Chapter 11 - Agreement

Chapter 11 - Agreement - Law & Society I M W 9:30AM,...

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Law & Society I Key : M W 9:30AM, Snell 213 Normal, black, size 12 font: Every header found in text John Exley, ID: 0160294 Normal, dark blue, size 12 font: Excerpts from text 10.03.08 Bold, black, size 12 font: Vocabulary from text Chapter 11: Agreement Pages 232-246 Agreement: A meeting of two or more minds in regard to the terms of a contract; usually broken down into two events – an offer by one party to form a contract, and an acceptance of the offer by the person to whom the offer is made. Mutual Assent: The element of agreement in the formation of a contract. The manifestation of contract parties’ mutual assent to the same bargain is required to establish a contract. Section 1 – Requirements of the Offer Offer: A promise or commitment to perform or refrain from performing some specified act in the future. Under the common law, three elements are necessary for an offer to be effective: 1) The offeror must have a serious intention to become bound by the offer. 2) The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract. 3) The offer must be communicated to the offeree. Intention Serious intent is NOT determined by the subjective intentions, beliefs, and assumptions of the offeror. …Under the objective theory of contracts , a party’s words and conduct are held to mean whatever a reasonable person in the offeree’s position would think they meant. o Expressions of Opinion An expression of opinion is NOT an offer. o Statements of Future Intent A statement of an intention to do something in the future is NOT an offer. o Preliminary Negotiations A request or invitation to negotiate is NOT an offer. It only expresses a willingness to discuss the possibility of entering into a contract. o Agreements to Agree Traditionally, agreements to agree – that is, agreements to agree to the material terms of a contract at some future date – were NOT considered to be binding contracts. The modern view, however, is that agreements to agree may be enforceable agreements (contracts) if it is clear that the parties intended to be bound by the agreements. In other words, under the modern view the emphasis is on the parties’ intent rather than on form. o Advertisements In general, advertisements – including representations made in mail-order catalogues, price lists, and circulars – are treated NOT as offers to contract but as invitations to negotiate. o Auctions In an auction, a seller “offers” goods for sale through an auctioneer, but this is NOT an offer to form a contract. Rather, it is an invitation asking bidders to submit offers. 1 | P a g e
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All auctions are assumed to be auctions with reserve (the seller is allowed to withdraw the goods at any time before the auctioneer closes the sale by announcement or by the fall of the hammer.) unless the terms of the auction are explicitly stated to be without reserve (the goods cannot be withdrawn by the seller and must be sold to the highest bidder). Definiteness of Terms
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Chapter 11 - Agreement - Law & Society I M W 9:30AM,...

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