Lecture 4: Offer, Accept, Consideration, Capacity, Assent, Legal Purpose Contract law Spot whether or not you have a binding agreement Proposal To make a contract you make a statement that starts with an offer Doesn’t have to be formal Lucy vs. Zelmer Zelmer had a farm for a lot of years passed down Lucy wanted to expand his landholdings as much as possible Every time neighbor would come in town she would make an offer Zelmer would never be interested Zelmer offered a lot of money than they have to embarrass them Zelmer wrote on the napkin to sell the farm to Lucy for $50,000 when the farm was worth $30,000 and signed it Lucy showed up with check and wanted to move in Zelmer case was around his testimony that it wasn’t his intention to sell the farm and he wanted to get rid of Lucy 3 basic objective reasonable person standards to assess What would a reasonable person think? Asked to determine if it was a reasonable deal or if you could tell with reasonable certainty what offer was JURY SAID YES
Reasonably legitimate sounding offer where its clearly not a joke, context doesn’t matter, focusing on what words were said and written JURY SAID YES Whether a reasonable person would think the offer could be accepted immediately JURY SAID YES Don’t have to use the word offer in the statement, as long as it passes that three part test Jury think counts as offer and Zelmer had to sell farm for $50,000 Once an offer is made there are only two things that can happen Accepted Respond in way a reasonable person thinks you want the deal Terminated Rejected Respond in a way that indicates you don’t want deal Revoked By person who makes deal, say you don’t want to offer Can be taken back at any point before someone accepts Next it’s permanent as long as there aren’t problems with checklist How to block someone from revoking an offer You don’t want to have a complicated offer where you spend time analyzing and then the offer is revoked Two methods Pay someone If you give someone money specifically to keep an offer open for specific time they have to keep it open If you get a written promise from a business If you test drive and want to buy car but looking to see something else first you get a written promise from dealership on price until a certain date so they cant sell the car until that certain point in time
Contract law Most come from common law Legal principles established in old court decisions Apply to services contracts (job, cell phone, internet) Uniform commercial code Statute that applies to certain kinds of contracts Contract of goods
You've reached the end of your free preview.
Want to read all 35 pages?
- Spring '08
- The Land, the deal