BL-Chapter 10 - CHAPTER 10 AGREEMENT Introduction Contracts...

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Unformatted text preview: CHAPTER 10 AGREEMENT Introduction Contracts are voluntary agreements between the parties. One party makes an offer that is accepted by the other party. Without mutual assent , there is no contract. Assent may be expressly evidenced by the oral or written words of the parties or implied from the conduct of the parties To be enforceable a contract must be supported by consideration (something of legal value) Most contracts that are not supported by consideration are not enforceable The parties may voluntarily perform a contract that is lacking in consideration Agreement Agreement Manifestation by two or more persons of the substance of a contract It requires an offer and an acceptance Prior to entering a contract, parties may engage in prelimary negotiations about price, time of performance, etc. At some point one party (offeror) makes an offer to the party who the offer is made to (offeree) The offer sets forth the terms under which the offeree is willing to enter into the contract The offeree has the power to create an agreement by accepting the offer 1 Offer Excerpt from the Restatement (Second) of Contracts): The manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. Requirements for Effective Offer The offeror must objectively intend to be bound by the offer. The terms of the offer must be definite or reasonably certain. The offer must be communicated to the offeree. Objective Intent-Intent to enter into a contract is determined using the objective theory of contracts whether a reasonable person viewing the circumstances would conclude that the parties intended to be legally bound No valid contract results from: is a valid offer because it indicates the offerors present intent to contract Ex. A question such as Are you interested in selling your building for $2 million? is not an offer. It is an invitation to make an offer or an invitation to negotiate Preliminary negotiations Would you sell your building for $100,000? Offers that are made in jest, anger, or undue excitement 2- I will buy your car for $200 is a valid offer because it indicate the offerors present intent to contract Ex. The owner of company A exclaims in frustration For $2 Id sell my whole cpu division An offer such as that cant result in a valid contract Express Terms The terms of an offer must be clear enough to the offeree to be able to decide whether to accept or reject the terms of the offer. If the terms are indefinite, the courts cant enforce the contract or determine an appropriate remedy for its breach Terms must be definite ....
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BL-Chapter 10 - CHAPTER 10 AGREEMENT Introduction Contracts...

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