Contract Liability- BUL6444

Contract Liability- BUL6444 - Contract Liability Common Law...

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Contract Liability Common Law Rules of Contract Law I. The right to contract is preserved in the US Constitution; Article I, Section 10 provides “No State shall. ..pass any Law impairing the Obligation of Contracts.” The US Supreme Ct has also determined that contract rights are property rights and thus protected under the 5 th and 14 th Amendments’ due process clauses. II. A contract is defined as a legally enforceable set of promises. III. In order to have a valid contract certain elements must be present, there must be a valid: A. OFFER—the offer must be certain/specific as to terms and conditions Offers are effective when they are received. An offeror can revoke an offer anytime prior to acceptance, unless there’s an option contract . Revocations are effective when received. B. ACCEPTANCE—must mirror the offer, any changes in the acceptance will result in a counter-offer , which equals a rejection . Once an offer is rejected it cannot be accepted. The counter-offer is viewed as a new offer, and the original offeror and offeree have changed places. Rejections and counter-offers are effective when received. But, ACCEPTANCES are effective when mailed/dispatched (the “Mail-Box” rule) UNLESS otherwise specified. C. MUTUAL CONSIDERATION--“legal detriment” D. LEGALITY—contract must have legal subject matter (also cannot violate notions of public morality) (see V below) E. CAPACITY--parties must have legal capacity (see V below) IV. Certain Contracts MUST be in WRITING in order to be enforceable.
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This note was uploaded on 09/21/2011 for the course BUL 6444 taught by Professor Tessitore,j during the Spring '08 term at University of Central Florida.

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Contract Liability- BUL6444 - Contract Liability Common Law...

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