept in my

head but something i have vocalized or

written or but somehow outwardly

expressed to someone else

and so here if bob is saying nothing but

just thinking in his head then we don't

have a manifestation and when we say an

intention we mean that the the person is

manifesting that they'll do something in

particular so if bob says barb i will

take you to disney world over winter

break he is now

speaking

outwardly expressing outwardly through

spoken word that he will do something

right he has an intention

to do a particular thing here that is

that he will take barb to disney world

over break

so that is in fact a promise because

it's a he has a manifestation of

intention and the other elements will be

met as well and we'll look at those in

just a second so it's an intention to do

what to act or refrain from acting in a

specified way

so if bob says

i promise

you that disney world won't be too

crowded

well there that is not a promise by bob

to act or refrain from acting in a

specified way right when bob says i

promise you that disney world won't be

too crowded

that is not

bob

committing to do a particular thing or

not to do a particular thing that's him

promising something over which he really

doesn't have any control at all he's

just saying i promise it won't be too

crowded but that's not an intention

to do something or not do something in

particular so

it may not even satisfy element one it's

certainly a manifestation of spoken word

but it's not really an intention to act

or refrain from acting in a specified

way but if bob says

i won't eat the chili this time

then that is bob

is speaking not only an outward

manifestation

to

but to also to act or not act in a

specified way here it's to not eat the

chili so now we have again a promise

right because we can

say that he is outwardly manifesting an

intention to act or refrain from acting

in a specified way

so

that those elements are satisfied and we

have the third element it where the

promise must be so made as to justify a

promisee remember that's the person to

whom the promise is made and

understanding that a commitment has been

made

so here one of the important things to

know about this element as we look at it

and

bob is saying

i hope we can do the haunted mansion

ride

he we can look at this and go well it is

an outward manifestation

uh but it's not of an intention

to act or not act in a perfect way in a

particular way he's not making a

commitment right he's using the word i

hope this is something we can do he's

not saying we will do this or i promise

that we will ride the haunted mansion

ride he's he's not doing that so here

that the third element wouldn't be

satisfied but the thing to understand

about this third element of so made as

to justify a promisee and understanding

that a commitment has been made is that

we're asking how would a reasonable

person in the shoes of the promise see

hear barb

would they understand this expression

from bob would they understand that a

commitment has been

made and here the answer is no because

of the word that he's using and just a

second we'll say well how exactly we do

we determine that

so the thing to know just right here is

we're not looking at what bob in his

head thinks that he's saying right that

would be subjective but we would say how

would this be received by the promised c

a reasonable person in the shoes of the

promisee

and here we can pretty it

fairly say that using the word hope

means he's not committing to do a

particular thing

so if though bob says something like

this

i swear that we will not dress up as

mickey and minnie this time

now he's using a word here that is not

just i hope right some sort of up in the

air word but the the reasonable person

in the shoes of the promisee barb would

think oh based on the word that he's

used that he's committing here to not do

something in particular which is

we will not dress up as mickey and

minnie this time so he's made a

commitment here

that this is something that they will

not do so that third element would be

satisfied but the question that we've

been touching on is well how exactly do

we know that

about what bob is intending it about

whether he's intending to make a

commitment or not and there are three

sort of basic tools that we use

when we are trying to decide whether or

not a reasonable person in the shoes of

the promisee

would interpret bob's manifestation

as a commitment

whether we can look at it and say yes he

has made a manifestation of an intent to

act or not act in a specified way

and

these are tools that we will use

interpretive tools that we'll come back

to

later as we progress through

this material regarding contracts

but here in this introductory lesson

it's important to at least lay some

general groundwork and say that when we

are trying to decide

whether somebody like bob the promisor

is intending to make a commitment and

how that should be understood then we

need to use some basic tools of an

interpretation to determine what his

intent is and so we'll start by saying

we're going to give his words their

ordinary meaning and so when we look at

him saying something like i swear that

we will not dress up as mickey and

minnie this time we would look at the

word swear and say well what's the

ordinary meaning of that is which means

to promise you will do something or

behave in a particular way

that's the ordinary meaning of i swear

that this is what we will do or won't do

and so we would say well the ordinary

meaning leads us to believe that he is

making a commitment here when he says i

swear we will not dress up as mickey and

minnie this time

and if there's a technical word that

we give it its technical meaning so for

instance

if bob says to barb i guarantee

we will have an extra magic hour each

day

then the word extra magic hour is a term

of art that it has a technical meaning

just giving those words their ordinary

meaning if we go to the dictionary it's

not going to help us

that that's not going to tell us what is

meant here by bob it's we need to look

and say well what does that mean in this

particular context of going to a disney

resort and staying there and going to a

park like the magic kingdom

what does that mean

well what it means is that if you stay

at the resort you get an hour either

before or after the close of park

to as a benefit of staying at the resort

you get this extra time where presumably

it's a little less crowded you get to

enjoy uh disney world in in a context at

