I. Elements of a contract – all required in order an agreement to be legally enforceable
1. offer and acceptance
2. genuine agreement
Contract- an agreement between two parties or more than is enforceable by law
offer- a proposal by a party to another party to “enter” into a contract.
offerer- makes the offer
offeree- receive the offer
Requirements of an offer:
1. serious intent
2. definite and certain- specific
3. communicated to the offeree
acceptance: the willingness to go along with an offer according to all the terms.
unconditional acceptance: accepted without conditions upon it. also called an “mirror image rule”
II. characteristics of contracts
1. valid, void, voidable, uneforceable
3. bilateral or unlateral
4. requirements of an offer
5. oral or written
Offer- a proposal made by one party (the offeror) to another party (the offeree) indicating a willingness to enter a contract
Acceptance- the agreement of the oferee to be bound by the terms of the offer
Genuine-agreement offere and acceptance go together to create genuine agreement, or a meeting of minds. agreeement can be destroyed by fraud, misrepresentation, mistake, duress, or undue influence
Consideration- is the thing of value promised to the other party in a contract in exchange for something else of value promised by the other party. this mutaul exchange binds the parties together.
Capacity- the law presumes that anyone entering a contract has the legal capicity to do so. Minors are generally excused from contractual responsibility, as are mentally incompetent and drugged or drunk individuals.
Legality- parties are not allowed
Terminating an offer
1.Revocation:to take back the offer before it is accepted
2.Rejection:offeree declines the offer
3.Counter-offer: to make amend original offer by the offeree
4.Expiration of time: when time for offer is stated, offer is terminated
5.Death/ insanity: the ability to contract