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Unformatted text preview: Chapter 9 Contract Formation 02:06 Elements of a Contract Mutual agreement (1. offer and 2. acceptance) 3. Consideration Capacity (comes up as a defense) Legality (comes up as a defense) Offer: A. communication (offeror to offeree): o Reward offers if there is no communication regarding the amount of the offer then the contract is void. B. A reasonable person would believe the offeror intends to be bound. o Offeree and offeror should offer up a serious offer not a joke o Ex. Joking Case 9.2 Lucy v Zehmer o Ex. Future intent not sufficient o Ex. Invitation to negotiate/ads (Pepsi case) C. Terms of offer must be reasonably certain and definite. o Can court enforce? o Case 9.3 (Baer v Chase) o Usually looking for. Identity of the offeree Subject matter or nature of work Price Time of payment or performance Quantity D. Has the offer terminated prior to acceptance? o Offers terminate the following ways: (i) Offeror can revoke before acceptance occurs (exceptions exist) (ii) Rejection by the offeree (iii) Counteroffers (viewed as rejections and a new offer) Acceptance Words or conduct that indicates agreement to the terms of the offer. A. Check who: Acceptance by the party to whom the offer was directed B. Check how: unequivocal acceptance (grumbling acceptance is an acceptance, but if add conditions etc, then is counteroffer) o Terms need to be met C. Usually acceptance needs to be communicated....
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This note was uploaded on 04/05/2008 for the course BUSN 318 taught by Professor Thomasl.wilson during the Spring '14 term at Biola University.
- Spring '14
- Business Law