Exam 2 studyguide.docx - LEGAL ENVIRONMENT OF BUSINESS EXAM...

This preview shows page 1 - 2 out of 16 pages.

LEGAL ENVIRONMENT OF BUSINESS EXAM 2 SUDYGUIDE Chapter 9 – Formation of Traditional and E-Contracts Overview of Contract Law Contract – “a promise or a set of promised for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty” OR an agreement that can be enforced in court Objective Theory of Contracts – a theory under which the intent to form a contract will be judged by outward, objective facts as interpreted by a reasonable person, rather than by the party’s own secret, subjective intentions. Objective facts may include: 1. What the party said when entering into the contract. 2. How the party acted or appeared 3 The circumstances surrounding the transaction. Requirements of a Valid Contract: •Agreement – an agreement to form a contract includes an offer and an acceptance. •Consideration – Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for consideration. •Contractual capacity – each party must be recognizable as possessing characteristics that qualify them as competent parties. •Legality – the contract’s purpose must be to accomplish some goal that is legal and not against public policy Defenses to the enforceability of a contract: Voluntary consent – the consent of both parties must be voluntary Form – the contract must be in whatever form the law requires. Ex. Written Types of Contracts Offeror – party making offer Offeree – the party to whom the offer is made Bilateral Contracts if the offeree can accept simply by promising to perform “promise for a promise” no performance (payment or delivery of goods) is required to be formed existence the moment the promises are exchanged Unilateral Contracts offer is phrased so that offeree can accept offer only by completing contract’s performance “promise for an act” existence at moment when contract is performed Revocation of offers for Unilateral Contracts problem when promisor attempts to revoke the offer after promisee has begun performance but before the act has been completed MODERN DAY: once performance has been substantially undertaken, the offeree cannot revoke
Image of page 1

Subscribe to view the full document.

LEGAL ENVIRONMENT OF BUSINESS EXAM 2 SUDYGUIDE Formal Contract: contracts that require a special form or method of creation (formation) to be enforceable ^ negotiable instruments – checks, drafts, promissory notes, bills of exchange, certificates of deposits & letters of credit Informal Contract: (simple contracts) no special form is required usually based on substance rather than form Express Contracts: terms of agreement are fully and explicitly stated in words, oral, or written ex. Signed lease for house or phone call Implied Contracts: the conduct of the parties, rather than their words, creates & defines the terms of contract Requirements for implied contract: •plaintiff furnished some service or property •plaintiff expected to be paid for that service or property, and defendant was aware
Image of page 2
You've reached the end of this preview.
  • Spring '16
  • Courtney Bullard
  • Business

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern