Contracts Chapters 710

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ContractsChapters 7-10

• By Mrs. Townsend and Nicole Whitman

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What is a Contract?
A Contract is any agreement enforceable at law.
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Elements of a Contract
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Characteristics of a Contract
Contracts have certain characteristics or
qualities that fall into four categories. A
contract may be

• Valid, void, voidable, or unenforceable
• Express or implied
• Bilateral or unilateral
• Oral or written

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Requirements of an Offer
An offer has three basic requirements (1) it
must be seriously intended, (2) it must be
definite and certain, (3) it must be communicated
to the offeree.
Requirements of an Acceptance
As in the case of an offer, making the acceptance
unconditional and following the rules regarding
the method of acceptance are certain basic
requirements for an acceptance.
Termination of an Offer
Termination of an offer may come about in any of
the following five ways (1) Revocation, (2)
Rejection, (3) Counteroffer, (4) Expiration of
Time, and (5) Death or Insanity.
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Mistake
Unilateral Mistake A mistake as to the nature of
the agreement is one type of unilateral mistake
that cannot be an excuse to avoid a
contract. Another type of unilateral mistake is
a mistake as to the identity of a party to a
contract. This mistake may be cause to avoid a
contract.
Bilateral Mistake A bilateral mistake can be a
mistake as to the possibility of
performance. Both parties can be mistaken as to
the identity of the subject matter when they
enter the contract. The contract maybe avoided by
either on of them.
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Fraud
A fraud is a deliberate deception to secure an
unfair or unlawful gain. Persons who are induced
to enter into contracts by fraud have a choice.
They can rescind, or cancel, the contract or sue
for money damages. To succeed in a lawsuit for
fraud, the party bringing suit must prove five
elements (1)there must be a false representation
of fact (2)the party making the representation
must know it is false (3)the false representation
must be made with the intent that it be relied
upon (4) the innocent must be made with the
intent that it be relied upon (5) the innocent
party must actually suffer some monetary loss
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Innocent Misrepresentation
If that persons statement of that knowledge
turns out to be false and the other person
honestly believes it to be true, it is known as
innocent misrepresentation.
Duress
Duress is overcoming a persons will by use of
force or by threat of force or bodily harm.
Another type of duress is economic duress. It
consist of threats to a persons business or her
to enter a contract without real consent.
Undue Influence
Undue influence is unfair and improper persuasive
pressure exercised by one person in a
relationship of trust with another person.
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Contracts of Minors
Majority- reached the age of legal
adulthood Minority-not yet reached the age of
majority Minor-has not yet reached the age of
majority
What is Capacity?
Capacity is the legal ability to enter a
contract. Contracts by minors are avoidable by
the minor. Since they have not reached majority
yet they are not entitled to carry out the terms
of a contract.This means that minors may
disaffirm or avoid (not be bound) their contracts
if they so choose.This privilege is suppose to
protects the minor who, because of immaturity and
inexperience, might be taken advantage of or make
a poor decision. The law does not intend,
however, to give the minor the right to take
advantage of other people.
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THE END