Examines the formation of contracts. Includes: - Offers - Mutual Assent - Terms - Consideration - Modification
Legally enforceable agreement that contains the rights and responsibilities of the contracting parties.
What are the types of law that govern contracts?
- Common Law: employment contracts, personal service contracts
- UCC Article II: anything moveable; tangible personal property
- Mixed: When the contract deals with both services and good, predominant purpose of the contract reigns
Elements needed to form a valid contract
- Mutual assent (offer + acceptance);
- Consideration (bargained for legal detriment); and
- No defenses to formation
Contract created by mutual promise of performance. The most common type of contract.
Ex. You agree to pay a certain amount of money in exchange for title of a home.
Requires full performance as method of acceptance; binding once performing party begins performance
- An outward, objective manifestation of willingness to enter into a bargain;
- That creates the power of acceptance in the offeree (i.e. nothing left to do except say “yes”)
Under common law, what terms must be included in the offer?
- Subject matter
What terms are required for real estate K’s?
Description of the land and price terms
What is the only essential term the UCC requires in a contract?
⭐️ As long as parties intended to make K, UCC will supply gap fillers for missing terms
What terms are required for a requirement or output contract?
Quantity expressed in terms such as “all” or “only” or “solely”
Are advertisements offers?
No, unless they contain specific and detailed information as to the price, quantity, and who can accept
(Ex. “50 blazers for sale for $50 for law students who passed the bar)
Are rewards offers?
Yes, because they generally offer money in exchange for performance of a specified task
How can an offer be terminated?
- Rejection; or
When can an offer be terminated?
Any time before acceptance
What types of offers are irrevocable?
- Option contracts;
- Firm offers;
- When there is detrimental reliance;
- When offeree has started performance on a unilateral contract
Makes an offer irrevocable if:
- Offeror promised to keep offer open for a specific period of time; and
- Promise was supported by consideration
Offer that is irrevocable (for a maximum of 3 months) under the UCC as long as:
- Offeror is a merchant;
- Offer is signed, in writing; and
- Expressly provides that the offer will be held open
Does the offeree need to know about the offer to accept?
Yes, otherwise no power of acceptance was created