Week 2 Introduction of Law of contract Flashcards
What is a contract?
A contract is an agreement between two parties and can be written, oral or through signing on paper is automatically can be legally binding with the courts.
What do contracts do?
the contract can be function and promoting certainty and is useful to facilitate planning and systematical advantage as well. Also it can create and establish the market value for goods and service.
Promote certainty
Facilitate planning
Establish market value for goods and services.
The elements of a legally binding contrac
The elements are form of consideration, legal capacity, object and agreement.last is genuine consent. these are the five elements for a contract.
What is an offer?
An offer can be provided through the seller or the buyer, once the offer is given to another party, it can be accepted through agreement of another party which leads to a legal contract. an therefore it’s a starting point of establishing a contract as well after agreement with the another party.
Mere puffs: not offers
A mere puffs are not offer because because it has exaggerated contents about the products which is irrelevant and not important.
Other offer rules
Offer can be permanently ended through several factors such as due to expiry date and revocation which occurs before the contract and cannot be accepted. Also the fact that counter contract occurs can also change the rules of the contract.
Options (and option contracts)
The options contract cannot change or revoke because of the promise to set the contract open for another party. it is possible to holding the promise with something to secure the offer like when for example paying money for holding the offer free for you.
Counter-offers
The old offer can be replaced due to a new offer in change of terms like the price, quality or quantity which also means the old offer is no longer available to accept and the new offer have to accepted
Acceptance to an offer
the acceptance is been reached when the buyer say yes which leads to first requirement to establish the acceptance. it can be also create through written form, conduct or performance.
Acceptance: battle of the forms
when companies have their own contracts with different terms and standards then it will follow the contract rules or offer rules to determine which contract should be accepted.
Certainty
All parties should accept the essential terms and requirements to enforce the contract. which means that even with agreement of an offer it should be make the agreement certain.
Contracts as the building blocks of commerce
Contract law might be old but it secure the enforceability of the promise. for example: the contract can give us requirements how much the business should be paid. it use to manage the electronic relationship with the interconnected world.
