Exam 3 Physical Buisness LAw.docx - Chapter 9 Nature of...

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Chapter 9: Nature of Traditional and E-Contracts Definition of a Contract - A contract is an agreement that is enforceable by a court of law or equity - A legally binding an agreement (enforceable agreement) - All agreements are contract – FALSE Parties to a contract - Every contract involves at least two parties - The offeror – is the party that makes an offer to enter into a contract - The offeree – is the party to whom the offer is made - A contract is created when the offeree accepts the offer - Offeror – initiates a contract (make an offer) - The offer is made to the Offeree Elements of a contract - Acceptance To have an enforceable contract there must be an agreement between the parties This requires the offer buy the offeror to be accepted by the offeree A reasonable person believes is a reasonable person Needs to be between two reasonable persons - Consideration A promise must be supported by a bargained for consideration that is legally sufficient Is the thing of value that both parties to the contract must give to the other Both sides have to give consideration There is no requirements that the consideration needs to be of the same value - Contractual capacity The parties to a contract must have contractual capacity for the contract to be enforceable against them Everyone who enters a contract needs to have contractual capacity Needs to have mental and understanding to make a contract (needs to know what they are doing) All minors can enter into a contact but they have to have conceptual capacity (they must understand what they are doing) - Lawful objective The objective of the contract must be lawful Contracts with illegal objects are void and cannot be enforced You cannot have a contract unless the contract is lawful If the subject matter is illegal there is no contract Void contract – no legal effect on illicit contract operations (meth lab contract) Uniform commercial code
- Uniform commercial code (UCC) – a comprehensive statutory scheme that includes laws that cover aspect of comical transactions - Referred as the UCC - Sales contracts of personal property - The two mayor provisions of the UCC are: Article 2 ( Sales ) – prescribe a set of uniform rules for the creation and enforcement of contracts for the sale of goods ‘ UCC article 2 – directs sale of personal property Article 2A ( Lease ) – prescribe a set of uniform rules for the creation and enforcements of contracts for the lease of a good UCC article 2A – rental of personal property Bilateral and Unilateral contracts - Bilateral contract A contract is bilateral if the offeror’s promise is answered with the offeree’s promise of acceptance The bilateral contract is “a promise for a promise” No act of performance is required to make a bilateral contract o You give a promise and you are asking the other side to make another promess o

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