Review - Requirements of a Contract Legally enforceable...

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Requirements of a Contract Legally enforceable agreement. Makes business dealings more predictable. If it is a gift, no contract. It is a duty to read all contracts. 1) Offer : Clear intent And Definite Terms . Objective manifestation of intention: validity of an offer is judged by what a party wants or says in an offer a. Offers have duration determined by i. In the contract ii. Lasts for a reasonable time, open for a reasonable time b. Counteroffers- once a counter offer is made it cancels the original offer c. Joking- are still valid offer is other person thinks it is a true offer Two Requirements of an offer: i. Clear intent to make an offer. Validity of offer judged on what offeror writes or says. Go with what’s on the paper, said, or done – not what the individual intended. This is because a reasonable person cannot read minds ii. Definite in terms 2) Acceptance: Would a reasonable person think you have accepted the offer? a. Need mutual assent – when both parties come to an understanding of the terms of the contract – also known as “meeting of the minds” AND b. Mirror image rule – acceptant has to mirror the offer – cannot change any part of the offer – any changes to the offer will be a rejection and known as a counter offer. 3) Consideration : A bargained for exchange where both parties to contract give a benefit to the other party and suffer a detriment. Process of giving something up that you are legally bound to do. Promising not to drink is a valid consideration b/c it’s your legal right but not smoking pot is not a valid consideration b/c its not your legal right. Under no consideration it’s a gift and that is not legally enforceable b/c it’s not a contract. something for something bargain for exchange in which both parties to the K get a benefit AND suffer a detriment : a. Ex: Money, property, goods, giving up legal rights (agreed not to sue someone) b. This is what makes a contract different from a gift; give something is not a contract (Dougherty v. Salt) aunt said because you were a good boy, I will give you $3000, not a k because this is a gift the boy did not give something to get something 1
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4 Ways to Termination an Offer 1. Lapse – an expressed term. For example: good for two weeks or a reasonable amt of time (Time limit to consider the offer, when it is expired, then it is terminated) If no time is specified, then we use a “reasonable amount of time”. 2. Revocation – offeror takes back the offer – must be done before acceptance by offeree. 3. Rejection – offeree says no or gives a counter offer 4. Acceptance – offer terminated and now it’s a contract Contract Defenses 1) Capacity to contract – parties who contract must have legal capacity to contract. If court finds one party is insane then you can void. Have to be mentally sane to enter into a contract: You are void if the judge has already declared you mentally insane
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Review - Requirements of a Contract Legally enforceable...

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