ES 2.00 UNDERSTAND CONTRACT LAW. Obj. 2.01 Understand the elements and characteristics of a contract. Elements of a Contract. Offer Acceptance Genuine Agreement/Assent Consideration Capacity Legality All elements MUST be present to be an enforceable contract. OFFER.
Obj. 2.01 Understand the elements and characteristics of a contract
All elements MUST be present to be an enforceable contract.
Proposal by one party to another with intent to create a legal binding agreement
Unqualified willingness by the offeree to go along with the offer
Mirror Image Rule
Terms of the acceptance must match exactly (mirror) the terms of the offer
Any change means there is no acceptance (counteroffer)
A valid offer has been made by the offeror, and a valid acceptance has been exercised by the offeree
Several causes for genuine agreement to be lacking in a contract
Unilateral or Mutual Mistake
Overcoming a person’s free will by use of force or by threat of force or bodily harm
An error on the part of one of the parties
Both parties are mistaken about an important fact
Innocent statement of supposed fact that turns out to be false
Party to a contract deliberately makes an untrue statement of fact
Legal ability to enter into a contract
A person serving a prison sentence lacks capacity.
Exchange of benefits and detriments by the parties to an agreements
Clause or wording that allows party to escape from legal obligation