CONTRACTS ARE…..
Legal links between producers and consumers
that help to get most of the worlds work done.
AN OFFEROR IS…
The one who MAKES the offer to
contract.
AN OFFEREE IS…
The one that may accept the
contract but is not required to
do so.
TO NULLIFY OR VOID
CONTRACTS
Minors can at anytime
If a contract is made between a
minor and an adult only the
minor can disaffirm.
AN ADVERTISEMENT IS…
NOT an offer to sell even when
the advertiser is eager to make
sales.
PROPERLY MADE OFFER
May be ended by
Acceptance
Rejection
Modification
Counteroffers
Death or Insanity
Time Stated
FIRM OFFERS
•
•
•
•
•
Binding
Must be in Writing
Only by Merchants
Definite Time-No Longer than 3 months
No money needed to keep the offer open
QUESTIONS 7 and 11
CAN NOT MAKE CONTRACTS
• Intoxicated by drugs or alcohol (this
doesn’t mean anyone who uses)
• Insane or mentally deranged
• Minors
MINORS MAY VOID OR NULLIFY
BECAUSE…
To protect minors from
exploitation, fraud, and
dishonest persons.
They lack knowledge needed to
enter into contracts wisely
Lack maturity, experience, and
overall ability needed.
A VALID OFFER IS?
Must know these 3 things.
Must Intend to create a legal
obligation
The terms must be definite and
complete
Must be communicated to the
offeree
AN OFFER TO CONTRACT, IF
NOT ACCEPTED IS ENDED BY
Time stated or reasonable length of time
(perishable goods)
Rejection (saying No Thanks)
Counteroffers
Revocation (taking it back before the
offeree does anything)
Modification
Death – Not illness
ACCEPTANCE OF AN OFFER
TO CONTRACT MUST BE…
COMMUNICATED to the OFFEROR
EXCEPTIONS TO THE
REQUIREMENT OF DEFINITENESS
Exceptions:
• Medical or Legal Services
No Exception must be Definite
• Employment contracts
Sale of land
Sales by merchants
A VALID CONTRACT CAN
BECOME UNENFORCEABLE
WHEN…
The time to sue has elapsed
because of statute of limitations
Defendant has gone bankrupt
and there are no assets to get.
Defendant dies and there are no
assets.
ADD TO THE BOTTOM OF
YOUR STUDY SHEET.
Option Offer
 Giving something of value to keep the offer open (selling a
house and they give you $5000 to not sell it to someone
else)
Unilateral Contracts
 Only one party makes the contract (Reward $100 to find my
dog)
Bilateral Contracts
 2 or more people make a contract
An agreement is NOT a Contract
Capacity to contract means
 A person has the ability to understand his or her actions