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Unformatted text preview: Elements of Law - Part One Part III Contract Law
Unit 6 General Principles of Contract Law © 2007 Captus Press Inc. Module 1 Introduction to the Law of Contract © 2007 Captus Press Inc. © 2007 Captus Press Inc. 1 Elements of Law - Part One What is a contract?
A contract is an agreement made between two or more persons that the law recognizes and will enforce. Characteristics of a contract
There must be an intention to create a legal relationship There must be an offer and acceptance of that offer There must be consideration The contract must be for a lawful purpose © 2007 Captus Press Inc. 2 Elements of Law - Part One Sources of Contract Law
Case law Regulatory statutes Rationalizing statutes Statutes designed to prevent fraud and protect those lacking capacity Module 2 Intent to Create Legal Relations © 2007 Captus Press Inc. © 2007 Captus Press Inc. 3 Elements of Law - Part One Factors indicating an intention to be bound
Arm’s length transaction Presence of consideration Parties are strangers Contract deals with commercial subject matter Module 3 Offer and Acceptance © 2007 Captus Press Inc. © 2007 Captus Press Inc. 4 Elements of Law - Part One What is an offer?
Display of goods in a retail store- an invitation to do business Advertisements of goods for sale-an invitation to do business Advertisements offering a deal to the first few who show up-an offer Offers of reward-an offer Communication of offers
An offer must be communicated to the offeree before it can be accepted No one can accept an offer of which he or she is unaware Only the person to whom an offer is made may accept an offer © 2007 Captus Press Inc. 5 Elements of Law - Part One Acceptance of offers
Acceptance must be communicated in the manner requested or implied by the offer Performance of the offer in some cases may amount to acceptance If acceptance is verbal, it is made when the words are spoken If acceptance is by mail, then it is made at the moment of mailing In other cases, acceptance is made when it is actually received. Counteroffers and inquiries
Offer: you can have it for $50. Counteroffer: “$50 is too much but I will take it off your hands for $40. Inquiry: Can you pay the $40 right now in cash? Rejection: no. Offer: you can have it for $45 and pay next week. Acceptance: ok I’ll take it at that price and pay you next week. © 2007 Captus Press Inc. 6 Elements of Law - Part One Lapse and revocation of an offer
An offer lapses or is deemed to be revoked if: Either of the parties dies, declares bankruptcy or is declared insane before the offer is accepted. The offeree rejects the offer or makes a counteroffer The offeree fails to accept the offer within the time period specified in the terms of the offer. If no time period is specified in the terms of the offer, the offeree fails to accept the offer with a reasonable time period. © 2007 Captus Press Inc. 7 ...
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