1. Gary Nelson Covering chapter 7 in the text.
How Contracts Arise
Gary Nelson
Covering chapter 7 in the text.

2. Elements of a Contract Offer Acceptance Genuine agreement
Consideration
Capacity
Legality

3. Characteristics of a Contract
Valid, void, voidable or unenforceable
Express or implied
Implied contracts can be
implied in fact
implied in law
Bilateral or unilateral
Oral or written

4. Requirement of an Offer
Two parties
Offeror - person making the offer
Offeree - person to whom the offer is made
Serious intent
Definiteness and certainty
Communication to the offeree

5. Requirement of an Acceptance
Unconditional acceptance
If the offeree’s acceptance does not mirror the offer, it is a counteroffer.

6. Requirement of an Acceptance (cont’d.)
Methods of acceptance
When offeree uses the same method of communication as the offeree, acceptance is effective when it is sent (“upon dispatch”).
If the offeree uses a different method of communication, acceptance is effective when it is received (“upon receipt”).

7. Termination of an Offer
Revocation
Rejection
Counteroffer
Expiration of time
Death or Insanity