Ch 09 notes - Nature of Traditional & E-Contracts

Ch 09 notes - Nature of Traditional & E-Contracts -...

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Business Law Monday, October 12, 2009 Definition of a Contract 153 1. Contract : An agreement that is enforceable by a court of law or equity. a. Made between private parties, not the government b. Legally enforceable : If a party fails to perform a contract, the other party can use the court system to enforce the contract and recover damages or other remedy 2. Parties to a Contract a. Offeror : Party who makes an offer to enter into a contract b. Offeree : Party to whom the offer is made i. Has the power to create a contract by accepting the offer. ii. No contract is created if the offer is not accepted. 3. Elements of a Contract 154 a. Agreement : Mutual assent by both parties (offer + acceptance) b. Consideration : The promise must be supported by bargain-for consideration that is legally sufficient i. Gift promises and moral obligations are not considered supported by valid consideration c. Contractual capacity : Parties must have contractual capacity (e.g. the insane do not have contractual capacity) d. Lawful object : The object of the contract must be lawful 4. Defenses to the Enforcement of a Contract a. Genuineness of assent : Consent cannot be obtained by duress, undue influence, or fraud b. : Certain contracts need to be in writing or in a certain form 5. Today, sellers have evolved to using form contracts to offer goods to buyers on a take-it-or- leave-it basis. This occurred because: a. Buyers did not have to deal face-to-face with sellers. b. There was not always an opportunity to inspect the goods prior to sale. Sources of Contract Law 155 1. Common Law of Contracts : Developed from early court decisions that became precedent 2. The Uniform Commercial Code (UCC) : Goal is to create a uniform system of commercial law among the states. It is divided into 9 articles, which include the following: a. Article 2 (Sales): Sales contracts b. Article 2A (Leases): Lease contracts 3. The Restatement of the Law of Contracts 156 : Compilation of contract law principles drafted by legal scholars. Objective Theory of Contracts The intent to enter into an express or implied-in-fact contract is judged by the reasonable person standard . 1.
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Ch 09 notes - Nature of Traditional & E-Contracts -...

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