Presentation on theme: "TO DO LIST! Chapter 4 Quiz Current Events"— Presentation transcript:
1 TO DO LIST!Chapter 4 QuizCurrent EventsIntroduce Term Project (Due March 14)Work on Assignments, Extra Credit, Term ProjectsTest on Chapter 3 & 4 on Wed. – Unit packet due as well.
2 BELL QUIZ ON CHAPTER 4What’s the difference between a crime and a tort? Explain both.What tort interferes with the enjoyment of life or property?Name the two types of defamation.When must the words “reasonable person” be used?Name one ultrahazardous activity.
3 ANSWERS TO BELL QUIZ CHAPTER 4 Crime harms individual as well as general welfare (offense against public at large). Tort is a private wrong committed by one person against another.NuisanceLibel and SlanderWhen instructing the jurors.Explosives, wild animals, storing highly flammable liquids in densely populated areas.
5 Chapter 5 How Contracts Arise Section 5.1 Contracts Section 5.2 Offer and Acceptance
6 Why It’s ImportantIdentifying a contract’s elements will help you manage your affairs in an intelligent and effective manner.
7 Pre-Learning Question How would you define contract?
8 The Nature of a Contract A contract is any agreement enforceable by law.Not all agreements are contracts, however.Whether or not it’s a contract, depends on the circumstances of the agreement.
9 The Three Theories of Contract Law The evolution of contract law shows how its focus has changed.
10 The Equity TheoryIn the past, courts asked whether the parties to a contract exchanged things of equal value. This approach was called the equity theory of contract law.
11 The Will TheoryThe advent of industrial capitalism forced the courts to shift their focus. They began to ask if the parties had agreed to the terms in the agreement of their own free will.
12 The Formalist TheoryThen the courts began to study the parties’ actions and words to determine if there was a “meeting of the minds.”
13 The Formalist TheoryThis led to certain fixed elements in a contract. It is called the formalist theory because it relies on the form of the agreement.
14 Elements of a Contract There are six elements of a contract. offer acceptancegenuine agreementconsiderationcapacitylegality
15 Elements of a ContractAn offer is a proposal by one party to another intended to create a legally binding agreement.An acceptance is the second party’s unqualified willingness to go along with the first party’s proposal.
16 Elements of a ContractIf a valid offer is met by a valid acceptance, a genuine agreement exists.Capacity is the legal ability to enter a contract.
17 Elements of a ContractConsideration is the exchange of things of value.Legality means that people can only enter into contracts for legal purposes. People cannot enter into contracts to commit illegal acts.
18 Characteristics of a Contract Contracts can have any of the following characteristicsvalid, void, voidable, or unenforceableexpress or impliedbilateral or unilateraloral or written
19 Valid, Void, Voidable, or Unenforceable A valid contract is legally binding.A contract that is void has no legal effect.
20 Valid, Void, Voidable, or Unenforceable When a party to a contract is able to void or cancel the contract for some legal reason, it is a voidable contract.An unenforceable contract is one the court will not uphold.
21 Express or ImpliedAn express contract is stated in words and may be either oral or written.An implied contract comes about from the actions of the parties.
22 Bilateral or Unilateral A bilateral contract contains two promises.A unilateral contract contains a promise by only one person to do something, if and when the other party performs some act.
23 How Parties Reach Agreement 5.1How Parties Reach Agreement
24 How Parties Reach Agreement 5.1How Parties Reach AgreementA REWARD OFFER is one of the most common instances of a unilateral contract.
25 Oral or WrittenAn oral contract is created by word of mouth and comes into existence when two or more people form a contract by speaking to each other.Sometimes, however, it is desirable to put contracts in writing.
28 Why It’s ImportantYou need to know when an offer has been made and when an acceptance goes into effect to make sound contracts.
29 Requirements of an Offer The person who makes an offer is the offeror.The person who receives the offer is the offeree.
30 Requirements of an Offer An offer has three basic requirements. It must be:made seriouslydefinite and certaincommunicated to the offeree
31 Serious IntentAn offer must be made with the intention of entering into a legal obligation.An offer made in the heat of anger or as a joke would not meet this requirement.
32 Serious IntentSometimes an invitation to negotiate can be confused with an offer.
33 Serious IntentAdvertisements in newspapers, magazines, and catalogs are examples of invitations to negotiate, which are invitations to make an offer.Exception to rule: “first come, first served” or limit number of items that will be sold is considered an offer.
34 Definiteness and Certainty An offer must be definite and certain to be enforceable.Offers that use vague words or terms that cannot be quantified lack definiteness and certainty (reasonable; pay “a share”)
35 Communication to the Offeree Offers may be made by any method that communicates the offer to the offeree, includingtelephonelettertelegramExample 5 – page 116fax machinecell phone- text???
36 Who or what is an offeree? Who or what is an offeror?
37 ANSWER The offeree is the person making the offer. The offeror is the person receiving the offer.
38 Requirements of an Acceptance To be legally binding, the acceptance must meet certain basic requirements.the acceptance must be unconditional (terms not changed)the acceptance must follow the rules regarding the method of acceptance
39 Unconditional Acceptance The acceptance must not change the terms of the original offer in any way.This principle is called the mirror image rule.
40 Unconditional Acceptance Any change in the terms of the offer means the offeree has not really accepted the offer.The offeree has made a counteroffer.
41 Unconditional Acceptance If a counteroffer is made, the original offeror is not obligated to go along and no contract exists.The offeror becomes an offeree and may accept or reject the counteroffer.
42 Unconditional Acceptance Contracts for the sale of goods are exceptions to the mirror image rule.These exceptions include contracts for personal property such as clothing, furniture, food, motor vehicles, and appliances.
43 Methods of AcceptanceThe time at which an acceptance takes place is important because that is when the contract comes into existence.
44 Methods of AcceptanceSpecial rules govern acceptances that take place when the parties are separated by a distance and must be communicated by letters, telegrams, or fax.
45 Methods of AcceptanceAccording to common law, an acceptance that must be sent over long distances is effective when it is sent.
46 Methods of AcceptanceAn acceptance is implied when the offeree accepts by the same or a faster means than that used by the offeror.
47 Methods of AcceptanceThe authorization of an acceptance can also be implied by any reasonable means, includingpast practices between the partiesthe usual method in the tradecustomary means in comparable transactions
48 Termination of an Offer Termination of an offer may occur in any of the following five ways.revocationrejectioncounterofferexpiration of timedeath or insanity
49 Revocation Revocation is the taking back of an offer by the offeror. The offer is withdrawn BEFORE the offer was accepted.
50 RejectionRejection, or refusal, of an offer by the offeree brings the offer to an end.
51 Counteroffer A counteroffer ends the first offer. The offeree creates a new offer, which the original offeror may accept or reject.
52 Expiration of TimeIf the offeror sets a time limit for the acceptance of the offer, it must be honored.If no time limit is stated, it must be accepted within a reasonable time.
53 Death or InsanityIf the offeror dies or becomes insane before the offer is accepted, the offer comes to an end.End of Chapter