Chapters 6-11. Unit 2 Notes. Ch. 6 - Contracts. Agreement between 2 or more people Offer & Acceptance: serious, definite & accepted without change. Can be oral. Acceptance makes the contract. - Offeree can counteroffer, reject or accept.
-Offeree can counteroffer, reject or accept.
-Offeror can rescind (revoke) anytime before acceptance
2. Mutual (genuine) Assent: both parties agree to & understand the contract.
3. Consideration: must be something of value exchanged.
A)Joe tells Jack he will give him a ride to work.
B)Joe tells Jack he will give him a ride to work in exchange for parking money, consideration has been exchanged.
4. Legality: if the purpose of the contract is illegal it may be voided
-An ability to understand terms of contract ----Corporations and most adults have capacity. -Minors, mentally incompetent and intoxicated do not have capacity & any contracts they enter into are voidable.
6. Legal Form – must be in writing if:
1. Gambling: illegal except
2. Usury Laws: most states cap interest rates charged to customers.
3. Agreements involving Discrimination
4. Agreements to obstruct justice
5. Agreements made without competency license
6. Agreements affecting marriage negatively
7. Agreements that restrain trade
8. Agreements not to compete
1. Names of parties
2. Subject matter description
6. Other essential terms
1. Rescission & restitution
2. Monetary Damages (Compensatory, consequential, punitive, liquidated)
3. Specific Performance
Inter vivos Gift: “between the living”
Casa Mortis Gift: “gift on the occasion of death”