What 1. elements are necessary for an effective offer? Well, it starts with an offer and an acceptance. After that an effective offer consists of a serious intention, reasonably definite terms, and, communication to offeree. 2. What are some examples of nonoffers? Some examples of non-offers are the following opinions, good intentions, preliminary negotiations, auctions are not offers and agreements to agree. 3. What is an accord and satisfaction? Accord and satisfaction is the amount of debt must be in dispute; if liquidated debt (uncertain) accord and satisfaction cannot occur. 4. What is consideration? Consideration is legal value given in return for a promise. It is something of legally sufficient value, given in a bargained-for-exchange between the parties. 5. Does the mental incompetence of one person automatically make the contract void? If a person has been adjudged mentally incompetent by a court of law and a guardian has been appointed the contract is void. 6. Does an intoxicated person have the capacity to enter into an enforceable contract? A contract can be either voidable or valid in such cases. Much of the decision depends on intoxicated how the person is. Courts look at objective indications to determine if contract is voidable. If the contract is voidable, Person has the option to disaffirm, or Person may ratify the contract expressly or impliedly. 7. What is the difference between a mistake of value or quality and a mistake of fact? The difference between a mistake of value or quality and a mistake of fact is a Mistake of Value or Quality Contract is enforceable; however, a Mistake of Fact if a Unilateral Mistake of Material Fact the mistaken party does not have the right to cancel contract. They are allowed only if the non-mistaken party knew or should have known about the mistake, or there is a clerical error. 8. What happens if a person misrepresents a fact unintentionally? If a person misrepresents a fact unintentionally they might be under Undue Influence. Undue Influence Arises from a special relationship of trust. A stronger party overcomes a weaker partys free will by exerting psychological influence. Duress is Threat of physical force or extortion. Duress can serve as basis for rescission of contract; however, Economic need, by itself, is not duress.