bus 263 class slides, march 4, 2014

Chapter 9:

Formation of

Traditional and e-

Contracts, cont'd

cc licensed ( BY NC SA ) flickr photo by LOSINPUN: http://flic.kr/p/aNHv22

• Contract?

– A PROMISE or a SET OF PROMISES for which the law gives a remedy or the performance of which the law in some way recognizes as a duty

• Contract?

– A PROMISE or a SET OF PROMISES for which the law gives a remedy or the performance of which the law in some way recognizes as a duty

Contracts

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elements of a contract?

cc licensed ( BY NC SA ) flickr photo by Álvaro Canivell: http://flic.kr/p/34n54H

agreement

• offer • acceptance

Definite terms

• Offeror

• Offeree

• Quantity

• Price

• Delivery

• Payment

No definite terms?

Invitation to make offer

Objective Theory of Contracts

• Existence of a contract is based on what an objective 3d party would understand, not subjective intent of parties

objective?

subjective?

cc licensed ( BY ) flickr photo by Dawn Huczek: http://flic.kr/p/5yXYaR

Objective evaluation?

• Weight

• Ingredients

• Freshness

• Shape

• Size

• Appearance

• Aroma

Subjective evaluation?

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cc licensed ( BY NC SD ) flickr photo by jasoneppink: http://flic.kr/p/77A7PR

"objective standard"?

• "Reasonable person"

• "should know"

"subjective intent"?

• "that's not what I meant"

cc licensed ( BY NC ) flickr photo by Dennis Gotta:

http://flic.kr/p/6aXDU3

contractual capacity

© TomT, http://flic.kr/p/5VDVhf

legal subject matter

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daikiki: http://flic.kr/p/6MVs3i

Statute of Frauds

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consideration

Gordon Bach case

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Requirements for an offer?

Is the letter an offer or an invitation to make an offer?

cc licensed ( BY ) flickr photo by Dawn Huczek: http://flic.kr/p/5yXYaR

If there was an offer, has it been accepted?

Dates?

Action Sent Rec’d Effective

Offer

Acceptance

Revocation

Dates?

Action Sent Rec’d Effective

Offer Feb 1 Feb 3

Acceptance

Revocation

Dates?

Action Sent Rec’d Effective

Offer Feb 1 Feb 3

Acceptance Feb 3 Feb 6

Revocation

Dates?

Action Sent Rec’d Effective

Offer Feb 1 Feb 3

Acceptance Feb 3 Feb 6

Revocation Feb 2 Feb 5

cc licensed ( BY NC ) flickr photo by Indiana Public Media: http://flic.kr/p/8vqJgq

mailbox rule

Dates

Action Sent Rec’d Effective

Offer Feb 1 Feb 3 Feb 3

Acceptance Feb 3 Feb 6 Feb 3

Revocation Feb 2 Feb 5 Feb 5

If correspondence had been by email. Would there be a contract?

Phone? Text?

How could Bach prevent this kind of confusion about acceptance &

revocation?