attributes of the contractual relationship

Question 1

what does an agreement between two or more person be?

Answer 1

voluntary assent, consensual relationship that is objectively determined (words and conduct are evaluated).

Question 1

what is a contract?

Answer 1

1. an agreement between two or more people
2. an exchange relationship
3. with at least one promise
4. that is enforceable by law

Question 2

what happens in the exchange element?

Answer 2

The parties have reached a bargain leading to a reciprocal exchange of benefits desired by each party.

Question 3

what is a promise?

Answer 3

an undertaking to act or refrain from acting in a specified was at some future time.

Question 4

what is the ordinary remedy for breach of contract?

Answer 4

compensatory damages

Question 5

what is an efficient breach?

Answer 5

if the breacher’s cost to perform would exceed the benefit that performance would give to both parties—the breacher makes enough gains by breaching to enable to pay compensatory damages to the breach victim and still be out ahead.

Question 7

Subjective Evidence

Answer 7

What someone was thinking when they entered the contract
-> persuasive

SR International: A contracting party’s subjective understanding of a contract provide an objective understanding
Reasonable Person Construct: subjective understanding must be used reasonably relationship between parties

Question 8

Checklist

Answer 8

1) Is there a contract?
2) If there is a contract, can one party get out of it? (Can it be avoided)
3) If it can’t be avoided, who’s the remedy breach?

• contract law does not aim to punish

Question 9

Elements of a Contact
What is a contract?

Answer 9

1) Exchange relationship
2) Created by agreement
- freedom of contract
- objective manifestation outward
3) Containing at least ONE promise
4) Recognized as enforceable law

A promise or set of promises for the breach of which gives a remedy, or the performance of which the law recognizes

Question 10

Process of Contract Formation

Answer 10

A contract is formed by an exchange of communications in which a transaction proposal by one party is accepted by another.
- OFFER: a proposal
- OFFEROR: makes the proposal; has the power to revoke it. (Must have power to accept)
- OFFEREE: whom the party made the offer to and must have sign of accent
• If an offered declines the offer and proposes a transaction on different terms then it’s a COUNTER OFFER