Contracts
Essential Element #1:
Offer
and
offeror
Acceptance
offeree
Gotta have both
Essential Element #2:
Consideration
Both sides have to give something up
(doesn’t have to be money)
A promise without consideration is
unenforceable.
I will always
love you
I’ll pick you up at 6:00
I’ll always be there for you
Essential Element #3:
Competent Parties
Matt Bowers, 2028
Max Carter, 2015
Essential Element #4:
Legal Purpose
Must have all four:
•
•
•
•
Offer and Acceptance
Mutual Consideration
Competent Parties
Legal Purpose
or there is no contract!
• A void contract is
dead
Contract
• A voidable
contract can be
killed
Express contract
• All the terms are stated orally or in writing
Greetings merchant! I
would like to buy this
pack of cigarettes for
$9.50!!!
I accept your offer!!!
Implied Contract
• A contract arises from the reasonable
interpretation of the actions of the parties
A
Next time you buy groceries,
don’t say a single word.
Quasi Contract -
Finding a contract where one of the elements is missing
(in the interests of fairness)
A valid contract is good (enforceable)
The Offeror makes an offer……….
The Offeree is the person to whom the offer is made.
(can accept, reject or ignore the offer)
An OFFER must be:
serious appear sincere to a reasonable person
definite specific as to the important details of the contract
communicated to the
offeree
I’ll give you $5.00
for Brie.
Githler
Advertisements and auctions are
invitations to make an offer
Any bids?
How an offer ends: (when can it no longer be accepted?)
Lapse of Time Either in the contract or after a
‘reasonable time’
Rejection by the Offeree
Counteroffer
by the Offeree
I will give you
five dollars
for that cat.
Make it seven
dollars and you
have a deal.
Githler
Carter
OFFER
OFFER
COUNTER-OFFER
How an offer ends: (when can it no longer be accepted?)
Revocation by the Offeror
Death/Insanity of the Offeror before acceptance
$5 for the cat.
Give me a
minute…
Githler
Oops! Too late!
Carter
Not so fast,
Githler.Selling
cats is now
illegal.
$5 for the cat.
Alive.
Cat dies.
Githler
Hunter
How an offer ends:
Impossibility It becomes impossible to perform the
contract (before acceptance)
Illegality The subject of the contract becomes
illegal (before acceptance)
The Acceptance
can be made only by the Offeree nobody else!
Yes! I’ll sell you
my cat for $5.00!
Githler
Mr. Carter, I’ll
give you $5.00
for that tastylooking cat.
Derfel
Carter
The Acceptance
must agree with the offer or it’s a counteroffer!
and it must be communicated to the offeror to
become a contract
I agree. You can
have the cat for
$5.00. Bon apetit!
Githler
I’ll give you
$5.00 for that
tasty-looking
cat.
Carter
An acceptance by mail is
delivered when it is
deposited in the mail!
You can’t make silence a form of acceptance.
If I don’t hear
anything from you
in the next two
seconds, then you
agree to sell me
your cat for $5.00.
Githler
Carter