Video: Types of Contracts

In this lesson, navigate the maze of different contract types with Nick Palazzolo, CPA, as he breaks them down using everyday scenarios to make complex legal concepts easy to grasp. From express contracts to unilateral and bilateral agreements, the distinctions become clear through Nick's practical examples, like a wedding photographer being hired, a haircut at a salon, or a lost dog's reward. Dive deeper into the realm of quasi-contracts and understand the role of equity in the justice system, especially when mistakes happen, such as with a mix-up in a shipment of electronics or a landscaper's misunderstanding. By the end of this lesson, the intricacies of common law contracts vs. UCC and preventing unjust enrichment no longer seem daunting, giving a solid foundation to tackle related questions on the exam.

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Video Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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All right, we got some examples of contract types. Well, we saw these and now we're gonna go through examples. We've got an express contract. This is a situation where Jane is gonna hire a photographer, Mike, to take pictures at her wedding. They both sign a written agreement stating the date, time, location, services provided and the payment terms. This is an express contract because the terms and conditions are explicitly stated in the written agreement. Pretty straightforward, I like it. Next up, an implied in fact contract. Sarah goes to a hair salon and sits in the stylist's chair asking for a haircut. The stylist proceeds to cut Sarah's hair without discussing specific terms or conditions. Now, obviously they're probably gonna ask, hey, how short do you want your hair? But that's not what we're talking about here. We're talking about payment saying, hey, you're gonna have to pay. It's kind of inferred that Sarah's gonna have to pay at the end of this. Now, after the haircut, Sarah pays the stylist. This is an implied in fact contract because the terms and conditions are inferred from the party's conduct, even though they did not expressly state them. If you walk in to a hair salon, sit down in a chair, it's pretty clear that you're there for a haircut and you know you're gonna have to pay, unless you just fill up the turnip truck or you're an alien first day on the planet. That would just be inherently understood. Next up, implied in law, known as a quasi contract. Peter mistakenly receives a shipment of expensive electronics intended for his neighbor. All right, interesting situation. Hopefully Peter just gives them to his neighbor, but we'll see. Peter does not return the electronics or pay for them.

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