Your SlideShare is downloading. ×
  • Like
Chapter 7 section1-3
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
1,223
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
28
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Business Law Unit 2/Chapter 7/Contracts
  • 2. Section 7.1 Goals
    • List the elements required to form a contract
    • Describe the requirements of an offer
    • Standards
      • PCCG OUTCOME: 7
      • PCCG STANDARDS: C: 1.1c, 1.1d, 1.1e, 1.1d, 1.2a, 1.3a, 1.4d, 1.6a, 1.6c, 1.6d, 1.6e, 1.7c, 1.8b, 1.8c, 2.2b, 5.1a, 5.1j, 5.1l, 5.2a, 5.3a, 5.3g, 5.4a,, 13.1e, 13.2b, 13.3b
  • 3. What’s Your Verdict?
    • Pedro and Seamus were chatting during the break between classes. “Remember, ‘Great Moments in Sports,’ the video that I showed you last week?” asked Pedro. “You thought it was great and said you wished it was your. I’ll let you have it for fifteen bucks. Want it? “Sure!” Seamus answered. “Bring it to school tomorrow, okay?”
    • Did the two friends create a contract?
  • 4. What is a Contract?
    • Contract
      • An agreement that courts will enforce.
      • Basis of all economic activity
    • 6 Requirements
      • Offer and Acceptance
      • Genuine Assent
      • Legality
      • Consideration
      • Capacity
      • Writing
  • 5. Offer and Acceptance
    • There must be serious, definite offer to contract. The terms of the offer must be accepted by the party to whom it was communicated
  • 6. Genuine Assent
    • The agreement must not be based on one party’s deceiving another, on an important mistake, or on the use of unfair pressure exerted to obtain the offer or acceptance.
  • 7. Legality
    • What the parties agree to must be legal.
    • So an agreement to pay someone to commit a crime or tort cannot be a contract.
  • 8. Consideration
    • The agreement must involve both sides receiving something of legal value as a result of the transaction.
  • 9. Capacity
    • To have a completely enforceable agreement, the parties must be able to contract for themselves rather than being obligated to use parents, or legal representatives
  • 10. Writing
    • Some agreements must be placed in writing to be fully enforceable in court.
  • 11. What or Who Are Contracts?
    • Contracts
      • Result from exchange of valuable promises
    • Offeror
      • Party who makes an offer to form a contract
    • Offeree
      • Party to whom and offer is made
    • Offer
      • Proposal by an offeror to do something provided the offeree does something in return
    • Without Offer or Acceptance there is no contract.
  • 12. What’s Your Verdict?
    • Anchor’s Aweigh, a boat retailer, placed an ad in a local newspaper announcing a one-day sale of cabin cruisers for the “bargain price” of $22,500 each. The dealer had five cruisers in stock, and they all were sold within one hour. During the rest of the day, seven other would-be buyers came in to purchase a bargain cruiser.
    • Did the Anchors Aweigh advertisement make offers to the would-be buyers?
  • 13. Requirements of a Valid Offer
    • The offeror must appear to intend to create a legal obligation
    • The terms must be definite and complete
    • The offer must be communicated to the offeree
  • 14. Expression of Intent to Create a Legal Obligation
    • Test of the Reasonable Person
      • Objective legal test used by jurors or judges to determine whether the offeror has shown an intent to contract
    • Facts and Circumstances
      • To actually know when the offer is valid aside from examples and things.
    • Preliminary Negotiations
      • Information presented without the intent to contract
    • Social Agreements
      • Do not require legal obligations (Going on a date)
  • 15. Offer Must Be Complete and Clear
    • Complete
      • Follows all the guidelines of the contract
    • Clear
      • Specific way to which it is handled
    • Implied Terms
      • Example: Current Market Price
    • Advertisements
      • Invitations not offers
      • Keeping business relations most places will provide a rain check.
  • 16. Offers Must Be Communicated of the Offeree
    • A person not the intended offeree cannot accept the offer.
    • Nor can you accept an offer without knowing that it was made.
    • Example
      • Reward
  • 17. Section 7.1 Goals
    • List the elements required to form a contract
    • Describe the requirements of an offer
    • Standards
      • PCCG OUTCOME: 7
      • PCCG STANDARDS: C: 1.1c, 1.1d, 1.1e, 1.1d, 1.2a, 1.3a, 1.4d, 1.6a, 1.6c, 1.6d, 1.6e, 1.7c, 1.8b, 1.8c, 2.2b, 5.1a, 5.1j, 5.1l, 5.2a, 5.3a, 5.3g, 5.4a,, 13.1e, 13.2b, 13.3b
  • 18. End of Section 7.1 Questions
    • Think About Legal Concepts
    • Think Critically About Evidence
  • 19. Section 7.2 Goals
    • Describe how an offeror can end an offer
    • Tell how an offeree can end an offer
    • Explain how the parties can create offers that cannot be ended by the offeror
    • Standards
      • Reading and Writing
        • 1.1.11 CDEFG, 1.2.11 AB, 1.3.11 C, 1.4.11 BCD, 1.5.11 ACE, 1.6.11 ACDF, 1.7.11 AC, 1.8.11 ABC
      • Civics and Government
        • 5.1.12 ABCDEFHIJM, 5.2.12 ABCDEFG, 5.3.12 AB
  • 20. What’s Your Verdict?
