ch13 - When deciding whether there is a contract, we look...

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When deciding whether there is a contract, we look to the objective manifestations of intent by the parties—the outward behavior of the parties as interpreted by a reasonable 3 rd person viewing the behaviors. Think of this as the the offeror’s outward manifestations of intent—their words and actions—not their internal thoughts Plain meaning rule —if a writing, or a term in question, is plain and unambiguous on its f ace, its meaning must be determined from the “4 corners of the instrument,” without resort to extrinsic evidence. The words are given their ordinary meaning. In the typical contract transaction, each party makes at least one promise. For example, if Alex says to Bob, “If you promise to mow my lawn, I will pay you ten dollars,” and Bob agrees to mow Alex’s lawn, Alex and Bob have made mutual promises, each undertaking to do something in exchange for the promise of the other. When a contract comes into existence by the exchange of promises, each party is under a duty to the other. This kind of contract is
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This note was uploaded on 05/31/2010 for the course ACCT 1237 taught by Professor Hillman during the Spring '10 term at Drake University .

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ch13 - When deciding whether there is a contract, we look...

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