Literature review

This paper provides a comprehensive review of the literature in a specific area of interest. It
enables you to investigate previous research and find out what’s been done before. Importantly,
the literature review sets the context for the law case and provides the framework for interpreting
the results .In this assignment, we have done a research to provide an understanding of the basic
elements of a valid contract and the way in which the contract was created. The topics to be
covered focus on contracts also require an understanding of the types of circumstances in which
even legally valid contracts will not be enforced.

 Express Contract: A contract in which the terms of the agreement are explicitly stated
orally or in writing. n
 Implied Contract: A contract formed in whole or in part by the conduct (as opposed to
the words) of the parties. In order to establish an implied contract,

(1) the plaintiff must have furnished some service or property to the defendant,

(2) the plaintiff reasonably expected to be paid and the defendant knew or should
have known that a reasonable person in the plaintiff’s position would have expected to be
paid for the service or property rendered, and

(3) the defendant must have had the opportunity to reject the service or property
and failed to do so.

Finally, a contract can be a mixture of an express contract and an implied contract. In

other words, a contract may contain some express terms, while others are implied.

In the fact, we have many law cases which related to an implied contract to make oral changes.
For example: During the construction of a home, the homeowner often asks the builder to make
changes in the original specifications. When do these changes form part of an implied contract
that makes the homeowner liable to the builder for any extra expenses? That was the issue in the
following case which we have choosen.

In the background of the case:

 Uhrhahn Construction was hired by Lamar Hopkins for several projects in the building of
their home.
 Each of the proposals accepted by Hopkins said that any changes in the signed contracts
would be done only “upon written orders”
 Hopkins made several unwritten requests for changes, which were fulfilled
 Hopkins requested that Uhrhahn use Durisol blocks instead of cinderblocks in some
construction
 Hopkins said that the total cost would be the same, and Uhrhahn orally agreed to the
the change
  But demanded extra payment when it discovered that Durisol blocks were more
complicated to use than cinder blocks.
 Hopkins refused to pay, claiming that the cost should be the same, so Uhrhahn sued.
ISSUE: Did the homeowners and the builder have an implied contract to make oral changes
regarding the substitution of Durisol blocks for the cinder blocks specified in the contract? Does
the type of contract between parties allow them to change it orally and propose or agree under
extra work in the same way?

DECISION: The Utah appeals court affirmed the decision of the trial court, finding that there
was a valid contract between the parties. According to the decision of the court, the contract
between parties allowed to make oral changes in case of additional proposals. The changes
created an implied contract by which the builder agreed to provide extra work in exchange for
additional compensation from the homeowners.

EXPLAIN: In this case, the elements of a contract were present, offer and acceptance,
competent parties, and consideration. The terms were clearly specified in the proposals accepted
by Hopkins. Uhrhahn also promised to perform work in exchange for payment. Although the
contract stated that any changes would be in writing, both parties orally agreed on some changes
in the work performed. In the fact, the builder did the work, and the buyer accepted the work.
Such oral modification of the original contract creates an enforceable contract, and payment is
due for the extra work. This is also a form of an implied contract.