blawsnotesexam2

blawsnotesexam2 - Ch 10 Mutual Assent I Introduction Mutual...

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Ch. 10 Mutual Assent I. Introduction Mutual assent is so basic that frequently a contract is referred to as the agreement between the parties Enforcing the contract means enforcing the agreement; indeed, the agreement between the parties is the very core of the contract The manner in which parties show mutual assent is by offer and acceptance One party makes a proposal (offer) by words or conduct to the other party, who agrees by words or conduct to the proposal (acceptance) A contractual agreement always involves either a promise exchanged for an act or forbearance to act (unilateral contract ) or a promise exchanged for a promise (bilateral contract ), as manifested by what the parties communicate to one another An implied contract may be formed by conduct Thus, though there may be no definite offer and acceptance, or definite acceptance of an offer, a contract exists if both parties have acted in a manner that manifests (indicates) a recognition by each of them of the existence of a contract To form the contract, the parties must manifest their agreement objectively The important thing is that the parties indicate to one another by spoken or written words or by conduct The law applies an objective standard and is concerned only with the assent, agreement, or intention of a party as it reasonably appears from his words or actions The law of contracts isn’t concerned with what a party may have actually thought or the meaning that he intended to convey, even if his subjective understanding or intention differed from the meaning he objectively indicated by word or conduct II. Offer An offer is a definite proposal or undertaking made by one person to another, which manifests a willingness to enter into a bargain The person making the proposal is the offeror The person to whom it’s made is the offeree Upon receipt, the offer confers on the offeree the power of acceptance, by which the offeree expresses her willingness to comply with the terms of the offer The communication of an offer to an offeree doesn’t of itself confer any rights or impose any duties on either of the parties Until the offeree exercises this power to create a contract by accepting the offer, the outstanding offer creates neither rights nor liabilities An offer may take several forms: 1) it may propose a promise for a promise, 2) an offer may be a promise for an act, 3) an offer may be in the form of an act for a promise (inverted unilateral contract) III. Essentials of an Offer To be effective an offer must 1) be communicated to the offeree, 2) manifest an intent to enter into a contract, and 3) be sufficiently definite and certain
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If these essentials are present, an offer that hasn’t terminated gives the offeree the power to form a contract by accepting the offer A. Communication To have the mutual assent required to form a contract, the offeree must have knowledge of the offer; he cannot agree to something of which he has no knowledge
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