PowerPoint 4

Question 1

Contracts

Answer 1

A legally enforceable agreement.

Question 2

Do contracts have to be written?

Answer 2

No.

Question 3

Is a simple promise legally enforceable?

Answer 3

No.

Question 4

Elements of a contract:

Answer 4

• Intention to create legal relations.
• Meeting of the mind (offer and acceptance).
• Exchange of value (consideration).

Question 5

Consensus Ad Idem

Answer 5

Meeting of the minds.

Question 6

Intention to Create Legal Relations

Answer 6

Pledging to support a campaign is not an intention to create a legal relation, but a case where someone is selling something and someone agreeing to buy it is a type of a legally binding agreement.

Question 7

The intention to create legal relations is assumed to exist when you deal with ___, but presumed to not exist when you deal with ___.

Answer 7

Strangers, family.

Question 8

Meeting of the Minds

Answer 8

• Parties must mutually agree to terms.
• One party proposes terms through an offer.
• Other party agree to terms through an acceptance.

Question 9

___ ___ ___ ___ must be applied to prove parties intended to create legal relations.

Answer 9

Objective test of intention.

Question 10

Objective Test of Intention

Answer 10

What would a reasonable person believe? The test must be applied at a time of purported contract, and not in hindsight.

Question 11

When is the contract complete in a typical sale?

Answer 11

When the money changes hands.

Question 12

Invitation to Treat

Answer 12

Implied terms in an advertisement. Advertisements and catalogues presumed to be invitations.

Question 13

Offers vs. Invitation to Treat

Answer 13

An offer is a contract where you cannot change your mind, while an invitation is not yet a contract.

Question 14

Offer may be terminated before ___.

Answer 14

Acceptance.

Question 15

Offer ends upon:

Answer 15

• Revocation.
• Lapse of time (stated or reasonable).
• Death.
• Rejection.
• Counter offer.

Question 16

The reasonable person test being used for the lapse of time ___, as different contexts require different time frames.

Answer 16

Varies/differs.

Question 17

With the counter-offer there comes an implied ___.

Answer 17

Rejection.

Question 18

Are you legally obligated to hold an item for someone while you wait for them to decide?

Answer 18

No.

Question 19

Are conditional offers binding?

Answer 19

Yes.

Question 20

Revocation

Answer 20

Withdraw by offeror.

Question 21

When can the offeror revoke?

Answer 21

Anytime.

Question 22

What must be completed in revocation?

Answer 22

The revocation must be communicated to offer.

Question 23

Firm Offers

Answer 23

Gratuitous promise to not revoke: unenforceable.

Question 24

Call For Tender

Answer 24

City calls for tenders (offers), builders submit tenders. City selects winning under.

Question 25

Facts in call for tender usually supports two sets of contracts -- what are they?

Answer 25

Contract A: contract to select winning tender. | Contract B: contract to build library.

Question 26

Forms of acceptance:

Answer 26

- Acceptance by promise. | - Acceptance by performance.

Question 27

When is acceptance binding?

Answer 27

When acceptance is communicated.

Question 28

Acceptance by Promise

Answer 28

Words that are written or spoken. Can also be conduct (handshake).

Question 29

Acceptance by Performance

Answer 29

Act of exchanging money itself.

Question 30

Can silence be considered to be acceptance?

Answer 30

No.

Question 31

Can silence plus prior agreement may be acceptance?

Answer 31

Yes.

Question 32

Acceptance at a distance depends on what distinction?

Answer 32

Instantaneous communications vs. non-instantaneous communications.

Question 33

What is the rule for instantaneous acceptance at a distance?

Answer 33

- Communication effective when received. - Communication effective where received. - Communication effective only if received.

Question 34

Instantaneous

Answer 34

No (substantial) delay.

Question 35

Acquiescence

Answer 35

You did not really agree to it, but you went along with it.

Question 36

Is acquiescence considered acceptance?

Answer 36

Yes.

Question 37

What is the exception to the rule of when, where, and only if received?

Answer 37

Postal rule.

Question 38

Is the postal rule instantaneous?

Answer 38

No, it is non-instantaneous (substantial delay).

Question 39

When does the postal rule apply?

Answer 39

Postal letters, courier packages.

Question 40

Postal Rule

Answer 40

- Communication effective when sent. - Communication effective where sent. - Communication effective even if not received.

Question 41

What are limitations on postal rules?

Answer 41

It applies only to acceptance. Does not apply to rejection.

Question 42

Acceptance by Performance

Answer 42

Obligations exist on one side when contract created. "I'll pay $100 to anyone who finds my cat."