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Chapter 10
CONTRACTS IN SPORT
AND PHYSICAL
ACTIVITY
What is a Contract
 In simple terms its an agreement between two or
more parties that imposes some kind of obligation or
responsibility on each
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May exist in written or oral form and must be considered in
light of their effectiveness
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The effectivness of any contract is a simple matter of whether or
not it results in the actions required of each of the parties
What is a Contract
 For a contract to be breached there has to be an
understanding of both parties involved. There has to be
specific steps performed
 Meeting of minds
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The parties to the contract must have a mutual understanding of the
context and content of their agreement
 Contracts are created when one or more parties makes an
offer that is accepted by the other party

If the one party doesn’t accept the terms then they can make a
counter offer, which must then be accepted by the other party
 In order to have a legally binding contract then there
must be some form of consideration, something of value
must be exchanged
What is a Contract
 The enforceability of the contract will also depend on the
specificity of the terms used

Poor language in a contract can lead to complications should the
contract be litigated
 All parties to a contract must have sufficient legal
capacity for the contract to be binding and enforceable

Under law minors and persons who suffer from mental incapacity
cannot be held to binding contractual agreements

These are considered voidable
 Minors may enforce agreements they make, but they can
also revoke them at will and remain free from contractual
enforcement
 The courts will also rarely enforce a contract that has at is
core an illegal subject
What is a Contract
 Certain types of contracts are governed by a national series of
laws based on a statutes known as the uniform commercial
code
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Has been modified state to state but some form holds true in every state
 the types of contracts covered are
 Commercial transactions
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Negotiable instruments

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This would be the sale of good such as uniforms, basketballs, and equipment
This would include checks, bills, of lading, letters of credit, and other
documents used to facilitate the payment of monies for the sale of goods
Secured transactions

These are contracts in hich one party pledges or gives an intrests in goods as
security for the transaction
What If You Don’t Call It A Contract
 It does not have to called a contract for the courts to view
it as one. The following have been viewed as equivalent
by the courts
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Personnel manuals
By-laws of association
Company employee bulletins
Procedures manuals
College catalogs
Published rules and regulations
Operations manuals
Disciplinary rules
Waivers, permissions, releases and other exculpatory documents
Contracts and the Courts
 Not all contracts have to be in written form, there are still
valid binding oral agreements being met
 Someone seeking to enforce an oral contract will have a
much harder time doing so.

The problem is trying to prove if there was a meeting of minds
 There are some form of contracts that are not valid
unless they are written down

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This concept is referred to as the statute of frauds
This would include contracts that convey an interest in real property;
contracts for the sale of goods valued more than $500; contracts to
answer for the debt of another; and contracts which will not be
performed within one year of their creation
Parole Evidence Rule
 If a written contract is complete as written, then then
parole evidence rule dictates that the court will not
consider items outside of the contracts such as prior
oral understandings, interpretations, or other
written material
Breach of Contract
 A breach of contract occurs when one or more of the
parties involved fails to fulfill the promises made in
the contract

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An immaterial or partial breach of contract is relatively minor
or insignificant and generally will not cause the remainder of
the contract to be rules invalid
A material or total breach usually excuses the injured party
from fulfilling their promises and affords them the opportunity
to sue for breach of contract
Judicial Remedies for Breach of Contract
 A party who sues for breach of contract must request the
particular form of relief desired
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This is known as election of remedies
In most cases the party will seek to recover damages, and more often
than not money will make up the compensation
Sometimes the court requires the breaching party to honor the terms
of the contract, either by completing the promised transaction or by
fulfilling the promised act.
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This is known as specific performance
The court may also issue an injunction that directs a party to perform
a particular act or prohibits them from doing so
The courts may also order a rescission that cancels the contract and
restores all parties to their original positions, or order reformation
which rewrites the contract to conform to what the court determines
to have been the original intent of the contract