Today Finish terminology from chapter 11 Apply chapter 12 Bilateral vs Unilateral Contracts Bilateral promise for a promise Unilateral promise for an act Contests Texas A M vs South Carolina Furniture purchased between 8 16 8 27 Free if A M wins by at least 10 points Over 1 million of furniture was purchased Express vs Implied Contracts Express words of the contract Implied conduct not words Example late payments on rent Contract states 25 fee if rent is paid late Four Elements of a Contract Agreement Consideration Capacity Legality Agreement meeting of the minds reasonable person standard Would a reasonable person think there was an agreement a meeting of the minds Components of Agreement Agreement Offer Acceptance Valid offer Intent Definiteness Communication Scenario 1 I ll buy your house for a fair price You ve got a deal Enforceable contract No Lacks definiteness Would a reasonable person conclude there was a meeting of the minds Definiteness Definiteness depends on facts of each case Key items to look for Subject matter Quantity Price Timing Scenario 2 Ceramic grinders transfer or quit six months severance We ll give you all the work you can handle We d like to give you all our grinding work Currently 10 000 per month in grinding work Valid contract Court promises were too vague so no contract Fairness vs Law ethics vs legality Scenario 2 cont Court opinion ceramic grinders case A person of principle and character would keep his word but if his word is sufficiently imprecise the law will not force him to do so Scenario 3 Sopranos TV show aspiring writer pitches established producer Writer rejects hourly rate Producer Okay I ll take care of you if the show succeeds Contract No Also too vague But what about unjust enrichment Unjust Enrichment No contract but unfair result Flexibility of common law equitable remedy One party benefits at the expense of another Unjust enrichment is only applicable if there is no contract Scenario 4 Bob and Jane having breakfast Need to pay for landscaping work Enforceable contract Unjust enrichment Unjust enrichment 1 2 3 4 No contract but benefit given with opportunity to reject and expectation of payment Sopranos case Before Acceptance Occurs Revocation of the offer Express revocation valid when received Expiration date Termination of the offer By the parties By operation of law Scenario 5 House for sale for 55 000 in Missouri Offer at 40 000 rejected Offer at 55 000 accepted with crossed out closing date Closing date on May 15 or June 1 Buyer disappears Valid contract Court new closing date is a counteroffer which terminates previous offer and creates a new offer which may or may not be accepted Acceptance Mirror image rule Valid acceptance cannot add or subtract terms Counteroffers Ping pong ball analogy Schedule Thursday Finish chapter 12 agreement Begin chapter 13 consideration