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Slide 2 T HE B IG P ICTURE Criminal Law Civil Law The Legal System Tort Law Tort Law Contract Law Contract Law Consumer Law Consumer Law Employment Law Employment Law Slide 3 T ODAY S O BJECTIVES Identify the six elements of a contract. Explain the effects of a contract on a minor. Identify types of contracts. Analyze the need for contracts. Slide 4 How many of you are currently subject to a contractual agreement? What are some examples of contracts? Slide 5 P OTENTIAL C ONTRACTS Credit Card Grocery store club card Selling / buying something to a friend for money Movie rental store agreement College commitment or sports agreement Part-time jobs Email accounts, iTunes, etc. Slide 6 Slide 7 T HE N ATURE OF A C ONTRACT A contract is _____________ ________. Not all __________ are contracts. Slide 8 Six Elements of a Contract Slide 9 E LEMENTS OF A C ONTRACT _______ __________ _________ ___________ _________ In order to have a legally enforceable contract, all ____ elements must be present. Do contracts have to be in writing to be enforceable by law? Slide 10 O FFER Proposal to make a ________ and certain deal with serious ______ Must be _________ to another person Remains open until it is _______, _________, _________, or _______ ___________ can be made and close the original offer Slide 11 A CCEPTANCE Acknowledgement by the ________ (person receiving the offer) that the offer is accepted _______________ Must be ___________ to the offeror in a reasonable manner May be _______, ________, or by ________ Slide 12 G ENUINE A SSENT Reached when a valid offer is met by a valid acceptance The offer and acceptance together create genuine assent. Genuine agreements cannot exist if there is fraud, misrepresentation, mistake, undue influence, etc. Slide 13 Read each example and decide. Slide 14 Jim negotiated a deal to re-roof his house with a carpenter. They did not sign a written agreement. The roofers showed up at the house on the agreed day, and another carpenter had already started work. Was there a contract? Slide 15 Cheryl was fired from her job at the newspaper, and she sued because she thought there had been gender discrimination in her firing. Cheryl and the newspaper company agreed on the basic outline for a settlement, but before it was signed, she backed out and wanted to go to court. Should the settlement be binding? Slide 16 An advertisement in a magazine promises, Our product will clear up your acne or we will give you double your money back! Jenny bought the product, ProAktiv, at a drug store and did not notify the company that she planned on taking them up on their offer. Does the ProAktiv have to pay Jenny double her money back if the product does not work? Slide 17 Slide 18 C APACITY The _________ to enter a contract Contracts can be disaffirmed by: _______ __________________ Slide 19 C APACITY Minors can enter into a contract provided ____________________. The law usually gives minors the right to _________ contracts. Slide 20 C ONSIDERATION Consideration is what is ______ as a result of the contract. May be ______, ________, or __________ Slide 21 L EGALITY In general, a court will not help any party to an _______ contract. Neither party can enforce the agreement. Neither party can get help from the court. Slide 22 Slide 23 Y AHOO ! Who is the offeror? The offeree? What is the offer? What is being offered? Key terms? How does a user accept? When does acceptance bind the user? What is the consideration for each party? Identify any other interesting parts of the contract. Slide 24 What kinds of contracts are recognized by law? Slide 25 T HE L AW R ECOGNIZES _________________ written or spoken _____________ comes from the actions of the parties ___________________ not fully performed _______________ completed by both parties ______________ missing an element, still enforceable ____________ sale of property, rent, wills, estates ________________ business organizations Slide 26 T YPES OF C ONTRACTS _____________ contract that contains two promises. _____________ Contract that contains a promise by only one person to do something, if and when the other party performs some act. Example: Reward ______________ terms stated in the acceptance must exactly mirror or match the terms of the offer. Slide 27 T ERMINATION OF AN O FFER ___________ the taking back of an offer by the offeror. __________ is a refusal of an offer by the offeree that brings the offer to an end _____________ if the offeror sets a time limit of the offer, it must be honored. ____________ is a response to an offer in which the terms of the original offer are changed. Slide 28 T ERMINATION OF AN O FFER ____________ If the offeror dies or becomes insane before the offer is accepted, the offer comes to an end. Although _____ ends an offer, it does not end a ________, except for contracts related to _____________. Slide 29 Slide 30 W E NEED CONTRACTS Because they are important in a ____________________ ___________ (handshake) agreements are in decline Because they have ______________ Because the court can intervene & ____________ Because of the ________ nature of society Slide 31 Slide 32 L AST C LASS Identify the six elements of a contract. Explain the effects of a contract on a minor. Identify types of contracts. Analyze the need for contracts. Slide 33 T ODAY S O BJECTIVES Analyze agreements to determine if a valid contract exists. Determine when a breach of contract occurs. Identify defenses to contractual agreements. Apply contract law to negotiation deals. Slide 34 Slide 35 B REACHING A C ONTRACT If one party does not follow through with ___________ in a contract, the other party doesnt have to perform. Failure to perform is called a ________. Slide 36 What happens when one party breaches a contract? Slide 37 E NFORCEMENT __________ the party who is harmed can request money (equal to the amount lost from the breach) from the other party ________________ if it is still possible to perform the contract, the court can require the party to perform Slide 38 Sam burned his hand on the stove. The burn was so bad that it permanently scarred his hand and made it difficult to grip things. A doctor told him that he could fix his hand with a simple skin-grafting procedure for $1200. After the surgery, Sams hand worked perfectly but, he started growing hair out of the palm of his hand. He tried waxing it, but he couldnt stop the hair from growing back. He decides to sue the doctor for giving him a hairy hand. Slide 39 Certain things can make contracts void, even though both parties agreed on the terms and there was valid consideration. Slide 40 ________________ If one party tricked another party into agreeing to an unfair contract, the court may not enforce it. Example: businesses who try to trick poor or uneducated clients Slide 41 _______________ Lying or misrepresenting something in negotiations Taking advantage of someone in a bad situation Slide 42 A LAW, THE S TATUTE OF F RAUDS Requires _____________________. _____________ _______________ ____________________________ _______________________ __________________ _____________________________ Slide 43 E XPLAIN THE IMPACT OF The Uniform Commercial Code on interstate commerce ________________________ ____________________________.