PowerPoint 4 Flashcards
Contracts
A legally enforceable agreement.
Do contracts have to be written?
No.
Is a simple promise legally enforceable?
No.
Elements of a contract:
- Intention to create legal relations.
- Meeting of the mind (offer and acceptance).
- Exchange of value (consideration).
Consensus Ad Idem
Meeting of the minds.
Intention to Create Legal Relations
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.
The intention to create legal relations is assumed to exist when you deal with ___, but presumed to not exist when you deal with ___.
Strangers, family.
Meeting of the Minds
- Parties must mutually agree to terms.
- One party proposes terms through an offer.
- Other party agree to terms through an acceptance.
___ ___ ___ ___ must be applied to prove parties intended to create legal relations.
Objective test of intention.
Objective Test of Intention
What would a reasonable person believe? The test must be applied at a time of purported contract, and not in hindsight.
When is the contract complete in a typical sale?
When the money changes hands.
Invitation to Treat
Implied terms in an advertisement. Advertisements and catalogues presumed to be invitations.
Offers vs. Invitation to Treat
An offer is a contract where you cannot change your mind, while an invitation is not yet a contract.
Offer may be terminated before ___.
Acceptance.
Offer ends upon:
- Revocation.
- Lapse of time (stated or reasonable).
- Death.
- Rejection.
- Counter offer.
The reasonable person test being used for the lapse of time ___, as different contexts require different time frames.
Varies/differs.
With the counter-offer there comes an implied ___.
Rejection.
Are you legally obligated to hold an item for someone while you wait for them to decide?
No.
Are conditional offers binding?
Yes.
Revocation
Withdraw by offeror.
When can the offeror revoke?
Anytime.
What must be completed in revocation?
The revocation must be communicated to offer.
Firm Offers
Gratuitous promise to not revoke: unenforceable.
Call For Tender
City calls for tenders (offers), builders submit tenders. City selects winning under.
Facts in call for tender usually supports two sets of contracts – what are they?
Contract A: contract to select winning tender.
Contract B: contract to build library.
Forms of acceptance:
- Acceptance by promise.
- Acceptance by performance.
When is acceptance binding?
When acceptance is communicated.
Acceptance by Promise
Words that are written or spoken. Can also be conduct (handshake).
Acceptance by Performance
Act of exchanging money itself.
Can silence be considered to be acceptance?
No.
Can silence plus prior agreement may be acceptance?
Yes.
Acceptance at a distance depends on what distinction?
Instantaneous communications vs. non-instantaneous communications.
What is the rule for instantaneous acceptance at a distance?
- Communication effective when received.
- Communication effective where received.
- Communication effective only if received.
Instantaneous
No (substantial) delay.
Acquiescence
You did not really agree to it, but you went along with it.
Is acquiescence considered acceptance?
Yes.
What is the exception to the rule of when, where, and only if received?
Postal rule.
Is the postal rule instantaneous?
No, it is non-instantaneous (substantial delay).
When does the postal rule apply?
Postal letters, courier packages.
Postal Rule
- Communication effective when sent.
- Communication effective where sent.
- Communication effective even if not received.
What are limitations on postal rules?
It applies only to acceptance. Does not apply to rejection.
Acceptance by Performance
Obligations exist on one side when contract created. “I’ll pay $100 to anyone who finds my cat.”
