Week 7 Chapter 7 and 8 .docx - March 3 Chapter 7 and 8...

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March 3 Chapter 7 and 8- Introduction to Contracts and Considerations Elements for Contract 1. Intention to Create Legal Relations 2. Meetings of the minds 3. Consideration Contracts are a legally enforceable agreement Tort law is involuntary, with a contract you have to decide if you want to be apart of this contract it is voluntary Essential elements of a contract 1. Introduction to creating legal relations 2. Meeting of the moods (offer and acceptance) 3. Exchange of value (consideration Generally does not have to be in writing. You go into a grocery store, and you buy food and you get given a receipt. This is a contract. Any agreement related to land MUST be in writing. So people do not sell the same land to multiple people 1. Intention to Create Legal Relations Parties must intend to create legal relations Objectives test: what would a reasonable person believe at time when contract was formed? General Rule” there is a presumption Of intent in commercial design Against intent in the social and family contract The exception to rule. Perception is reputable In business, people have the exception that people will follow the agreement. The family agreement, the expectation is that people will not actually hold them accountable. Example agreement with parents to do chores for allowance, parents will not usually go to court over not doing chores. Typically among friends and family, they do not enter legal relations but this is reputable. With a Letter of intent arrangement. But with avoiding court (legal relations) in a social situation get a lawyer and make a writing agreement Example: Fobasco v.cogan (1990) pg 167. Issue: Fobasco did not sell Cogan tickets to him Rule: Reasonable person test: Would a reasonable person believes that they have entered contractual relations?? A social relationship or a contractual relationship This is just a social relationship they have an arrangement between two friends. It is an oral arrangement between two friends NOT a contract If they wanted to make this official they would do a written agreement. Application Arguments for and against
He could have bought his own tickets instead of giving his friend the obligation for his friends to get him tickets. David is trying to take advantage of never buying tickets for his friend. Now he wants to get the benefit to get his friend to compile. It was significant was social not business Fabasco limited would’ve known the to create a written agreement Conclusion Therefore David can not sue him 2. Meetings of the minds A. Offer Expression of willingness to enter a contract on stated terms Communicated by a gesture, written, words Offer must be communicated Written document Oral statement Conduct- gestures You go to another country and you do not speak the language but you go to a store and buy water. The point at the water bottle. Present your money Risk of contract creation through acceptance B. Managing Risk: Invitation

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