Creation of Offers
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involve the payment of a licensing fee or a royalty fee.
Copyright © Texas Education Agency, 2013. All rights reserved.
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Offer and Acceptance
Offerer
– person who makes the offer
Offeree
– person to whom the offer is made
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3
Genuine Assent
The agreement MUST NOT be based on
– one party’s deceiving another
– an important mistake
– The use of unfair pressure exerted to obtain the
offer or acceptance
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4
Legality
Agreement cannot involve a crime.
Agreement cannot involve a tort.
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5
Consideration
Both sides receiving what the law considers
value in some form as a result of the
transaction
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6
Capacity
Parties must have the legal ability to contract
for themselves.
Parties without capacity:
– Not legal age to enter the agreement
– Under the influence when signing the contract
– Lack the mental capability to enter the contract
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7
Writing
Contracts should be in writing to be enforced
by the court of law.
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Requirements of an Offer
Must have Contractual Intent
– Jests: The law is not concerned with what is
actually in the mind of a persona making what
might b considered an offer. Jokes can be upheld
as offers.
– Statements made in anger or terror are not
legally enforceable.
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Requirements of an Offer
Preliminary Negotiations
– Communication to induce someone to initiate
bargaining
– Not seen by the law as an intent to contract
Social Agreements are Not Enforceable
– Date to the movies
– Dinner date
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Other Requirements of an Offer
 Offer Must Be Communicated to the Offeree
 Essential Terms Must Be Definite
 Essential Terms Must Be Complete
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–
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Proper legal description of the real estate
Price
Full terms for payment
Date for delivery of possession
Date for delivery of the deed
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Assignments
Independent Practice Assignments
1. Requirements for Contracts Flash Card Assignment: Ask students to design a
set of six flash cards that represent the six major requirements for a legally
enforceable contract. One side of the flash card should have the requirement
written on it and a definition. The other side of the flash card must show a
picture that represents the concept.
2. Write a Case: Split the class into teams with two members. Each team
must write two case studies—one that represents a legal contract and one that
doesn’t meet the requirements of a legal contract. All cases will be compiled
and students will look at each case to see if it has the six elements necessary
for a legally enforceable contract.
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