Contracts I Outline

Contracts I Outline - Contracts Outline 1 I. Is there a...

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Contracts Outline 1 I. Is there a Contract? a. Traditional Contract (Objective theory of contract formation—MMA + C [ Ray v. Eurice Bros . “incompetent construction brothers trying to gain $”; Restatement §17]. i. Mutual Manifestation of Assent (MMA) [Restatement §22] can be through conduct [Restatement §19] 1. Before a contract can be formed, there must be a meeting of the minds of the parties as to a definite offer and acceptance [ Lonergan v. Scolnick “letters exchanged offer and acceptance”] a. Form letters are informational and less likely to show intent to be bound [Restatement §21] 2. Before meeting of minds 5 preliminary negotiations [see Longergan v. Scolnick ] 3. Offer a. Definition [ Restatement §24] i. Manifestation of an intent to be bound 1. Objective standard: would a reasonable person in a position of the offeree… ii. Certainty and definiteness of terms iii. Communication to offeree. b. Factors used to determine if an offer [ Izadi v. Machado Ford “car dealership’s ad intentionally misrepresents offer”]: i. Language of proposal ii. Conduct iii. Prior communication iv. # of persons to whom proposal is communicated v. Arrangement of advertisement vi. Completeness of suggested bargain c. Manifestation of willingness to bargain offer [Restatement §26] i. Ads aren’t designed as offers [see Izadi v. Machado Ford ] d. Method of terminating power of acceptance [Restatement §36(1)] i. Rejection/counter-offer [Restatement §38] 1. Counter-offer made when offeree proposes substitute bargain differing from proposed by original offer. [Restatement §39] 2. Qualified acceptance = counteroffer [Restatement §59] ii. Lapse of time 1. acceptance must occur within reasonable amount of time [Restatement §65] iii. Revocation
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Contracts Outline 2 1. takes effect upon communication to offeree. [Restatement §68] 2. indirectly when offeror takes definite action inconsistent with intention to enter into proposed contract and offeree acquires reliable info to that effect [Restatement §43] 3. Exception: option contract [Restatement §25; 87(1)] a. Offer binding as option contract if it is in writing and signed by offeror, has consideration for making the offer, and proposes exchange in fair terms within reasonable time or is made irrevocable by statute. [Restatement §87(1)] b. limits the promisor’s power to revoke and offer. iv. Death or incapacity of offeror or offeree 4. Acceptance a. Definition i. Manifestation of assent of terms of and in manner stated by offer [ Restatement §50(1)] ii. Takes effect upon receipt [Restatement §68] b. Mailbox rule/deposited acceptance [Restatement §63] i. Acceptance effective as soon as leaves offeree ii. Must be properly dispatched [Restatement §66] c. Medium of acceptance = reasonable if it’s the one used by offeror or customary in similar transactions at the time and place offer received [Restatement §65] d. If a seller rejects a purchase offer by making a counteroffer, which is not accepted, the prospective purchaser doesn’t
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This note was uploaded on 09/21/2009 for the course LAW All taught by Professor All during the Fall '09 term at University of the West.

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Contracts I Outline - Contracts Outline 1 I. Is there a...

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