Lesson 5 Flashcards
Important lesson from contracts
just because you sign a contract does nutmeat the court will enforce it, they might say null, void or non-enforceable
What is a contract?
Agreement of wills 1378
-binding agreement between two+ parties to perform an undertaking
Good faith
1375: parties are required to perform their contractual obligations in good faith
Onerous
both parties have an obligation: one pays money and the other delivers
Gratuitous
only one party has an obligation (a gift), nothing is asked in return. If you do then becomes onerous
Instantaneous
the obligation of both parties can be carried out immediately
example of instantaneous
contract of sale: pay and get it right away
Successive performance
the obligations of both parties are carried out over time, even if you wanted to do it right away you could not
example of successive
lease: even if you pay 12 months rent up front you still have ongoing obligation to take care of the apartment until the end of the lease
Which contracts are enforceable?
oral and written but oral more difficult to prove
oral evidence is
not always sufficient
certain contracts must be in writing or
not enforceable: might even have to follow a certain format
contracts that have to follow a certain format
residential lease, real estate transaction, mortgages of public order
to have a valid contract parties must agree on
essential elements
essential elements of contract of sale
item, price
essential elements of contract of lease
item, term, price
offeror must state all the essential elements
offeree can accept or refuse offer
Determinate offer
directed to a specific person (gogo I wanna buy your pen at 5$)
indeterminate offer
an offer to the public at large (I need a pen from anyone and can buy for 5$)
Exception to offer
Kijiji ad: invitation to treat, not considered an offer but a notice that the cat owner is interested in receiving offers
professional sellers under CPA MUST
indicate while supplies last and also must have reasonable quantity of merchandise when they advertise a sale
Term CCQ1390
time period during which the offer is available for acceptance and cannot withdraw (could have or not)
if no term you can withdraw
anytime
Lapses CCQ 1392
when the term expires the offer lapses
if no term specified when does it lapse
after reasonable amount of time which depends on situation
if you refuse offer then
deemed to lapse
acceptance 2 types
express or tacit
express acceptance
clear verbal response of YEs or signing a contract
tacit acceptance
demonstration of your acceptance through actions
i.e. holding hand out to receive payment..
where does acceptance occur
contract is formed when and where the offeror receives the notice of acceptance
