1. LAW
ELEMENTS OF A
CONTRACT

2. What is a Contract?
An agreement enforceable by law.

3. 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.

4. 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.

5. 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

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

7. CONTRACTS COVER IT ALL…

8. EXCEPT……
ILLEGAL SUBJECT MATTER

9. 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.

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

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

12. 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.

13. 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.

14. 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.

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

16. 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)

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

18. 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.

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

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

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

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