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Elements of an express contract (6) 1. Offer (offeror/Offeree)
2. Acceptance
3. Consideration
4. Capacity
5. Legality
6. Intent
Common law (cases) and statues (laws) Contract law is derived from what two things?
offer (Elements of an express contract) (1) A valid offer communicated and accepted.
-offeror: A person who makes an offer.
-offeree: A person to whom an offer is made.
acceptance (elements of an expressed contract) *Voluntary act by the offer that shows an
agreement to the terms of an offer. May consist of words or conduct.*
,BUSA EXAM 2 PERRY BINDER GSU With
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-An offeree's response to an offer, rejecting the original offer and making a new offer at the same
time. Person receiving the offer changed the original offer so wash my car for $30? No ill do it
for $50.
-*counteroffer*: Responds to original offer and comes up with new terms
consideration Both sides must give up and receive semi-equal values. The value given in
return for a promise. Must be something of legally sufficient value, and there must be a
bargained for exchange. The deal or the contracts have to be where both sides get and receive
semi-equal value.
and promissory estoppel *-promissory estoppel:*Promissory Estoppel No contract, but
you promised (Detrimental Reliance) when you promised, I relied on that promised, and thus I
got harmed
(acted before promise was made) Prom story
past consideration Bad or no consideration. Consideration that took place in the past or
that is given for something that has already been done. Swimmer doesn't know me. Were at lake
and my friend is drowning. Swimmer saves the life. Give him $1000 tomorrow.
,BUSA EXAM 2 PERRY BINDER GSU With
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capacity
-void
-voidable
-unenforcable *legal ability of Who can and can't enter a contract. *
*void*: *void neither side can enforce (illegal).* certain things like contracts illegal is plain old
void, lack of capacity (if a prior judge ruled lack of capacity) then its void
*voidable:* *one side can choose to enforce it or get out of it* Contract may be legally avoided
or cancelled at the option of one or both of the parties. One side can choose to enforce and a
judge determines what is enforceable what is not enforceable. Can decide to enforce or get our
the contract.
*unenforceable:* Up to a judge, A valid contract rendered unenforceable by some statute or law.
capacity
-minor
-intoxication
-insanity
-undue influence
-duress *minor*: you're under 18, contracts are *voidable*at option of minor. unless
*student loans, business, necessity*
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*intoxication*: person under the influence
intoxicated person is *VOIDABLE* at his option once sober
*duress*: you are actually forced to sign contract, gun to head, if you can prove then theyll let
you out
*undue influence*: person of trust trying to influence like a kid trying to get grandma to leave all
to them
*insanity:* 1- if some prior court found that you lacked capacity. Any contract you enter into will
be considered void. But this is very rare. 2- if no prior courts have ruled you lacked capacity.
Then it is voidable at the guardian's option. *lacks capacity*
legality
-usury, gambling -contracts must be legal or they will be void
-think of title pawn or any contract where you have an interest rate higher than the law allows,
*usury deals with interest rates that exceeds maximum allowed* (usuries)
contract of adhesion One party prepares a contract and submits it to the other party on a
"take-it-or leave-it" basis (without negotiation).
Solutions 100% Complete
Elements of an express contract (6) 1. Offer (offeror/Offeree)
2. Acceptance
3. Consideration
4. Capacity
5. Legality
6. Intent
Common law (cases) and statues (laws) Contract law is derived from what two things?
offer (Elements of an express contract) (1) A valid offer communicated and accepted.
-offeror: A person who makes an offer.
-offeree: A person to whom an offer is made.
acceptance (elements of an expressed contract) *Voluntary act by the offer that shows an
agreement to the terms of an offer. May consist of words or conduct.*
,BUSA EXAM 2 PERRY BINDER GSU With
Solutions 100% Complete
-An offeree's response to an offer, rejecting the original offer and making a new offer at the same
time. Person receiving the offer changed the original offer so wash my car for $30? No ill do it
for $50.
-*counteroffer*: Responds to original offer and comes up with new terms
consideration Both sides must give up and receive semi-equal values. The value given in
return for a promise. Must be something of legally sufficient value, and there must be a
bargained for exchange. The deal or the contracts have to be where both sides get and receive
semi-equal value.
and promissory estoppel *-promissory estoppel:*Promissory Estoppel No contract, but
you promised (Detrimental Reliance) when you promised, I relied on that promised, and thus I
got harmed
(acted before promise was made) Prom story
past consideration Bad or no consideration. Consideration that took place in the past or
that is given for something that has already been done. Swimmer doesn't know me. Were at lake
and my friend is drowning. Swimmer saves the life. Give him $1000 tomorrow.
,BUSA EXAM 2 PERRY BINDER GSU With
Solutions 100% Complete
capacity
-void
-voidable
-unenforcable *legal ability of Who can and can't enter a contract. *
*void*: *void neither side can enforce (illegal).* certain things like contracts illegal is plain old
void, lack of capacity (if a prior judge ruled lack of capacity) then its void
*voidable:* *one side can choose to enforce it or get out of it* Contract may be legally avoided
or cancelled at the option of one or both of the parties. One side can choose to enforce and a
judge determines what is enforceable what is not enforceable. Can decide to enforce or get our
the contract.
*unenforceable:* Up to a judge, A valid contract rendered unenforceable by some statute or law.
capacity
-minor
-intoxication
-insanity
-undue influence
-duress *minor*: you're under 18, contracts are *voidable*at option of minor. unless
*student loans, business, necessity*
, BUSA EXAM 2 PERRY BINDER GSU With
Solutions 100% Complete
*intoxication*: person under the influence
intoxicated person is *VOIDABLE* at his option once sober
*duress*: you are actually forced to sign contract, gun to head, if you can prove then theyll let
you out
*undue influence*: person of trust trying to influence like a kid trying to get grandma to leave all
to them
*insanity:* 1- if some prior court found that you lacked capacity. Any contract you enter into will
be considered void. But this is very rare. 2- if no prior courts have ruled you lacked capacity.
Then it is voidable at the guardian's option. *lacks capacity*
legality
-usury, gambling -contracts must be legal or they will be void
-think of title pawn or any contract where you have an interest rate higher than the law allows,
*usury deals with interest rates that exceeds maximum allowed* (usuries)
contract of adhesion One party prepares a contract and submits it to the other party on a
"take-it-or leave-it" basis (without negotiation).
