Contracts I - Contracts To make a contract there must be...

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Contracts To make a contract there must be mutual assent , or an agreement between the two. Also there must be consideration from all parties. There are two types of contracts. One governed by common law, another by the U.C.C (Uniformed Commercial Code). UCC is in charge of contracts dealing with goods. To have a contract: - Common Law (Case law) – real estate, and services o Even though there is a manifestation of intention, it is not a contract unless the terms of the contract are reasonable certain o There must be a basis for determining the existence of a breach and for giving an appropriate remedy - UCC (Article 2) – Transaction in goods (Created in 1952) o If a portion of the contract is not specified, then it would assume “reasonable” o No price written, then reasonable market price o Transaction is defaulted at Seller’s place o To be paid when buyer receives the item Predominant purpose test- What the parties really want. Contract formation - Mutual Assent o Offer – Communication to the offeree of the offeror’s present willingness to enter into contract, with reasonably certain terms Harvey v. Facey Lefkowitz v. Great Minneapolis Surplus Store Must leave nothing open to negotiation. Fairmount Glass Works v. Crunden-Martin Language used is not dispositive (said quote) Store Properties v. Neal If documents is only intended to be part of further negotiations, it will not be held to be an offer However, where manifestation of assent is sufficient to constitute a K, a mere indication of intent… (in slides) Kuzmeskus v. Pickup Motor Offeror is Kuzmeskus because he had present willingness (shown by language in offer). Special offer rules Ads, Quotes and Circulars o General are not offers. Unless the wordings are specific to the point where there is no room for negotiation Requests for Bids o Generally are not offers, but invitations to offers. Note: When a subcontractor gives a bid to a contractor, that is a irrevocable contract.
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Letters of Intent (depends on wording) o 2 types To note the process of a complex arrangement (not to bind, but to see if there if they agree enough on terms) A formality to bind the two into a contract. o Acceptance Offeree’s communication of commitment to the terms of the offer made in a proper manner 4 requirements Communication of acceptance Of the terms o Common Law: Mirror image rule o UCC: Abandons mirror image rule some variations OK 2-207 By the offeree In a proper manner o May invite or require acceptance by answer by words or performing act If offer is required in a manner, then that requirement must be done for offer to be accepted If offer is invited or requested by manner, then it can be accepted in a “reasonable manner”
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Contracts I - Contracts To make a contract there must be...

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