least for a little while where there's a

few less people around

so if we give it its technical meaning

we can understand what he's saying there

that yes he's intending to make a

commitment that

we're going to

stay somewhere that's going to allow us

to have this extra hour each day

so again he would be making a promise we

know that because here we would give the

words their ordinary meaning but if

there's a technical term like magic hour

extra magic hour then we would use the

technical meaning for that phrase the

other thing to know is sometimes we need

to look at all the surrounding

circumstances in order to understand

what somebody intends so if we're trying

to interpret something objectively then

we need to account not only for the

ordinary meaning of words used in their

ordinary sense and the technical meaning

of words used in their technical sense

but also look at all the surrounding

circumstances

to understand what was meant here by the

promissor and so if we have a situation

where bob says oh don't you worry barb

we will put the magic and magic kingdom

if you know what i mean

well

it giving those words their ordinary

meaning doesn't really help us right and

it's not really a technical word but we

can look at this and say well if we know

all the surrounding circumstance that

they're going away on this trip that

they're a couple then we can look and go

oh what bob is promising there is a

romantic time with barb and so we can

say yes he is committing to have a

romantic time with his uh with his

partner barb so we can understand that

because we can look at all the

surrounding circumstances so

if we just to back up a second then we

can look back and say in order for us to

interpret and to understand

whether or not somebody in the shoes of

the promise see

should understand the promissor as

having made a commitment

we would need to say well what how do we

understand the ordinary meaning of the

words used in their ordinary sense the

tactical meaning of the words used in

their technical sense and all the

surrounding circumstances

and only then

can we answer that question

of

was there a commitment made is that last

element of the promise met well now

let's look at the method of making a

promise how may a promise be made and

here we have again a definition or a

rule that says a promise may be stated

in words either spoken or written or may

be inferred wholly or partly from

conduct again we want to chunk something

up into its elements when we have a

definition like that so we can say one

that a promise can be what it can be

either spoken or to written

or it may be inferred from

conduct so let's look at each of those

in turn with these three methods said

there could be spoken words there could

be written words or we can infer it can

be inferred from conduct so looking at

spoken words if bob says to barb i

promise to take you to disney world over

winter break that spoken word right

that's one method of making a promise he

is verbally or orally

making his promise so that would work

assuming all the elements of her promise

are mad that we've covered

then it could be written words bob could

say dearest barb i promise to take you

to disney world over winter break love

always bob so it's just written word

that works just as well for him to make

a promise to barb

then it could be inferred from conduct

and in this situation that's a little

tricky so if bob puts on his mouse ears

here

that could be him

in depending on the surrounding

circumstance that could be interpreted

perhaps as him making some sort of

promise but the normal kind of scenario

you would think of here would be

situations where

the conduct can clearly be understood as

making some sort of commitment so for

instance if you're at a bar a noisy bar

and having drinks with somebody and you

raise your hand to get the bartender's

attention and gesture something like two

bring me two right just sit up

stick your hand up with

two fingers that would be a way of

communicating

to the bartender that

i would like you to bring another round

of drinks for us

and

i am committing implicitly by my conduct

to pay for those drinks and so if the

bartender may just nod saying yes i see

you i'll send over the drinks and that

would be

a a set of promises implied by conduct

inferred by the conduct here putting on

the mouse ears may not be enough uh you

would need at least some other

surrounding circumstance perhaps if he

had packed the car up and pulled the car

up and ready to go and then he slapped

on his mouse ears then all of that

together might be enough to say yes he

is committing at that moment to take

barb on a romantic trip to disney world

over winter break

so how do we determine though whether a

promise is legally enforceable because

remember the first part of what we were

looking at was just what is a promise

looking at the anatomy of a promise but

we said when we looked at our definition

of a promise that not only is a contract

a promise or a set of promises but it's

a set of promises for which either the

law is going to provide a remedy

or it's recognizing some sort of legal

duty meaning that people make promises

all the time

but not every promise is legally

enforceable just because for instance

you promise you're going to take

somebody to dinner and invite them over

your house and you don't doesn't mean

that person can run into court and sue

you

to say well

tracy said he would take me

out to dinner and he didn't do it or he

would have me over his house to play

board games and he never did

that not every promise creates a legal

duty

or is something for which the law says

if tracy doesn't invite you over to for

dinner or doesn't invite you over for

board games that the law is going to

recognize some sort of remedy for that

that you're going to get money damages

or some sort of order that tracy must

have you over

those kinds of things

which would be a remedy so not every

promise is legally enforceable and that

makes good sense but certainly some

promises need to be legally enforceable

particularly for instance in a

commercial context or a business context

so how do we know whether something's

legally enforceable and the key issue

here of knowing whether the law is going

to recognize a duty

or recognize a remedy and often both

is that

we need to know is the promise

contractual or

gratuitous

contractual or gratuitous so what do we

mean by a contractual promise well

contractual promises are those that are

