Chapter 4 .docx - Chelsea Lewis LGLS Business Chapter 4 The...

This preview shows page 1 - 2 out of 4 pages.

Chelsea Lewis LGLS - Business September 25, 2018 Chapter 4: The Law of Contracts Contract – based on promises voluntarily made o not all promises are contracts – others are social engagements including small agreements like agreeing to go on a date, etc. Elements of a Contract – all contracts, no matter how big or small, must have these five, basic elements to them. o Offer – a proposal by one party to another manifesting an intention to enter into a valid contract; must be communicated ; must have the intent to contract (an objective standard); the terms must be definite (you have to state the subject matter, quantity and price). - The exceptions are Advertisements – at a stated price is merely invitation to negotiate because the merchant never has an unlimited supply though it’s advertised to thousands of people at a time. Fraudulent Advertising is illegal. - Offers can be revoked any time before it’s acceptance or it can terminate by its own terms. - The offer will dictate the medium, manner and time by which the offer must be accepted. - Mailbox Rule: acceptance on dispatch and revocation on receipt – as soon as its put in the mailbox (not when its received), the contract is made. If mind is changed that’s only effected when you receive it from mail. o Acceptance – the accepting of what’s being offered; a manifestation by the offeree to be bound by the terms of the offer; valid only when it has been communicated to the offeror and is unconditional. - Counteroffer – rejects the original offer and becomes and offer that the other person can accept or reject - Postal Reorganization Act – unsolicited product sent in the mail is a gift, the offer is invalid, there is no acceptance therefore you aren’t responsible for paying for it. - Silence can never be acceptance. Offeror has no power to impose duty upon offeree to act. - Auctions – with reserve: the auctioneer is merely inviting people to make offers and no contract is formed until the gavel is struck (the auctioneer can either accept or reject your offer); without reserve: the highest bidder obtains the item regardless of the bid, most auctions are this kind and if they fail to specify the type, it’s without.
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Spring '10
  • SamuelHodge

{[ 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