Ehsan kabir Solicitor | Consumer and Housing Law Contracts

1. Consumer and Housing Law Contracts

2.  A consumer is a person who buys goods or services from a seller  The legal expression ―caveat emptor‖ is a Latin phrase meaning ―let the buyer beware‖ which characterizes consumer law  Consumers had to look out for unfair & misleading sales practices before buying, or be prepared to suffer the consequences  Today, the law is more balanced – consumers have the right to be correctly informed of important information such as quality, price, & credit terms  Consumers also have the responsibility of being fair & honest to sellers

3.  A contract is an agreement between 2+ people to exchange something of value  A contract legally binds the parties to uphold their end of the bargain  A party breaches, or breaks, the contract by failing to live up to the promise

4. Elements of a Contract Elements of a Contract  A legally binding contract must have three elements  an offer ○ There must be an offer by one person & an acceptance by another  an acceptance ○ The offer must be made to a specific person, & that person must accept the offer on the proposing party's terms  & an exchange of consideration ○ To have a valid contract, there must also be an exchange of something of value—this item of value is called consideration  In order to be bound to a contract, the parties forming it must both be competent & aware of the conditions agreed upon

5. Minors and Contracts Minors and Contracts  A minor is a person under the legal age of adulthood, which is 18 in most states  Minors may make contracts, but they generally cannot be legally held to their terms ○ For this reason, many stores require minors to have an adult cosigner who will assume responsibility if the minor cannot meet the contract's terms ○ Even without a cosigner, however, a minor may be held to contracts involving certain necessary items, such as food or shelter

6.  A contract has been ratified when a minor continues making payments on the contract after reaching the age of majority (differs from state to state)  Once a contract has been ratified, it may no longer be voided by the person who was a minor when the contract was made

7.  State law may create other situations where contracts entered into by minors are enforceable & not voidable  For example, if a minor tells the seller that he/she is 18 & it’s reasonable to believe that he/she is 18, the minor might not be able to get out of the contract agreement  Educational loans entered into by someone age 16 or older may not be canceled in some states  Minors in some states may not be able to cancel contracts for life or disability insurance for themselves if they are a certain age

8. Written & Oral Contracts Written & Oral Contracts  The requirement that certain contracts be in writing derives from the ―statute of frauds‖  This law was originally enacted in England in 1677 to prevent fraud, which often occurred when the only proof of a contract was oral evidence

9.  Most contracts may be either in writing or spoken (oral)  Some contracts, however, must be in writing in order to be enforceable in court  These include ○ contracts for the sale of land or real estate ○ contracts to buy or sell items that are worth $500 or more ○ & agreements to pay money that someone else owes  A written contract provides better evidence of the terms the parties agreed to than an oral contract

10. Illegal Contracts Illegal Contracts  Contracts will not be enforced by the courts if they involve illegal activities  For example, if you agreed to pay $50 in exchange for an item & the seller never gives it to you, you could go to court to make the seller deliver the item as promised  However, if the item you were trying to purchase was illegal drugs, the courts would not enforce that contract

11. Illegal Contracts Illegal Contracts

12.  Although the law will not protect you from making a bad deal, there are some rare cases in which courts find the terms of a contract so unfair to one of the parties that they refuse to enforce them  Courts may also refuse to enforce an agreement that violates an important public policy  Fraud & misrepresentation are other reasons courts may refuse to enforce a contract

13.  Courts generally presume that all parties read, understand, & agree to each provision of their contracts  Someone is unlikely to win in court simply because he or she didn’t, in fact, read, understand, or agree to each provision

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