1. Contracts Chapter 23

2. What is a contract? Contract: a legally binding agreement Elements: ◦Offer ◦Acceptance ◦Consideration

3. Offer and Acceptance Offer must be directed at specific person Acceptance is directly related through agreeing to the offer

4. Consideration Consideration is one thing of value given for something else of value ◦Quid Pro Quo ◦Tit for Tat

5. Minors and Contracts Mr. Hook, as a 16-year-old, really wanted to purchase a 42 inch LCD television. The TV costs $2,500.00. Mr. Hook only has $500.00 saved up, but he has a steady job at McDonald’s brewing hot coffee making around $100.00 a month. What can Mr. Hook do? What does it mean to cosign? What is a minor? Cosigner: person held responsible for making payments if minor cannot

6. Written v. Oral Tucker offers to buy Thomas’ old Ipad for $499.99 Newman offers to buy Carlos’s old set of golf clubs for $99.00. Carlos “borrowed” the golf clubs from his neighbors garage Isaiah offers to sell his pet cat to Sheridan. They shake on it. The cat dies after a week. Chris offers to sell his mountain property for $10.00 (because he wants it off his hands) to Alexis. Alexis accepts the offer.

7. Written v. Oral Cont… Nick is really good at forging famous people’s signatures… he decides to start selling “signed” copies of Beyonce’s new album to people. Chris Smith loves Beyonce, so he accepts Perry’s offer of $1000.00 for the “one of a kind” album. David is in debt. He asks Leanne if she would be willing to help him pay it off. She accepts…

8. Written v. Oral cont… In Anytown, USA there is a law that states “every citizen must use natural gas to heat their homes”. Unfortunately, for Dusty and Danny, both residents of Anytown, the only company that offers natural gas is Grant’s Gas. Grant’s Gas makes its customers pay $1000.00/month for the gas, regardless of how much they use… Quan agrees to trim Keeley’s hedges next spring when they are full grown again…

9. Written v. Oral Contract WrittenOral Contracts for sale of land or real estate Contracts for sale of goods $500.00 or more Agreements to pay another person’s debt Agreements for services that will not be performed within one year from date of agreement Must be specific and direct Covers “lesser” issues