what are the elements of a contract? there are 6 major requirements that must be satisfied before...
TRANSCRIPT
OFFER AND ACCEPTANCEWhat are the elements of a contract?• There are 6 major requirements that must be
satisfied before courts will treat a transaction as a legally enforceable contract.
1. Offer and acceptance• Offeror- The person who makes the
offer.• Offeree- The person to whom it is made.
2. Genuine Assets3. Legality4. Consideration5. Capacity 6. Writing
What are the requirementsof an offer?
Offer- is an proposal by an offeror to do something, provided the offeree does or refrains from doing something in return.
1. Contractual Intent Must Be Present.
2. The offer must be communicated to the offeree.
3. The essential terms of the offer must be complete and definite.
How Can Offers Be Ended?An offer can be revoked anytime before it is accepted by the person who offers the deal.• It can be ended in many ways such as:
-Revocation by the other.-Time stated in the offer.
-Reasonable length in time
- Rejected by the offeree.- Counteroffer- Death or insanity of either the offeror or offeree.
- Destruction of the specific subject matter.
Offers Can Be Ended…
How Can an Offer Be Kept Open?
An offer can be kept open through:•Options:
-When the offeror gives something of value in return to keep the offer open.
•Firm offers:- A written offer that contains how long the offer should is to stay open.
How Are Acceptances Created?
Acceptance- occurs when a party to whom an offer has been made agrees to the proposal.
1. Come from the person or person the offer was made.
2. Match the terms in the offer.3. Be communicated to the
offeror.
How Can You Prevent Legal Difficulties When Entering
Into a Contract? 1. Make sure the offer is valid.
• Have it in writing• Make sure everyone in the contract
is in agreement.2. Make sure contract is accurate and
complete.3. Every detail is stated.
4.The offeree and offeror have signed the complete contract.
Genuine Agreement
What is Genuine Agreement and Rescission?
•Genuine assets- (true and complete agreement)
•Rescission- When the party has the legal right to get back what has already been put into the contract.
What is Undue Influence?
Undue influence - occurs when one party in the contract is in a position of trust and wrongfully dominates the other party.
What is unilateral mistake?
Unilateral mistake – When only one party holds an incorrect belief about the facts or law related to a contract.
What are Mutual Mistakes?
Mutual Mistakes- Also known as bilateral mistakes, both parties have an incorrect belief about an important fact or the applicable law.
WHAT IS MISREPRESENTATION?
When….1. The untrue statement is one of fact
or there is concealment.2. The statement is material to the
transaction or is fraudulent.3. The victim reasonably relied on the
statement.
What is Fraud?What is the remedy for fraud?
Fraud- Misrepresentation of an intentional existing important fact.Remedy of fraud:
1.Recession 2.Damages