Contracts

A contract…is any agreement enforceable by law

Think of an example of…

• a contract you have entered into or will enter into.

• a contract that one or both of your parents have entered into.

• a contract that a business would enter into.

Elements (parts) of Contracts

OfferAcceptance

Genuine Agreement

Legality

Capacity

Consideration

Offer and Acceptance

Offer

Proposal by one party to another to enter into some type of agreement.

The offer must be:• Serious

• Definite and Certain

• Communicated

Who is making an offer to sell goods for an additional 50% off?

How could you accept this offer?

Is this a serious offer?

Is this offer “definite and certain?”

How has this offer been “communicated?”

Contracts

Acceptance

Agreeing to the terms of the offer

Contracts

Acceptance It must be unconditional - MIRROR IMAGE RULE

Contracts

Counteroffer

…becomes a new offerContracts

Seeing it in action…

eBay

What are the requirements of an offer?

3 basic requirements

What is the mirror image rule? (having to do with acceptance of an offer)

it must not change the original terms of the offer in any way

What is the difference between the mirror image rule and a counteroffer?

Mirror image rule does not change the offer in any way.

A counteroffer happens when the terms of

the acceptance change the original offer.

Contracts

Next up…

Genuine Agreement

a.k.a. “meeting of the minds”