LAW ELEMENTS OF A CONTRACT

What is a Contract? An agreement enforceable by law.

ELEMENTS OF A CONTRACT An AGREEMENT, between two or more PARTIES. an OFFER to perform with, an ACCEPTANCE of that offer. There must also be: a set TIME PERIOD, TERMS for performance, and VALUABLE CONSIDERATION exchanged for that performance.

EXAMPLE Let’s say you go to a car dealership to buy a car. You are willing to part with your hard-earned cash in exchange for receiving a car that day. The cash is your promise in exchange for a vehicle, the consideration. The dealership is willing to sell you a car in exchange for cash.

DEALERSHIP ACCEPTED YOUR OFFER TERMS/CONDITIONS TO PERFORMANCE BUYING A CAR YOU OFFER TO PAY CASH DEALERSHIP ACCEPTED YOUR OFFER MEETING OF THE MINDS REGARDING TERMS OF CONTRACT VALUABLE CONSIDERATION IS EXCHANGED DEADLINE FOR PERFORMANCE, TERMS/CONDITIONS TO PERFORMANCE

MEETING OF THE MINDS SAME UNDERSTANDING OF THE TERMS OF THE CONTRACT.

CONTRACTS COVER IT ALL…

EXCEPT…… ILLEGAL SUBJECT MATTER

CONTRACTUAL CAPACITY For a contract to be valid, the parties must have the capacity to enter a contract. Became a factor in contract law to protect some individuals from being harmed in contracts.

CONTRACTUAL CAPACITY MINORS MENTAL INCAPACITY INTOXICATED PERSONS MISTAKES DECEPTION / MISREPRESENTATION UNDUE INFLUENCE AND DURESS

CHARACTERISTICS OF A CONTRACT EXPRESS OPTION IMPLIED RIGHT OF FIRST REFUSAL QUASI VOIDABLE BILATERAL VOID UNILATERAL UNENFORCEABLE VALID

EXPRESS or IMPLIED CONTRACTS An express contact is a contract statement that may be oral or written. An implied contract is a contract that comes about from the actions of the parties.

BILATERAL OR UNILATERAL CONTRACTS A bilateral contract is a contract that contains two promises. A unilateral contract is a contract that contains a promise by only one person to do something, if and when the other party performs some act.

STATUTE OF FRAUDS Must be in writing… Cannot be performed within one year from its making. Real estate Related to marriage. Sale of goods that is over $500. Promise to pay someone's debt.

OFFER AND ACCEPTANCE Without an offer and acceptance, there is no contract.

REQUIREMENTS OF AN OFFER (1) Express a PROMISE to enter a contract. (CONTRACTUAL INTENT) (2) Create CERTAINTY about the key TERMS. (DEFINITE TERMS) (3) Clearly COMMUNICATE those items. (Communicating the Offer)

ACCEPTANCE To accept an offer, the offeree must manifest acceptance according to the terms of the offer.

TERMINATING A CONTRACT Contracts are discharged when both parties have completed their obligations. A contract is discharged by impossibility if it’s no longer possible for one or all parties to perform obligations.

BREACH OF CONTRACT The failure to perform or act in the manner called for by the terms of the contract.

BREACH OF CONTRACT If a contract is breached, money damages are the usual remedy. Other remedies: Rescission Injunction Court reformation

BREACH OF CONTRACT A contract should be drafted to make clear what will happen in the events of a breach.

ACTIVITY IN PAIRS, YOU WILL DRAFT A CONTRACT: BOTH PARTIES AGREE TO DO SOMETHING. BE CREATIVE, BUT MUST BE APPROPRIATE!