Contract Formation Notes Essay

Submitted By torid1
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Week #3 6,7 and 10

Contract Formation:

Bilateral contract—promise for promise
Unilateral—promise for performance
Executory—contract executed once its perfomed
Executed---not executed until its completely done
Valid-allpresent
VOID-one or more missing
Voidable-

Doctrine of necessaries—doctrine of infancy (over 18 yrs) if u enter contract under the age of 18-contracts for necessaries are

Constructive Notice-demonstrate that a party has received a notice

Express/Implied in Fact Contract—no words expressed.--.implied contract
Quasi contract ---equitable, not a true contract

Requirements:

Agreement--An agreement results from the offeror making a valid offer (had objective intent to contract)and the offeree accepting the terms of the offer and agreeing to be bound by its terms. Consideration--For a binding contract to exist there must be not only agreement
(i.e., offer and acceptance) but the agreement must be supported by consideration.
Capacity--In addition to meeting the requirements for agreement and consideration, courts will only enforce contracts where each party had the legal capacity to enter into a contract

Lawful Object—

If the response conflicts with the original offer even slightly, the original offer is terminated and the new offer is substituted. This principle is called the mirror image rule

Auctions:

With Reserve—Such a sale is with reserve unless the goods are in explicit terms put up without reserve. In an auction with reserve the auctioneer may withdraw the goods at any time until he announces completion of the sale.
Without Reserve----

TERMINATION OF OFFER:
--Revocation: An action terminating an offer whereby the offeror decides to withdraw the offer by expressly communicating the revocation to the offeree prior to acceptance.

--Rejection An action terminating an offer whereby the offeree rejects the offer outright prior to acceptance.

Counteroffer--Counteroffer An action terminating an offer whereby the offeree rejects the original offer and proposes a new offer with different terms.

Operation of Law--Operation of law (Contracts) Another way in which an offer may be terminated by certain happenings or events. Generally, these include lapse of time, death or incapacity of the offeror or offeree, and destruction of the subject matter of the contract prior to acceptance.

Acceptance:

Unequivocal—

CONSIDERATION:

Benefit of detriment
--could be forebearance

--Bargained for exchange
--But See: -gratuitous promise -illusory promise -preexisting jury -past consideration

Exulpatory Clause: -not forwillfull conduct -intentional torts -fraud recklessness -gross negligence -lawyers

Statue of Frauds:

-interest in real property
-except part performance
-leases over one year
-contracts necessarily over one year
-guaranty contract
-signed by party to be charged
-make your mark anywhere on face

Parol Evidence Rule---contract from the outside of the contract
Merger/Integration Clause—

Third parties: -assignment -intended beneficiary can enforce
Discharge:
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