B LAW 210 1st Edition Lecture 9 Outline of Last Lecture 1 Properties in Law a Real Property b Personal Property c Commercial Property Outline of Current Lecture I Contracts a Types of Contracts II Offers a Elements of an Offer III Acceptance Current Lecture Contracts A legally binding agreement between 2 or more parties What defines a Contract 1 Agreement Offer Acceptance Consideration 2 Capacity 3 Consent 4 Legality lawful subject matter Types of Contracts o Bilateral 2 promises EX I promised to deliver the goods is you promise to pay me o Unilateral 1 promise can only be accepted by actual performance EX You put a reward out for information leading to the arrest of someone and I bring you that information o Express Terms are understood by written or oral words o Implied Contract is implied by actions o Valid Enforceable Lawful o Voidable One party may cancel the contract EX A minor buys a car 18 is the age of consent so minor can cancel the contract o Void No legal effect unable to sue for recourse EX Legally insane or illegal subject matter These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Offer Promise conditioned upon an act promise or forbearance promise to NOT do something Elements of an Offer 1 Intent to be bound 2 Definiteness terms must be reasonably certain 3 Communicated Not an Offer 1 Expression of Opinion Doctor says Hand will heal in 4 5 days 2 Statement of Future Intent I plan to sell my stock at 150 a share 3 Advertisement Invitation to make an offer 4 Auction Invitation to make an offer Termination of an Offer o Revocation An offer can be revoked by the Offeror any time prior to acceptance by the Offeree in most cases except 1 Option Contract when consideration has been paid 2 Unilateral Contract with substantial performance 3 Promissory Estoppel where Offeree relies to his or her detriment 4 Firm offer for the sale of goods UCC o Rejection I would never pay 10 000 for that car o Counter offer A counter offer by the Offeree revokes the original offer Ex If a house is advertised at 300 000 and you make a counter offer at 290 000 you have effectively revoked the offer and cannot buy the house unless you make a new offer which is accepted o An automatic revocation occurs 1 Lapse in time expiration 2 Destruction of Subject Matter 3 Death or disability of either party 4 Subsequent illegality Acceptance Voluntary action by Offeree that shows agreement to the offer Elements of Acceptance o Unequivocal o Unconditional o Properly communicated o Only an intended Offeree may accept an Offer The Acceptance must be in the form indicated o Remember Acceptance can be in the form of an act or promise o Offeror can require Acceptance in writing or other conditions o Silence Acceptance ONLY when the Offeree takes the benefit of the offer and had a reasonable time to reject or prior business relationship EX An employee alters a severance provision in an employment contract signs it and returns it to the employer The Employer never signed the counter offer and fires the employee one year later Because the Employer did not reject the counter offer and took the benefit of the employee s work for one year there was deemed to be acceptance even though the employee s changes to the contract were never signed by the employer Old Rule Acceptance must be of the exact offer made New rule All material terms must be the same Mailbox Rule An offer is accepted upon dispatch when dropped in the mailbox this is true even if the contract is lost in the mail and never received Today any reasonable means of communication is allowed for acceptance of a contact