1. Agreements & Contracts

2. CONTRACTS
Do you think Ford’s claim of 36 mpg gas consumption is a contract?
Why or why not?

3. 6 elements to a contract 1. Offer 2. Acceptance 3. Genuine agreement
4. Capacity
5. Consideration
6. Legality
Of these six elements, which is the most crucial to setting up a valid contract?

4. Characteristics of a Contract
Valid
Void – no legal force
A. Between two minors
Voidable
A. Between a minor and an adult
Unenforceable

5. Characteristics of a Contract
Express Contract
Oral, written
Implied Contract
By actions of the people involved

6. Characteristics of a Contract
Bilateral Contract
Two promises
Unilateral Contract
One promise

7. Characteristics of a Contract
Oral
Word of mouth
Written
Exact terms
Proof

8. 3 Requirements of an Offer
1. Serious Intent
Intention of entering a legal obligation
2. Definite and certain
Clear understanding of who is responsible for what details
3. Communication to the offeree
via – telephone, letter, fax,

9. Acceptance: unqualified willingness to go along with the offer.
Unconditional Acceptance
Mirror image rule
Exact match of terms stated in the offer
Counteroffer
Modifying the terms of the original offer
House
Car
Athlete

10. Termination of an Offer
Revocation: take back of an offer.
Rejection: refusal
Counteroffer: ends the first offer. (Mexico)
Expiration of time
Option
Death or insanity