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Unformatted text preview: tance: Acquiescence to enter into a contract under the terms of the offer.
3. Consideration: Anything of legal value that is asked for and received as the price for
entering into a contract.
4. Legality: The extent to which the contract is legal and not against public policy.
5. Capacity: The mental competency to enter into a contract. Additionally, there are
special rules for people who are under legal age. In some cases, there is a further requirement that the contract be in a particular form, for
example in writing, in order for it to be enforceable. In other situations, a contract may
prove not to be binding because the parties did not truly assent, such as in the case of fraud
or mistake. rog80328_04_c04_062-088.indd 63 10/26/12 5:42 PM We enter into contracts every day. On the way to work, you pick up a newspaper
at a newsstand. You also stop for a cup of coffee at a cafe. While there, you use
your phone to browse the Web and purchase tickets to a concert online. Finally,
you arrive at the bus stop and pay your fare as you enter the bus that will take you
to work or to class. In each of these examples, a contract was made. In each case,
there was a valid offer and acceptance (your ordering the drink and the cafe’s providing it), consideration (the cup of coffee and the money you pay for it), capacity and legality (you are (hopefully) of sound mind when purchasing the coffee,
and coffee is a legal good that can be purchased and sold in the United States).
There were no issues concerning mutual assent. No documents were signed, and
no negotiations took place; nevertheless, valid contracts were formed giving each
party certain rights and imposing on each party some responsibilities as well.
The vast majority of contracts are routinely completed without a problem, and without the interested parties giving the matter much thought. Problems arise when parties to a contract fail to live up to their agreements, or misunderstand what it is that
they agreed to do. In such c...
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- Spring '10
- Business Law