B_LAW 210 – 1st Edition Lecture 9 Outline of Last Lecture 1. Properties in Lawa. Real Propertyb. Personal Propertyc. Commercial PropertyOutline of Current Lecture I. Contractsa. Types of ContractsII. Offersa. Elements of an OfferIII. AcceptanceCurrent LectureContracts: A legally binding agreement between 2 or more parties.- What defines a Contract?1. Agreement (Offer + Acceptance + Consideration)2. Capacity 3. Consent4. 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 Offer1. Intent to be bound2. 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 offer4. 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 paid2. Unilateral Contract – with substantial performance3. Promissory Estoppel – where Offeree relies to his or her detriment4. Firm offer for the sale of goods - UCCo Rejection: I would never pay $10,000 for that caro 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/expiration2. Destruction of Subject Matter3. Death or disability of either party4. Subsequent illegalityAcceptance: Voluntary action by Offeree that shows agreement to the offer.- Elements of Acceptanceo Unequivocalo Unconditionalo Properly communicatedo ~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 promiseo 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