2 What is a contract?A contract is an agreement between 2 or more parties that creates a legal obligation
3 6 Requirements to Contracts Offer and AcceptanceMust be a genuine offer and the offer must be accepted without changing the offerPerson giving the offer is the offeror; person receiving the offer is the offeree.Genuine AssentThe offer cannot be based on someone tricking someone else or putting unfair pressure on them to accept the offerLegalityWhat the 2 people agree to must be legalConsiderationBoth people in the contract must receive something of valueCapacityMust be 18 to have the capacity to contractWritingSome, but not all, agreements must be in writing to be enforced
4 What is an offer?An offer is a proposal by an offeror to something, provided the offeree does something in return.
5 Requirements of an Offer Contractual intent must be present in the offer.The offer must be communicated to the offeree.The essential terms of the offer must be complete and definite.
6 Requirements of an Offer: #1 Contractual Intent Must be Present If you are joking but someone thinks you are making an offer, then the law will hold you to the offer.If you make a statement out of anger or terror, then there is no legal offer.Ads in the newspaper are often invitations to negotiate, not offers.Social agreements, or arrangements between friends to do something, are not offers.
7 Requirements of an Offer: #2 Offer Must be Communicated to 3rd Offeree A person who is not the intended offeree CANNOT accept the offer. In other words, if it wasn’t meant for you, you can’t accept it.An public offer for a reward cannot be accepted by someone who did not know about the reward.
8 Requirements of an Offer: #3 Essential Terms Must be Complete and Definite Identity of the itemPriceFull terms of paymentDate for delivery of possessionDate for delivery of the deedDefinite:Everything must be specific and clearCannot say “My car”, must say “My 2007 Jeep Cherokee”
9 Review What are the 6 requirements to contracts? What are the 3 requirements of an offer?What is the difference between the offeror and the offeree?