1. Entering Into Contracts

2.  Justice Journal  Imagine you have your own website design company. You have several contracts with small businesses in your community. In addition to doing design work, you host Web sites, keep the information updated, and troubleshoot problems for these companies.  In your Justice Journal, write about the importance of having a contract, what type of information is included in your contract, and how to bring your contract to an end.

3.  Mr. Benes  Alena  Viktor  Hana  Emil

4.  contract (p. 106)  offer/acceptance (p. 109)  genuine agreement (p. 109)  capacity (p. 109)  consideration (p. 109)  legality (p. 109)  void/voidable contract (p. 110)  unenforceable (p. 111)  express/implied contract (p. 111)  bilateral/unilateral contract (pp. 111, 112)

5.  Following through on a promise is an important underlying assumption in a contract between people and businesses.  Certain key elements must exist for a contract to be legally binding.  What types of elements do you think must exist between two parties so that a contract is binding?

6. How would you define contract?  A contract is any agreement enforceable by law.  Not all agreements are contracts, however.  Whether or not it’s a contract, depends on the circumstances of the agreement.

7. The evolution of contract law shows how its focus has changed  Equity Theory: Parties to a contract exchanged things of equal value. This approach was called the equity theory of contract law.  Free Will Theory: The advent of industrial capitalism forced the courts to shift their focus. They began to ask if the parties had agreed to the terms in the agreement of their own free will.  Formalist Theory: Then the courts began to study the parties’ actions and words to determine if there was a “meeting of the minds.”

8.  Offer  Acceptance  Genuine Agreement  Consideration  Capacity  Legality ***All six elements must be present in order to constitute a contract***

9. offer  An offer is a proposal by one party to another intended to create a legally binding agreement. acceptance  An acceptance is the second party’s unqualified willingness to go along with the first party’s proposal. genuine agreement  If a valid offer is met by a valid acceptance, a genuine agreement exists.  Capacity  Capacity is the legal ability to enter a contract.

10.  Consideration  Consideration is the exchange of things of value.  Legality  Legality means that people can only enter into contracts for legal purposes. People cannot enter into contracts to commit illegal acts.

11. What is one characteristic that you think a contract must have?  Contracts can have any of the following characteristics:  valid, void, voidable, or unenforceable  express or implied  bilateral or unilateral  oral or written

12. Valid, Void, Voidable, or Unenforceable valid  A valid contract is legally binding. void  A contract that is void has no legal effect. a voidable contract  When a party to a contract is able to void or cancel the contract for some legal reason, it is a voidable contract. unenforceable  An unenforceable contract is one the court will not uphold.

13. Express or Implied express contract  An express contract is stated in words and may be either oral or written. implied contract  An implied contract comes about from the actions of the parties.

14. Bilateral or Unilateral bilateral contract  A bilateral contract contains two promises. unilateral contract  A unilateral contract contains a promise by only one person to do something, if and when the other party performs some act. Oral or Written oral contract  An oral contract is created by word of mouth and comes into existence when two or more people form a contract by speaking to each other.  Sometimes, however, it is desirable to put contracts in writing.

15.  Concept Development – Elements of a Contract  Contract Development – Express/Implied Contracts

16.  Vocabulary – Chapter 5, Section 1  Assessment, pg. 113, #’s 1-5

17. Offer and Acceptance

18.  Evaluating Intent  “Janine and Sedrick were joking about how difficult it was to go back in college after the summer break. Janine said that she wished she were back at home and would sell all her books to the first person who gave her $100. Sedrick pulled out $100 and offers it to Janine for her books.”  Should Janine be required to sell her books to Sedrick?

19.  What do you think is the difference between an offer and an invitation to negotiate?

20. 1. Must be made seriously 2. Has to be definite and certain 3. Must be communicated to the offeree

21.  The intention of entering into a legal obligation.  Example: Janine and her books

22.  Advertisements (price tags, signs in windows or on counters, prices marked on merchandise)…unless it contains a specific promise, Example: “first come, first served”  Example 3, pg. 114

23.  Not a certain offer if something is too unclear or vague  Example 4, pg. 115-116

24.  Telephone, letter, telegram, fax, e-mail, or any other method that communicates the offer to the offeree.  Example 5, pg. 116

25.  Must be 1. Unconditional ▪ The mirror image rule ▪ Counteroffer 2. Must follow all rules regarding the method of acceptance Example 6, pg. 117

26.  The time at which an acceptance takes place is important because that is when the contract comes into existence.  Example 7, pg. 119

27.  May occur in any of 5 ways 1. Revocation – example 8, pg. 120 2. Rejection – example 9, pg. 120 3. Counteroffer – ends the first offer 4. Expiration of time 5. Death or Insanity

28.  Vocabulary Section 2  Assessment 5.2, pg. 121