1. CONTRACT LAW – Part 2 How a Contract Begins Types of Contracts Requirements of Acceptance Termination of an Offer

2. Step 1 – Requirements of an Offer-How a Contract Begins
An offer is a proposal made by one party to enter into a legally binding contract.
2 parties to an offer:
Offeror – the person making the offer
Offeree – the person who receives the offer
(Example – Our house construction project in 2015)
Offeror – Brunet & Sons Construction
Offeree – The Wedge Family of Bristol

3. 3 Basic Requirements of an Offer
Made seriously – you intend to enter a legal agreement
Came to our home and discussed work
Definite and certain
Intent to enter into a legal obligation – discussed cost, time factor, start and end date
Communicated to the offeree – by phone, mail, e- mail, etc.
Put in writing – Construction Quote/Estimate

4. Types of Contracts Valid, void, voidable, or unenforceable
Express or Implied
Bilateral or Unilateral
Oral or Written

5. Types of contracts Type of Contract Characteristics Valid
Legally good, legally binding
Void
Missing an element or illegal
Voidable
Able to cancel or get out of (ie. a contract with a minor)
Unenforceable
Court will not uphold (Statute of Limitations)
Express
A contract that may be oral or written
Implied
Comes about from the actions of the parties
(self-service gas station)
Bilateral
Contract that contains 2 promises
Unilateral
Contract that contains a promise by 1 person to do something, if and when the other party performs some act.
Oral
Created by word of mouth – speaking (“an oral contract is
as good as the paper it is written on”)
Written
Contract that is written down – both parties agree to terms and sign off on it

6. Step 2 - Requirements of Acceptance
Acceptance must be unconditional
Must follow the rules regarding the method of acceptance

7. Unconditional Acceptance – what does that mean?
The acceptance must not change any terms of the original offer.
Called the mirror image rule –
Acceptance must exactly mirror or match the offer

8. Methods of Acceptance
Offeror may say that offer is accepted by a specific time or action
Acceptance sent over long distance is in effect when it is sent
Offeror can also specify the time by which the acceptance must be received in order to be effective

9. Termination of an Offer – 1 of 5 ways:
Termination of an Offer – Can you change your mind and withdraw an offer?
Termination of an Offer – 1 of 5 ways:
Revocation
Rejection
Counteroffer
Expiration of Time
Death or Insanity

10. Revocation – taking back of an offer by the offeree
2 rules about revocation:
Can be revoked any time before it’s accepted
Revocation becomes effective when it is received by or communicated to the offeree

11. Know Your Rights – “3 Day Cooling Off Rule” This federal law protects consumers in their homes during door-to-door sales pitches or at sales in temporary business locations. According to the FTC, the 3-Day Cooling-Off Rule does NOT apply to the purchase of new automobiles or items sold online. Vermont Buyers Remorse Laws “Help! My husband signed a contract for a new car last night. We really can’t afford the payments. How long do we have to cancel the contract?” There is nothing in the Vermont buyers remorse laws that give you the right to cancel a contract for a car, or any other major purchase. The 3-day “cooling-off” period applies primarily to door-to-door sales. If you bought that car at a dealership, the sale was final the moment the contract was signed.

12. Termination of an Offer
Rejection
Refusal of an offer by the offeree – brings the offer to an end.

13. Expiration of Time If the offeror sets a time limit.
Example – Eric’s boat

14. Death or Insanity
If the offeror dies or becomes insane before the offer is accepted, the offer comes to an end.
While death ends an offer, it does not end a contract, except for personal services.
A person owes $$ on a car loan – they die; debts they leave are paid out of their 'estate' (money and property they leave behind). If there is no money, the debt is left unpaid.
You are a private duty nurse – if you pass away, the contract ends.

15. Termination of an Offer
Counteroffer –
A counteroffer ends the first offer.

16. Invitation to Negotiate
May look like an offer, but it is not.
Wendell's Furniture
This web site promotes a sale, but it is an invitation to deal, trade, or make an offer.
Most ads are not offers, but invitations to negotiate.

17. Using the contract researched in class, add in the following clauses: method of acceptance the type of contract it is the manner in which the contract ends.
Dog Walker Contract
Acceptance of Contract:
This contract will be accepted and agreed
upon when both parties sign and witness
one another’s signature.
The dog walking service will begin
within one week of signing.
Termination of Contract:
This contract will be terminated in one of 3 ways:
The death of the animal
2 weeks notification by either party of their intent to end the contract
Failure of the dog walker to fulfill said duties outlined in the contract. or impossibility of performance (health issues, relocation)