legally enforceable so now we're doing

that some sorting right where we're

saying

contractual promises are legally

enforceable but gratuitous are not so

just like we established that well of

course not every promise should allow

somebody to run an accord and sue to

enforce it because a otherwise the the

courts would be ridiculously overrun

with people suing and b that you know

that would create a very litigious

society that we don't want and people

make commitments all the time for which

we do not

allow them to run into court to enforce

it to get a remedy etc

but we need to know how do we decide

which ones the law should recognize a

remedy should say there is a legal duty

not just a moral duty to follow through

in what you commit but an actual legal

duty so it's legally enforceable and the

way we do that sorting is to say well

those promises that are contractual

are legally enforceable those that are

merely gratuitous as a general rule are

not legally enforceable i have an

asterisk there because there are often

other ways that a gratuitous promise

could be legally enforceable and we'll

look at those as we progress through all

the contracts material

so what do we mean by a contractual

promise and this is something for which

we are going to say a whole lot more but

just as an introductory matter it's a

situation where the promise is part of

an exchange that the promise is made in

return for something else usually a

return promise or return performance

and it's okay if that doesn't make total

sense right now it will moving forward

so let's look at a quick example here

with bob and barb if bob says to barb

if you earn an a in contracts i will

take you to disney world over winter

break he's now not only making a

commitment right i will take you to

disney world over winter break he's

actually looking for an exchange

something in return so barb says

sounds good

i will earn an a in contracts this

semester so barb is making a return

promise a return commitment

so we have a

an exchange of promise right a promises

it's a set of promises so when bob is

making his promise he's getting a

promise in return from barb and

that return promise we'll see is known

as consideration you don't again don't

need to fully understand that now

but it will make sense down the road but

the thing to know

is that a contractual promise is a

promise for which there is either a

return promise made as here from barb or

a return performance is given

and we'll explain exactly what that

means in more detail later but for now

it's enough to say it's part of an

exchange and so this promise for a

promise this return promise is known as

consideration in this context and so

it's part of a contract right because we

said that a contract is a set of

promises

and we've uh been unpacking this over

and over in this definition so it's

probably self-evident to call a promise

contractual that it's got to be part of

a contract and so it's got to fall

within these three things right that the

promise

it or set of promises is one for which

the law recognizes a duty to perform as

we've been saying and it gives a remedy

for breach and we'll say much more about

that but the key thing to recognize is

it's part of an exchange right an

agreement like we looked at with bob and

barb that bob is saying i will take you

to disney world over winter break if you

get an a and

barb is agreeing yes i promise i will

earn an a and contract this semester so

they've come to an agreement

so we would say that bob's promise is

contractual in nature but a gratuitous

promise we said is not legally

enforceable

because why it's not part of an exchange

it's what we call a naked or gratuitous

promise

and so when bob says

i promise to take you to disney world

over winter break

then he's made a promise and we've said

that sort of over and over again

but if that's

all that's going on and barb is silent

and recognize bob didn't say in this

case if you earn an a he's not looking

for anything in return

and barb is not

it isn't there is nothing coming in in

return then here we would say that is

just a gratuitous promise

it's not part of an exchange of promises

or a promise for performance so it's

merely gratuitous or a naked or a nude

promise that we would say as a general

rule is not legally enforceable

so a promise for a gift whether that's a

gift trip like this one in the example a

gift trip to disney world or anything

right i promise to give you a bicycle i

promise to give you a book whatever it

may be

that that promise is

if it's just for a gift it's made

without any expectation of receiving

anything in return and as a general rule

is not legally enforceable

so

to set the stage here at the beginning

i want to give you a quick look at an

analytic framework which will organize

all of the material

in contracts under this subject of

contracts so this contracts analytic

framework we can look at and say all the

way on the left is where we are now that

we are under this heading of formation

of so contract formation how do we form

a contract what are the rules governing

the formation of a contract and then

we'll look at defenses

to formation that

things that may come up either during

the formation of the contract or after

the right after the formation of a

contract

that would

either excuse

the uh the performance of the parties or

prevent the formation of the contract

we'll look at issues of interpretation

and implied terms we'll look at breach

of the contract and

related issues dealing with conditions

and repudiation and then remedies which

often is money but could be other things

so our focus on the first part though is

formation and in particular we've we're

touching on this idea of consideration

we've laid the building

sort of the foundation here the basic

building block of a contract looked at

what a promise is and

tried to distinguish between

promises that the law recognizes is

legally enforceable

which are promises that are contractual

in nature promises for which there is

consideration given meaning a return

promise or return performance

and those promises that are not as a

general matter legally enforceable

because they're gratuitous or

naked promises

so

i hope that's helpful to you as you're

working your way through contract law

thinking about these concepts obviously

there's a lot more to delve into

if this video was helpful to you i'd

appreciate if you would like and

subscribe

so i will check in with you soon with

another video thanks bye