1 / 20

Bell Ringer

Bell Ringer. What should a contract be based on? What things should be included in a contract? What things could make a contract no longer applicable? . CH 5: Entering into Contracts . What is a contract?.

adonis
Télécharger la présentation

Bell Ringer

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Bell Ringer • What should a contract be based on? • What things should be included in a contract? • What things could make a contract no longer applicable?

  2. CH 5: Entering into Contracts

  3. What is a contract? • Most people think of contracts as preprinted, formal legal documents that relate to only important things (buying cars, new job, etc) • You enter into a contract any time your agree to exchange things of value • A contract is an agreement enforceable by law.

  4. Three Theories of Contracts: Equality Theory • Equality theory: Whether the parties exchanged things of equal value • Was used primarily in the past • Was phased out as industrialization and capitalism became more prominent

  5. Three Theories of Contracts: Will Theory • Will Theory: Whether the parties had agreed to terms set forth in a contract • Called the will theory because each part has free will • Courts no longer looked at if the contract was fair, but if each party agree to the terms of their own volition • The Will Theory is hard to prove as it is almost impossible to prove what a person is thinking at any given moment

  6. Three Theories of Contracts:Formalist Agreement • Since Will Theory proved inadequate courts started to look for specific actions/parts to a contract • The court tried to determine if it seemed like the two parties had collaborate on the contract • This would led to specific fixed elements that appear in all contracts • If these elements were present, courts acknowledge the existence of a contract.

  7. Elements of a Contract • As stated in formalist theory courts are looking for fixed specific parts of an agreement. • If these parts are present in an agreement the courts acknowledge something was a contract • Without all six elements an agreement is not a contract • There are SIX elements of a contract courts look for: offer, acceptance, genuine agreement, consideration, capacity, legality

  8. Offer: A proposal by one party (offeror) to another (offeree) intended to create legally binding agreement • Acceptance: The Agreement of the offeree to be bound by the terms of the offer

  9. Genuine Agreement: The offer and acceptance combine together to form a genuine agreement. • A Genuine Agreement can be destroyed by fraud, misrepresentation, mistake, duress, or undue influence

  10. Consideration: The thing of value promised to one party in contract in exchange for something else of value promised by the other party. • The mutual exchange binds the parties together

  11. Capacity: The law presumes anyone entering into a contract can legally do so • Contracts can be invalidated if a party involved is too young, mentally incompetent, drugged, drunk, etc • Legality: Parties are not allowed to enforce contracts that involve illegal activities.

  12. Characteristics of a Contract • Once a contract has been entered it can be described in numerous ways, and take on numerous forms • Valid, void, voidable, or unenforceable • Express or implied • Bilateral or unilateral • Oral or written

  13. Valid, Void, Voidable, or Unenforceable • Valid: legally good (legally binding) • Void: no longer legal • If a contract is missing one element, it can be void

  14. Voidable Contract: when a party to a contract is able to void or cancel the contract for some legal reason • Unenforceable Contract: a contract that the court will not uphold, generally because of some rule of law, such as the statue of limitations

  15. Express vs Implied Contract • Express Contract: stated in words and may be either oral or written • Implied Contract: come from the actions of the parties • Pumping gas: By pumping your own gas you enter an implied contract you will PAY FOR THE GAS!!!

  16. Bilateral vs Unilateral • Bilateral Contract: Contains two contracts. One party promises to do something in exchange from another’s promise to do something else • Unilateral Contract: contains a promise by only one person to do something, if and when the other party performs some action.

  17. Oral vs Written • Oral Contract: when a contract is formed by word of mouth and comes about by two people speaking to each other • Written Contract: a written contract assures that both parties know the exact terms of the contract and providing proof of the agreement

  18. Requirements of an Offer • An offer had three basic requirements • Made Seriously • Definite and certain • Communicated to the offeree • Serious Intent: an offer must be made with the intent of entering into a legal obligation • Therefore, saying “If you hit this shot I will give you $10,000” is NOT actually legally binding.

More Related