BELL RINGER

WHAT DO YOU THINK MAKES A CONTRACT DIFFERENT FROM AN AGREEMENT?

“LEONARD V. PEPSI”

http://www.youtube.com/watch?v=ZdackF2H7Qc

BUSINESS LAW

CONTRACT LAW

BUSINESS AND PERSONAL LAW

Mr. Khatcheressian 12/03/2013

http://www.youtube.com/watch?v=VnChrJuX7xg

OBJECTIVES

Students will define “contract” in regards to the legal system

Elements of Contract How Contracts come to an end.

AGENDA

Bell Ringer Objectives Key Terms / Chapter Survey 6 Elements of a Contract Characteristics of a Contract Case Study (pair up) Closure

FILL IN THE BLANK

WHEN I ACCESS A MUSIC DOWNLOAD SERVICE ON THE INTERNET, I HAVE TO READ A DOCUMENT CALLED A ______________AND CHECK A BOX THAT SAYS THAT I ________________THE TERMS OF THE AGREEMENT.

FILL IN THE BLANK

WHEN I ACCESS A MUSIC DOWNLOAD SERVICE ON THE INTERNET, I HAVE TO READ A

DOCUMENT CALLED A CONTRACT AND

CHECK A BOX THAT SAYS THAT I ACCEPT THE TERMS OF THE AGREEMENT.

KEY TERMS

CONTRACT OFFER ACCEPTANCE GENUINE AGREEMENT EXPRESS CONTRACT IMPLIED CONTRACT BILATERIAL CONTRACT UNILATERIAL CONTRACT

SIX ELEMENTS OF A CONTRACT

An agreement is not a contract unless it contains the six elements of a contract:

Consideration Capacity Legality Offer Acceptance Genuine Agreement

CONSIDERATION

THE THING OF VALUE PROMISED TO ONE PARTY IN A CONTRACT IN EXCHANGE FOR SOMETHING ELSE OF VALUE PROMISED BY THE OTHER PARTY.

CAPACITY THE LAW PERSUMES THAT ANYONE

ENTERING A CONTRACT HAS THE LEGAL CAPACITY TO DO SO. Example-Getting Married MINORS ARE GENERALLY EXCUSED FROM

CONTRACTUALY RESPONSIBILITY AS WELL AS MENTALLY IMPAIRED PEOPLE AND INDIVIDUALS UNDER THE INFLUENCE.

LEGALITY

PARTIES ARE NOT ALLOWED TO ENFORCE CONTRACTS THAT INVOLVE ILLEGAL ACTS. SOME ILLEGAL CONTRACTS INVOLVE AGREEMENTS TO COMMIT A CRIME OR A TORT (A private wrong committed by one person against another)..

OFFER

A proposal by one party to another intended to create a legally binding agreement

EXAMPLE- A CAR DEALER OFFERS YOU A PRICE ON A CAR.

RANDOM FACT OF THE DAY

Chuck Norris counted to infinity twice.

ACCEPTANCE

The second party's unqualified willingness to go along with the first party's proposal

GENUINE AGREEMENT

An agreement that is true and genuine: a valid offer is met by a valid acceptance

BILATERAL CONTRACT

A bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to the other party or parties.

For example, in a contract for the sale of a home, the buyer promises to pay the seller $200,000 in exchange for the seller's promise to deliver title to the property.

UNILATERAL CONTRACT

In a unilateral contract, only one party to the contract makes a promise.

A typical example is the reward contract: A promises to pay a reward to B if B finds A's dog. B is not under an obligation to find A's dog, but A is under an obligation to pay the reward to B if B does find the dog.

CHARACTERISTICS OF A CONTRACT

EXPRESS- oral or written IMPLIED- no single word is exchanged (comes

from the actions of the parties involved). Example-paying cash in advance to pump gas.

ON YOUR OWN AND IN YOUR OWN WORDS-BE PREPARED TO TURN IN AND SHARE.

Find a related contract law case via the internet and break it down as follows: FACTS-Who are the parties to the lawsuit, what

is their dispute

ISSUE-What is the basic legal question regarding what specific provision of law that is to be decided in the case?

HOLDING- What is the majority’s basic answer to the basic legal question in the case

RULE-What rule of law is announced in the case?

EXIT TICKET Today we learned that a contract is an agreement

forcible by law. Anything that is illegal, cannot constitute a legally binding contract such as a contract to sell drugs, steal, or commit murder.

For your exit ticket , please make a list of 5 things that you think require written contracts.

Number one has been given to you as an example.

1. sales contract for the buying or selling of a good or service