    • Melissa offered her collection of baseball cards for sale for $3,000 to her friend and fellow collector, Raoul. Raoul asked if he could think it over and Melissa agreed. While Raoul was trying to raise the money, Melissa has second thoughts. So she called Raoul and said I’ve changed my mind. I’m not interested in selling the cards. Raoul responded, “it’s too late, you promised to sell them to me and I’ve got the money, so I accept.
    • Was Melissa’s offer terminated before Raoul tried to accept?
  • 21. How Can Offers Be Ended?
    • Revocation by the Offeror
      • Decided not to do it
    • Time stated in the offer
      • One Week
    • Reasonable Length of Time
      • Within Reason
    • Rejection by the Offeree
      • Does not accept offer
    • Counteroffer
      • Changing the offer terms in any way
    • Death or Insanity of either the offeror or offeree
  • 22. How Can An Offer Be Kept Open?
    • What’s Your Verdict? Pg. 104
    • Options
      • Giving the Offeror something in order for them to give you a promise that cannot be completed at the time of the contract
    • Firm Offers
      • Binding offer stating in writing how long it is to be held open.
  • 23. Section 7.2 Goals
    • Describe how an offeror can end an offer
    • Tell how an offeree can end an offer
    • Explain how the parties can create offers that cannot be ended by the offeror
    • Standards
      • Reading and Writing
        • 1.1.11 CDEFG, 1.2.11 AB, 1.3.11 C, 1.4.11 BCD, 1.5.11 ACE, 1.6.11 ACDF, 1.7.11 AC, 1.8.11 ABC
      • Civics and Government
        • 5.1.12 ABCDEFHIJM, 5.2.12 ABCDEFG, 5.3.12 AB
  • 24. End of Section 7.2 Questions
    • Think About Legal Concepts
    • Think Critically About Evidence
  • 25. Section 7.3 Goals
    • Discuss the requirements of an effective acceptance
    • Determine at what point in time an acceptance is effective
    • Standards
      • Reading and Writing
        • 1.1.11 CDEFG, 1.2.11 AB, 1.3.11 C, 1.4.11 BCD, 1.5.11 ACE, 1.6.11 ACDF, 1.7.11 AC, 1.8.11 ABC
      • Civics and Government
        • 5.1.12 ABCDEFHIJM, 5.2.12 ABCDEFG, 5.3.12 AB
  • 26. What’s Your Verdict?
    • Darrow offered to trade his digital camera to Monette in exchange for her camcorder. Schorling, who had a camcorder of the same make and model, overheard the offer and said she would make the swap.
    • Did a contract result from Schorling’s statement?
  • 27. How Are Acceptances Created?
    • Acceptance
      • Occurs when a party to whom an offer has been mde agrees to the proposal.
    • Acceptance Must:
      • Be made by the person to whom the offer was made
      • Match the terms in the offer
      • Be communicated to the offeror
  • 28. Who Can Accept An Offer?
    • Reward
      • Offer to the general public, anyone that knows about it can accept it.
    • Offeree
      • Person/Individual who the offer is presented. No one can accept an offer unless it is directed to them
  • 29. Acceptance Must Match Offer
    • Due to specific terms stated in the contract, Acceptance must fall within the guidelines of the contract
    • Mirror Image Rule
      • Requires that the terms in the acceptance must exactly match the terms contained in the offer.
      • If varied, it is a counteroffer.
  • 30. Acceptance Must Match the Offer
    • Goods
      • Sale of Goods
    • Read on page 106 (Blue Box)
  • 31. Acceptance Must Be Communicated to the Offeror
    • Silence as Acceptance
      • Signal that its okay unless someone rejects it is considered acceptance
    • Unilateral Acceptance
      • Indicating acceptance by performing something, promise from offeror to give something for performance
    • Bilateral Acceptance
      • Giving a promise instead of performance
    • Acceptance Effective
      • Orally, written, sent by mail, email, fax only effective when received
  • 32. End of Section 7.3 Questions
    • Think About Legal Concepts
    • Think Critically About Evidence
    • Chapter In Review
  • 33. Section 7.3 Goals
    • Discuss the requirements of an effective acceptance
    • Determine at what point in time an acceptance is effective
    • Standards
      • Reading and Writing
        • 1.1.11 CDEFG, 1.2.11 AB, 1.3.11 C, 1.4.11 BCD, 1.5.11 ACE, 1.6.11 ACDF, 1.7.11 AC, 1.8.11 ABC
      • Civics and Government
        • 5.1.12 ABCDEFHIJM, 5.2.12 ABCDEFG, 5.3.12 AB