CONTRACTS Chapter 5 - Section 5.1

ELEMENTS OF A CONTRACT Offer Acceptance Genuine Agreement Consideration Capacity Legality

HOW PARTIES REACH AGREEMENT Unilateral Contract Agreement ◦ Offer – Promise by offeror ◦ Acceptance – Act performed by offeree at offeror’s request Bilateral Contract Agreement ◦ Offer – Promise by offeror ◦ Acceptance – Promise made by offeree at offeror’s request

EXAMPLES OF CONTRACTS Unilateral - I will pay you $50 if you detail my car. If you detail my car the contract is complete. Bilateral - If someone offered to drive you to work on Mondays and Tuesdays in exchange for your promise to return the favor on Wednesdays and Thursdays, a bilateral contract would be formed binding both of you once you provide consideration by accepting those terms. 1. Provide two examples of a unilateral and a bilateral contract.

Current Events Use the internet to locate three current events that involve a contract. 2. How did each contract come into existence? 3. What are the issues surrounding the contracts? (What is the contract about?) 4. What happened or what do you think will happen in each situation.

CONTRACTS ***You may have to copy and paste these links into YouTube*** (Contracts) 5. Is this a contract? (Drinks Machine Contract) (What Makes A Valid Contract) 6. When is a contract legally binding? (Judge Judy - Forged Contract) 7. Do you agree with Judge Judy’s decision?

MAKING IT RELEVANT Identifying a contract’s elements will help you manage your affairs in an intelligent and effective manner.