Contracts Yevgeniya RadMs.Crocket Business, Law 3rd period 11-2-12
Contracts: legal agreement enforceable by law.Every time you buy something you go through a contract. There are 6 elements of a contracts:1.)Offer2.)Acceptance3.)Genuine Agreement4.)Capacity5.)Consideration6.)Legality
Offer Offer: proposal by one party to another with intent to create legal binding agreement.There is an offeror makes the offer and the offeree is who the offer is made toThere are 3 requirements of an offer:1.)Serious intent, must intend to make the offer. Not an advertisement.2.)Define and certain. Has to include definite words3.)Communicate to offeree, it can be through internet, mail, phone, ect.
Acceptance Acceptance: unqualified willingness to go with offer. Mirror image rule: Terms stated in the acceptance must exactly mirror or match the terms of the offer.5 ways to terminate an offer:1.)Rejection: Refusal of an offer by offeree that brings the offer to an end.2.)Revocation: Taking back of an offer by offeror.3.)Counter offer: offeree makes offer or becomes offeree.4.)Expiration of Time5.) Death or Insanity
Genuine Agreement Genuine Agreement: valid offer by acceptance then a genuine agreement exists, can be destroyed by fraud, misrepresentation, duress, or undue influenceUnilateral Contract: Promise only by one person to do somethingBilateral Contract: Contract contains two promisesInnocent Misrepresentation occurs when the seller or offeror makes an innocent statement that turns out to be falseDuress is overcoming a person’s will by use of force or by threat of force or bodily harmUndue influence occurs when a person uses unfair and improper persuasive pressure to force another person to enter into an agreement.
Capacity Capacity: legal ability to enter into contract, ex minor, mentally ill, drunk, drugs• A minor usually cannot form an enforceable contract• If someone is in a contract and at that time of the contract, the contract will only be avoided if the other party knew the person was intoxicated and took advantage of them.• The contract will also be removed if the person is mentally ill.
Consideration• Consideration: must exchange something of value in order to create a bond• A benefit is something a party was not previously entitled to receive• A detriment is any loss suffered• Three Types of consideration :• Giving up or promising to give up something that you have the legal right to keep.• Doing something or promising to do something that you have the legal right not to do.• Forbearance – not doing something that you have a legal right to do.
Legality• Legality: must be permitted by law, courts will not enforce an illegal contract• There are 6 types of statutes and 6 types of public policies
Why are contracts so complex?• Contracts are so complex so you can protect your rights along with the other partys rights. So no fraud would happen and you will have proof of what you said was in the contract.