Week 5 - AEM320 Week 5 I Elements of a Valid Contract A...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM320 – Week 5 I. Elements of a Valid Contract A. Agreement between the parties B. Reached with genuine, mutual assent C. Supported by consideration D. For a legal purpose E. By parties with capacity F. In the required form [if any] II. Requirement of a Valid Offer A. Contractual intention 1. Must intend a legal obligation 2. Objective standard applied i. See Catamount Slate Products, Inc. v. Sheldon, Case 10-1, text at 181 3. Not an invitation to do business or negotiate - (advertisements are not treated as offers). i. See Lefkowitz v Great Minneapolis Surplus Store, Case 10-2, text at 183 – A man was trying to generate business for his store. He runs an advertisement saying a particular item is for sale for some amount of money (to get people in the store). Court says you must sell item for this amount. Must state if quantities are limited and if there will be no rain checks. (These circumstances are now often covered by state statutes that prohibit businesses from enticing people into buying a regular item at a normal price by way of getting them in the door or otherwise known as "bait and switch," not they have to offer rain checks.) . 4. See Steinberg v. Chicago Medical School - Steinberg gets rejected from Chicago medical school and alleges that his rejection came, because the medical students at Chicago are all wealthy or related to alumni. Steinberg alleges that before his rejection, he entered a contract when he paid fifteen dollars as application fee. The appeals court agrees that Chicago medical did form an intention to enter into a contract and does not immediately dismiss the case. B. Definiteness - The offer must be clear, unambiguous, and contain all essential terms. These terms may be different depending on whether it is covered by the DCC. 1. The offer must state the subject matter. 2. The offer must state the parties involved. 3. The offer generally must state the price. 4. Some of these items may be less essential, depending on the item: terms of delivery, time of delivery, etc. 5. See UCC 2-204 (3). The offer must have the essential terms, but if terms are missing then a court may add them rather than say that there is no agreement. You can imply that certain terms are to be included. Even something you may consider to be an essential term may be left out given the right circumstances. For example, if the price is missing, and in past agreements between the two parties the price has been the market price, the court will enter the market value. But this doesn't necessarily hold for common law. 6. See Martin Delicatessen v. Schumacher - This is a non-DCC situation, because it deals with a real estate lease. The Martin Deli is the tenant of the building. In the five-year lease with the landlord, there is a provision to give Martin the option to renew within a certain time period. When the deli asks to exercise their option, the landlord gives them a higher rent for the following year (rent will change from $650 to $900), which the deli is unwilling to pay. (Fair market value rent determined on appraisal is closer to $600).
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern