Contracts PowerPoint Presentation


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Contracts PowerPoint Presentation

  1. 1. • A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.• We will focus on 4 topics:  Offer and acceptance  Consideration  Duties and enforcement  Defenses
  2. 2.  Offer: Showing a willingness to enter into a bargain in such a way that another person would interpret that they could accept and it would conclude the negotiations. Can be through words or actions. Advertisements can be offers. Negotiations are not offers. Buyers have to be able to walk away from estimates or price quotes.
  3. 3.  Acceptance- once an offer has been made, the other party can accept the offer in any reasonable way, including starting performance. The party who accepts can back out up until performance begins. Factors include:  Were terms finalized? Did performance begin?
  4. 4.  Consideration: A contract must include a promise and a return promise. It cannot only go in one direction. Both parties have to get something valuable (a good or service). A promise of a gift is not enforceable because one party gets nothing. The exchange doesn’t have to be equal- one person may value something more than someone else.
  5. 5.  Substantial Performance- Doing exactly what is in the contract is not always possible, but the parties have to reasonably live up to the terms. If one party does not materially perform, the other party no longer has to perform. Failure to perform is called “breach.”
  6. 6.  What happens when one party breaches? Damages- The party who is harmed can request money from the other party equal to the loss from the breach. Specific performance- If it is still possible to perform the contract, the court can require the party to perform.
  7. 7.  Read Scenario 1 on the worksheet, then post your new negotiated contract in the Contract Blog.
  8. 8.  Certain things can make contracts void even though both parties agreed on the terms and there was valuable consideration. Unconscionability- If one party tricked another party into agreeing to an unfair contract, the court may not enforce it.  Often comes up when businesses try to trick poor or uneducated clients.
  9. 9.  Fraud or Duress- Lying or misrepresenting something in negotiations can make a contract void.  Also, taking advantage of someone in a bad situation can make a contract void.  If a company knows about a flaw in a product and covers it up, the contract to buy it is void.
  10. 10.  Legality - If the terms of a contract require illegal behavior, or if they go against Congress’ stated goals, it will be declared void.
  11. 11.  Read Scenario 2 of the worksheet, and post your response in the Contract Blog
  12. 12.  See the instructions on the Safe Driver Contract