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Business Law 1

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Submitted By jaythiel
Words 407
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Business Law 1
February 24, 2014
Nature and Classification of Contracts
Definition of Contract- legally binding agreement.
Duties and Obligations- each party has both.
Parties to a Contract- promiser, promisee, after there has been an agreement.
Privity of Contract- who can sue, who can enforce. A third party can enter the contract without knowing but can still sue under the contract if they were named in the contract.
Classes of Contracts- 5 types.
Quasi-Contracts- no binding contract has been agreed upon. Equity principles can be created in the court so the other person doesn’t get a benefit at someone else’s expense. Provide unjust enrichment.
Elements of a Contract
An agreement
Between competent parties
Based upon genuine assent
Supported by consideration
Made for lawful objective
In a form required by law

Agreement= offer and acceptance
Offer:
contractual intent definiteness of terms communication of offer to offeree by offeror
Requirement Contracts- agree to buy all of my requirements from you.
Output Contracts- all the soy you produce, I’ll buy.
If you have worked with this person before, generally will not find you liable for breach of contract.
Termination of an Offer

Revocation- depends on if the offeree receive and accepts the offer. If they didn’t you can revoke.
Counter-offer
Rejection
Lapse of time
Death or disability
Subsequent illegality

Acceptance of an Offer
Unqualified Assent
Intent
Mailbox Rule
-offer
-acceptance
-revocation
-rejection
-counter offer

Offeror to offeree: it’s only valid when received by offeree
Acceptance mailed by offeree is valid the moment it is put in the mailbox
Auction Rules
-invitation to bid
-reserves
Capacity
Ability to understand a contract is being made and to understand its general meaning.
Assume capacity unless proven otherwise.
Determine parties are competent.

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