Law for Business Mr. Bernstein Contracts: Transfer of Contractual Duties, pp November 14, 2014

Law for Business Mr. Bernstein Contracts - Review A Private, Voluntary Agreement to Exchange Valuable Things or Promises An Agreement in a Form Courts Will Enforce The Basis for All Economic Activity 2

Law for Business Mr. Bernstein Requirements of an Enforceable Contract 1)Offer and Acceptance – Serious, definite offer, accepted in full 2)Genuine Assent – Cannot be based on duress or undue pressure (Mollie), an important mistake or deception (Diana) 3)Legality – Items or services exchanged must be legal (John, Danielle) 3

Law for Business Mr. Bernstein Requirements of an Enforceable Contract, cont. 4)Consideration – Both parties must receive something of value (Alexis) 5)Capacity – Both parties must be legally able to contract (Simone) 6)Writing – Some agreements must be in writing (Kiana) …Note: Contracts can be subject to interpretation (Jim) 4

Law for Business Mr. Bernstein Next Topic: Transfer of Contractual Duties Assigning Contractual Rights Rights can generally be assigned if performance is not changed Examples of non-assignable rights: Claims for damages, Rights to personal services where trust or confidence is involved, Future wages, Claims vs. USA, or if banned in contract language Delegating Contractual Duties When delegating, you remain responsible for performance Obligations of Obligors Following receipt of notice Obligor must perform 5