1. Creation of Offers Copyright © Texas Education Agency, 2013. All rights reserved.

2. Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts and schools educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Copyright © Texas Education Agency, 2013. All rights reserved. 2

3. Offer and Acceptance Offerer Offerer –person who makes the offer Offeree Offeree –person to whom the offer is made Copyright © Texas Education Agency, 2013. All rights reserved. 3

4. Genuine Assent The agreement MUST NOT be based on The agreement MUST NOT be based on – one partys deceiving another –an important mistake –The use of unfair pressure exerted to obtain the offer or acceptance Copyright © Texas Education Agency, 2013. All rights reserved. 4

5. Legality Agreement cannot involve a crime. Agreement cannot involve a crime. Agreement cannot involve a tort. Agreement cannot involve a tort. Copyright © Texas Education Agency, 2013. All rights reserved. 5

6. Consideration Both sides receiving what the law considers value in some form as a result of the transaction Both sides receiving what the law considers value in some form as a result of the transaction Copyright © Texas Education Agency, 2013. All rights reserved. 6

7. Capacity Parties must have the legal ability to contract for themselves. Parties must have the legal ability to contract for themselves. Parties without capacity: Parties without capacity: –Not legal age to enter the agreement –Under the influence when signing the contract –Lack the mental capability to enter the contract Copyright © Texas Education Agency, 2013. All rights reserved. 7

8. Writing Contracts should be in writing to be enforced by the court of law. Contracts should be in writing to be enforced by the court of law. Copyright © Texas Education Agency, 2013. All rights reserved. 8

9. Requirements of an Offer Must have Contractual Intent Must have Contractual Intent –Jests: The law is not concerned with what is actually in the mind of a persona making what might b considered an offer. Jokes can be upheld as offers. –Statements made in anger or terror are not legally enforceable. Copyright © Texas Education Agency, 2013. All rights reserved. 9

10. Requirements of an Offer Preliminary Negotiations Preliminary Negotiations –Communication to induce someone to initiate bargaining –Not seen by the law as an intent to contract Social Agreements are Not Enforceable Social Agreements are Not Enforceable –Date to the movies –Dinner date Copyright © Texas Education Agency, 2013. All rights reserved. 10

11. Other Requirements of an Offer Offer Must Be Communicated to the Offeree Offer Must Be Communicated to the Offeree Essential Terms Must Be Definite Essential Terms Must Be Definite Essential Terms Must Be Complete Essential Terms Must Be Complete –Proper legal description of the real estate –Price –Full terms for payment –Date for delivery of possession –Date for delivery of the deed Copyright © Texas Education Agency, 2013. All rights reserved. 11

12. Assignments Independent Practice Assignments 1.Requirements for Contracts Flash Card Assignment: Ask students to design a set of six flash cards that represent the six major requirements for a legally enforceable contract. One side of the flash card should have the requirement written on it and a definition. The other side of the flash card must show a picture that represents the concept. 2.Write a Case: Split the class into teams with two members. Each team must write two case studiesone that represents a legal contract and one that doesnt meet the requirements of a legal contract. All cases will be compiled and students will look at each case to see if it has the six elements necessary for a legally enforceable contract. Copyright © Texas Education Agency, 2013. All rights reserved. 12