Legal Relations Chapter 6

  1. What are the Legal Ingredients of a Contract?
    • Offer
    • Acceptance
    • Consideration
    • Intention
  2. Define Offer.
    • The starting point of all contracts
    • One party makes a promise to enter into a contract on specified terms (the "offer"), as soon as the offer is accepted.
    • Only a complete offer can form the basis of a contract.
  3. What is an Invitation to Treat?
    • It is not an offer and is only treated in law as an expression of willingness to do business.
    • Most advertisements and displays of goods in stores are "invitations to treat".
  4. Does the Offeror or the Offeree make the offer?
    • Offeror - Person who makes the offer
    • Offeree  - Person to whom the offer is made
  5. An offer may be terminated by?
    • Revocation - withdrawal of an offer
    • Lapse - expiration of an offer after specified or reasonable period
    • Rejection - the refusal to accept an offer
    • Counteroffer - Turning down an offer and proposing a new one in its place
    • Death or insanity
  6. What is a Firm Offer?
    The law permits offerors to revoke their offers despite a promise to leave the offer open for a set period of time.
  7. When does Acceptance occur?
    • Occurs when the offeree indicates an unqualified (qualified is a counteroffer) willingness to enter into a contract on the terms in the offer.
    • Contract comes into existence at the moment of acceptance.
    • Acceptance must normally be communicated to the other party to be effective.
  8. Uniform Electronic Commerce Act (UECA) states:
    Acceptance of an offer can be made electronically.
  9. Define Consideration.
    • The price paid for a promise.
    • May be other than $$, such as good or services, as long as something of value.
  10. What is a Gratuitous Promise?
    A promise for which no consideration is given. Therefore is no contract.
  11. What are 3 types of Promises that are Enforceable without Consideration?
    • Promise Under Seal
    • Promissory Estoppel
    • Partial Payment of Debt
  12. Define Intention to Contract?
    • In order for one party to enforce the promise of another, the promise at issue must have been intended to be a contractual one, that is, one that would be enforceable by a court of law.
    • If a business relationship, intention is presumed by the courts.
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Legal Relations Chapter 6
Legal Relations Chapter 6