30 10 14 Chapter 9 contract formation Section 1 an overview of contract law Contract law provide stability predictability certainty for buyers sellers in the marketplace Deal with formation and enforcement of agreements between parties The objective theory of contract A party s intention to enter into a legally binding agreement or contract is judged by outward objective facts as interpreted by a reasonable person rather than by the party s own secret subjective intentions Objective facts 1 What the party said when entering into the contract 2 How the party acted or appeared 3 The circumstances surrounding the transaction Elements of a contract Requirements of a valid contract 1 Agreement an agreement to form a contract includes an offer and an acceptance 2 Consideration something of value received or promised money benefits 3 Contract capacity both parties legally enter to contract This includes characteristics that 4 qualify the parties to a contract as competent can t be minor under guardianship mental incompetent intoxicated Legality a contract s purpose must be to accomplish a goal that is not against public policy Ex a woman paid a guy to murder her husband Got videoed by the guy Turned her to policy Her contract with the guy is not enforceable Video showed by the teacher 5 Form a contract must be in whatever form the law required some must be wiring for enforcement Defenses to the enforceability of a contract 1 Voluntary consent if a contract was formed as a result of fraud under influence mistake or duress the contract may not be enforceable 2 Form if the contract is not as the form court asked It will not be enforceable Decoration of something will not happen in the future Promise Promise VS Contract Promisor the person making the promise Promise the person to whom the promise is made Ex for promise jilted bride to ex fianc her ex broke up with her She is asking him to pay up the wedding expense prepare for the wedding The women gets the ring if the guy break up Who is fault YouTube video Contract a promise a set of promises for the breach of which the law gives a remedy the performance of which the law in some way recognized as a duty Offeror the person propose the agreement Offeree the person to whom the agreement is made Contract law the importance of people be responsible of their own transactions Section 2 types of contracts Contract formation Categories the contract Bilateral Vs unilateral a Bilateral contract parties make a promise Offers can accept promising to perform Ex you buy a car told A you ll pay it tomorrow A accepts giving the car to u after u pay b Unilateral contract offer makes a promise that the other party can accept only by doing sth Offer is phrased so that Offeree can accept the offer only by completing the contract performance Ex if you clean my house I pay u 5 No one would do that Offeree you has to complete the act clean my house to fully accept the offer If u don t I won t punish u no legal consequences Revocation of offers for unilateral contracts somehow you decided to clean my house When you almost done I called u incase u punch me on the face says I changed my mind as an Offeror I revoke my offer before the action complete under traditional law I could totally do it But sadly enough I can t this under this modern view Formal Vs informal Express Vs implied c Formal require by particular law special form or method of creation Fail to do that not enforcement d Informal simple contracts no special form is required which is enforceable Ex oral contract harder to prove i Express contract the 2 parties explicitly state in words all important terms of their agreement Ex u clean my house again you have to clean my windows and toilet in order to get the 5 If I told you that it s an express oral contract If I wrote it down it s an express written contract Implied implied in fact the words and conduct of the parties indicate that they intended on the agreement Requirements ii 1 The plaintiff finished some service property 2 The plaintiff expected to be paid for that service property And the defendant knew or should know that payment was expected 3 The defendant had a chance to reject the services property and didn t Ex I walk up to your house have paints and wear a shirt says pay for painting Requirement 2 Ask you if I could paint your fence for you You said ok requirement 3 Then you set there doing nothing but playing you phone and watching me After 3 hours I m done Requirement 1 I ask you pay me 200 dollars You have to pay me even we didn t talk about the price I could ask you 2000 but it won t be enforceable by the law Too ridicules Mix express implied you singed up an employment contract said u could leave or I could Fire you anytime express But the employee guide I gave to you shows the ways of fair you Implied e Executory executed perform degrees i Executory when one or pre parties has not fulfilled is obligations ii Executed when all parties has fulfilled their obligations Ex You buy a car ask me to drive to your house tomorrow morning I did but you are on the toilet can t pay me now Executory After you made the payments and got the car Executed f Valid Valid is one that satisfies all of the laws requirements An agreement Support legally Legal capacity Legal purpose Types Enforceable un enforceable avoidable avoid Enforceable Un enforceable Voidable Void A valid contract that can be enforced because there are no legal defenses against it There are some legal reasons that make the contract not enforceable One party has the ability could get out the contract by legal reason Ratification to save the contract No contract contract without legal obligations nothing can save the contract Parties need to force Section 3 agreement Determine an agreement 1 2 parties 2 Offers promise commitment to do sth in the future P 191 Requirements of the offer a The offer must have a serious intention to become bound by the offer b The offers has to be reasonable certain definiteness c Must communicate the offer to particular Offeree 3 Acceptance enforceable 4 Communicate back to the Offeror offer one can t offer to all Ex sell the beach house The deal is to keep the house for 100 years We can t jump into Particular Offeree Agreement is evidenced by 2 events offers acceptance Not an intention offer Express an opinion Statements of future intension plan to do 1 Preliminary negotiation request or invitation to negotiate is not an offer 2 Terms of Advertisement Ex
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