Presentation on theme: "Contracts. Essential Element #1: Offer andAcceptance offeror offeree Gotta have both."— Presentation transcript:
Essential Element #1: Offer andAcceptance offeror offeree Gotta have both
Essential Element #2: Consideration Both sides have to give something up (doesn’t have to be money)
A promise without consideration is unenforceable. I will always love you I’ll pick you up at 6:00 I’ll always be there for you
Essential Element #3: Competent Parties Matt Bowers, 2028 Max Carter, 2015
Essential Element #4: Legal Purpose
Must have all four: Offer and Acceptance Mutual Consideration Competent Parties Legal Purpose or there is no contract!
voidA void contract is dead voidableA voidable contract can be killed Contract
Express Express contract All the terms are stated orally or in writing Greetings merchant! I would like to buy this pack of cigarettes for $9.50!!! I accept your offer!!!
Implied Implied Contract A contract arises from the reasonable interpretation of the actions of the parties Next time you buy groceries, don’t say a single word. A
Quasi Contract - Finding a contract where one of the elements is missing (in the interests of fairness)
A valid contract is good (enforceable)
The Offeror makes an offer……….
The Offeree is the person to whom the offer is made. (can accept, reject or ignore the offer)
An OFFER must be: serious definite communicated to the appear sincere to a reasonable person specific as to t tt the important details of the contract I’ll give you $5.00 for Brie. offeree Githler
Advertisements and auctions are invitations to make an offer Any bids?
How an offer ends: (when can it no longer be accepted?) Lapse of Time Either in the contract or after a ‘reasonable time’ Rejection by the Offeree Counteroffer by the Offeree
Githler Carter I will give you five dollars for that cat. Make it seven dollars and you have a deal. OFFER COUNTER-OFFER OFFER
How an offer ends: (when can it no longer be accepted?) Revocation by the Offeror Death/Insanity of the Offeror before acceptance
Githler Carter $5 for the cat. Give me a minute… Oops! Too late!
Githler Hunter $5 for the cat. How an offer ends: Impossibility It becomes impossible to perform the contract (before acceptance) Alive. Cat dies. Illegality The subject of the contract becomes illegal (before acceptance) Not so fast, Githler.Selling cats is now illegal.
Githler v. Hunter
False Imprisonment Interference with freedom of movement “I have a 20 on Crawford”
Emerson climbs in through a window of the Covered Bridge Market at 2:00 AM, intending to steal a pack of cigarettes. Mr. Heffron, the owner, is driving by and sees Emerson ’ s flashlight inside the store. Heffron dials 911 on his cell phone and summons the police. Then Heffron goes into the store and confronts Emerson with a gun, saying to Emerson, “ I ’ m going to kill you. ” Emerson tries to climb back out of the window at this point. Heffron shoots the gun at Emerson, but misses. Emerson, terrified, falls on the floor and doesn ’ t move until the police arrive. Emerson is unable to sleep for a week as a result of the incident. Does Emerson have a false imprisonment case against Heffron?
The Acceptance GithlerCarter Mr. Carter, I’ll give you $5.00 for that tasty- looking cat. can be made only by the Offeree nobody else! Derfel Yes! I’ll sell you my cat for $5.00!
The Acceptance GithlerCarter I’ll give you $5.00 for that tasty-looking cat. must agree with the offer or it’s a counteroffer! I agree. You can have the cat for $5.00. Bon apetit! and it must be communicated to the offeror to become a contract
An acceptance by mail is delivered when it is deposited in the mail!
You can’t make silence a form of acceptance. Carter Githler If I don’t hear anything from you in the next two seconds, then you agree to sell me your cat for $5.00.