chapter 4 outline

chapter 4 outline - Chapter 4 1) Contract Law and The...

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Chapter 4 1) Contract Law and The Hospitality Industry a. Introduction i. Contract Definition 1. Is an agreement between two or more parties that is enforceable in court. b. Elements of a Contract i. Contractual Capacity 1. Definition a. The ability for both parties to understand the terms of the contract and to appreciate that failure to perform its terms can lead to legal liability, including a lawsuit. 2. Parties that do not have contractual Capacity a. Minors, the mentally incompetent and the very intoxicated. 3. Voidable Contract a. A contract that can be cancelled by one party, the person who lacks contractual capacity. b. Only necessities lack the ability to be voided by the contractually incapacitated. ii. Mutuality 1. Definition a. All parties are interested in the terms of the contract and intend to enter an agreement in which they will be legally bound. 2. Establishment of mutuality a. One party makes an offer and the other party accepts an offer 3. Offer a. Definition i. A proposal to do, or give something of value in exchange for something else. 4. Offeror a. Definition i. The person who makes the offer 5. Offeree a. Definition i. The person to whom the offer is made. 6. The offer Must Be Definite a. Definition i. The terms of the offer must be definite, concise and clear, they cannot be vague lack clarity.
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b. Invitations to Negotiate i. Discussions that may or may not lead to an offer which stems from general or vague statements. 7. Responses to Offers a. Acceptance i. Definition 1. An expression of agreement made by the offeree to the terms and stipulations of the offer. b. Counteroffer i. Definition 1. A response to an offer that may have changes in the provisions of the offer. iii. Legality 1. Definition a. For a contract to be enforceable it must have legal objectives; if the parties obligate themselves to do illegality the contract is void. 2. Void Contract a. A contract that is unenforceable by court. 3.
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This note was uploaded on 03/19/2008 for the course HRIM 405 taught by Professor Oldguy during the Spring '08 term at Penn State.

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chapter 4 outline - Chapter 4 1) Contract Law and The...

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