Formation of a contract offer and acceptance what is

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Formation of a Contract: Offer and Acceptance What is a Contract? A contract is a voluntary agreement b/w two sides to go into a legal relationship ( a contract may be created through verbal or writing, a contract to be written is NOT a requirement of a contract for it to exist)Full Binding Contract in order for a fully binding contract to exist you must have 3 elements.1) OFFER 2) ACCEPTANCE 3) CONSIDERATION All elements must exist in order to have a fully binding contract.ALL ELEMNTS MUST BE VOLUNTARY1.Offer (a)Offer vs. Invitation to Treat (b)Basic Rules that Apply to the Offer i)Knowledge of the Offer ii)Lapse An offer may lapse in 3 ways 1)The offeror may set a Lapse date2)If offer is silent, then the offer will lapse at a reasonable time. 3)An offer may lapse if either of the partied have died or gone insane before the acceptance. iii)Revocation ( with draw from offer ) Revoke before acceptance even if promised to keep offer open , even before lapse date BUT not after acceptance(a)Option contract within a contract” to keep offer open by paying money , this is full bindingiv)Counter Offer(Negotiation) 1)Original offer falls off the table, no longer exist ever! 2)New offer on the table v)Counter Offer vs. Mere Inquires
Mere inquires are not new offers but just mere inquiries about the original offer , questions about the 1stoffer??? 2.Acceptance An acceptance is in indication made to the offerer that the offer made is accepted by the offeree , the acceptance must be made is some form of positive conduct to communicate the consent of the acceptance of the contract. (a)Basic Rules that Apply to Acceptance i)Communication of Acceptance ( same form as offer , words or conduct ) ii)Postal Rule ( mail to mail offer & acceptance ) iii)Silence Can Not Be Acceptance iv)Unilateral Contracts ( acceptance by performance ) (b)Terms and Provisions Contained in The Specific Contracts and the Acceptance There Of i)Tickets ( deemed accepted reasonable terms NOT unreasonable unexpected ) ii)Standard Form Contractsiii)Insurance Contracts Required Notice Terms-------- > deemed to Accepted Unreasonable or Unexpected -------- > not deemed to accepted unless brought to your attention.
Chpt 6 Formation of a Contract: Consideration 3. (a) Consideration Consideration in its most basic form is the exchange of promises; rights, interest or some form of benefit accruing to both parties involved in the contract- on the other hand some detriment or loss that is giving to a party.in order to have a fully binding contract , the contract must entail consideration to both sides of the partyconsideration generally comes after the Offer and Acceptanceconsideration may also be a promise not to do something(b) Consideration vs. Gratuitous Promise ( gratuitous promise ------- > Gift ) (c) Adequacy of Consideration ( irrelevant to courts) i)exceptions to adequacy to considerationmay be if evidence points to duress, fraud or if one of the parties are under the influence (d) Past Consideration ( “past consideration is no consideration )

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