Contract Law
Contract- an agreement between two or more persons that is enforceable by law; that is supported by consideration
● Partnership agreements, real estate sales agreements, leases, and licensing agreements
● Contracts for the sale of goods are governed by the Uniform Commercial Code
● "K" is often used as legal shorthand for "contract"
Elements of a Contract:
Mutual Consent- both parties must agree to the same terms
● Offeror makes an offer which offeree must accept in a timely manner
● The Offer- 1. the offeror must intend to enter into a contract
2. the offer must be communicated to the offeree
3. the essential terms must be certain and definite
● Intent- sometimes people discuss the possibility of a deal without intending to make an offer
-intent may also be questionable if offer is made in jest- "I'd give my left arm…"
● Communication- must be communicated directly to the offeree
-third party cannot accept an offer made to another person
● Inquiries are different from offers.
● Essential terms are - subject matter
- quantity
- price
- time
● Revocation:
-may be revoked at any time if open indefinitely
-may have a deadline
-no consent if offeree makes a counter that is not acceptable
● Option- a promise to keep an offer open for a period of time
● Advertisements- may not be an enforceable offer (generally not specific about quantity)
● Auctions- common law rules of traditional auctions apply to online bidding sites
- the auctioneer is viewed as someone inviting an offer. The bid is the offer, and the auctioneer is free to reject that offe
or wait for a better one
● The Acceptance- 1. must comply with method designated by the offeror
2. must do so in a timely manner
3. must not vary the terms of the offer
● Bilateral Contract- both parties have made promises to perform; two promises
-Ex: I promise to sell you my car if you promise to pay me $5000
● Unilateral Contract- the offer is accepted by performance rather than a promise; one promise
-Performance is acceptance
-Ex: I promise to pay you $100 if you clean my house
● There is a time limit to acceptance; if no time limit is stated, a reasonable amount of time is presumed
● Mirror-Image Rule- rule of contract law providing that the acceptance of an offer cannot vary or add to the terms of the offer
-Grumbling Acceptance- someone isn't very happy about the terms, but they do it anyway
Contract- an agreement between two or more persons that is enforceable by law; that is supported by consideration
● Partnership agreements, real estate sales agreements, leases, and licensing agreements
● Contracts for the sale of goods are governed by the Uniform Commercial Code
● "K" is often used as legal shorthand for "contract"
Elements of a Contract:
Mutual Consent- both parties must agree to the same terms
● Offeror makes an offer which offeree must accept in a timely manner
● The Offer- 1. the offeror must intend to enter into a contract
2. the offer must be communicated to the offeree
3. the essential terms must be certain and definite
● Intent- sometimes people discuss the possibility of a deal without intending to make an offer
-intent may also be questionable if offer is made in jest- "I'd give my left arm…"
● Communication- must be communicated directly to the offeree
-third party cannot accept an offer made to another person
● Inquiries are different from offers.
● Essential terms are - subject matter
- quantity
- price
- time
● Revocation:
-may be revoked at any time if open indefinitely
-may have a deadline
-no consent if offeree makes a counter that is not acceptable
● Option- a promise to keep an offer open for a period of time
● Advertisements- may not be an enforceable offer (generally not specific about quantity)
● Auctions- common law rules of traditional auctions apply to online bidding sites
- the auctioneer is viewed as someone inviting an offer. The bid is the offer, and the auctioneer is free to reject that offe
or wait for a better one
● The Acceptance- 1. must comply with method designated by the offeror
2. must do so in a timely manner
3. must not vary the terms of the offer
● Bilateral Contract- both parties have made promises to perform; two promises
-Ex: I promise to sell you my car if you promise to pay me $5000
● Unilateral Contract- the offer is accepted by performance rather than a promise; one promise
-Performance is acceptance
-Ex: I promise to pay you $100 if you clean my house
● There is a time limit to acceptance; if no time limit is stated, a reasonable amount of time is presumed
● Mirror-Image Rule- rule of contract law providing that the acceptance of an offer cannot vary or add to the terms of the offer
-Grumbling Acceptance- someone isn't very happy about the terms, but they do it anyway
