Law for Business Mr. Bernstein How Are Contracts Satisfied? pp November 17, 2014

Law for Business Mr. Bernstein Contracts - Review A Private, Voluntary Agreement to Exchange Valuable Things or Promises An Agreement in a Form Courts Will Enforce The Basis for All Economic Activity 2

Law for Business Mr. Bernstein Requirements of an Enforceable Contract 1)Offer and Acceptance – Serious, definite offer, accepted in full 2)Genuine Assent – Cannot be based on duress or undue pressure (Mollie), an important mistake or deception (Diana) 3)Legality – Items or services exchanged must be legal (John, Danielle) 3

Law for Business Mr. Bernstein Requirements of an Enforceable Contract, cont. 4)Consideration – Both parties must receive something of value (Alexis) 5)Capacity – Both parties must be legally able to contract (Simone) 6)Writing – Some agreements must be in writing (Kiana) …contracts can be subject to interpretation (Jim) …under some conditions contract obligations can be transferred (Mr. B) 4

Law for Business Mr. Bernstein Next Topic: How Are Contracts Satisfied? Contracts Are Usually Discharged By Performance Key Terms: Cancellation, Substantial Performance, Default or Anticipatory Breach How Else can Contracts Be Discharged? By Agreement – Recission, Novation (Substitute Party), Accord/Substitution/Satisfaction By Impossibility of Performance By Operation of Law – ie Bankruptcy If a Tender is made in good faith and rejected 5

Law for Business Mr. Bernstein Remaining Topics: Remedies when a contract is breached (Kiana & Diana) Denials for remedies when contract is breached (Simone & Alexis) Sales contract specifics (John & Danielle) Transfer of ownership specifics (Mollie & Jim) 6