WEEK 8

Question 1

Basic requirements for Contract Formation

Answer 1

1. Intent
2. Meeting of the minds
3. Offer, accept, consideration
4. Capacity
5. Legality

Question 2

Essential elements of a contract

Answer 2

1. Offer
2. Acceptance
3. Consideration

Question 3

Define an invitation to treat

Answer 3

Expression of willingness to negotiate a deal, but it is not a formal offer.

Question 4

What happens to an Offer?

Answer 4

1. Accepted
2. Rejected
3. Lapse
4. Revoked
5. Counter-offer

Question 5

Requirements of acceptance

Answer 5

• Awareness of acceptance
• Positively communicated
• Must be for legal purposes and have legal capacity

Question 6

Concepts for the offerees awareness of terms

Answer 6

• Must be aware of the terms
• If the offeree is not part of the writing process and there are unusual terms, it needs to be pointed out or the offeree is considered to not accept those terms (standard form contracts)

Question 7

Rules in the communication of acceptance

Answer 7

1. Positively expressed
2. Communicated in the method of the offeror
3. Whatever is agreed on

Question 8

Bilateral vs Unilateral contract

Answer 8

• Bilateral requires acceptance of the offeree
• Unilateral only requires the performance of task

Question 9

What if the terms are vague?

Answer 9

• Can be void of vagueness
• The court can fill in the gaps if possible

Question 10

Is an agreement to enter a contract considered binding?

Answer 10

No, a promise to enter into a contract would not be legally binding (Letters of intent)