Lesson 6 and 7 Flashcards
What must be in a contract?
agreement between two parties that create an obligation
jests
a reasonable person decides if an offerer or offeree is joking
statements made in anger or terror
not valid
preliminary negotiations
information communicated merely to induce someone to initiate a bargainer
social agreements
not contracts ex: going to a movie with friends
offer must be communicated to the offeree
true
essential items must be completed and defined
true
complete
identify the price, subject matter, quantity directly or indirectly
offeror
person who makes offer
offeree
person to whom the offer is made
consideration
promisor demands and generally must relieve in order to make their promise legally enforceable
express contract
all terms are expressly stated orally or in writing
implied in fact contract
terms not expressly stated but can be inferred from the parties’ acts or conduct
ex: eating out you will pay
unilateral contract
offeror promises something in return for the offeree’s performance and indicates that his performance is the way acceptance is to be made
bilateral contract
formed by a mutual exchange of legally binding promises
Ex: buying a car
offer
Prospal by an offeror to do something
three items required for an offer
- contractual intent must be present in the offer
- the offer must be communicated with the offeree
- essential terms of the offer must be completed