Contracts PPT

8/11/2019 Contracts PPT

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Contracts

A contract is an agreement

between 2 or more parties that isenforceable at law.


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Key Elements of a Contract

Offer and acceptance

Parties intend to be legally bound

Consideration

Parties must have legal capacity

Compliance with appropriate legalformalities


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Offer and Acceptance

One party makes an offer to another party,which, when, accepted, becomes acontract.

Offer = willingness to contract + termsThere must be:

Intention to have binding contract if

acceptedCan be express or implied

To a particular group or world at large


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Invitation to Treat

A request for offers

E.g: advertisement; displayof merchandise for sale

The actual offer happens when

customer brings item to thecash register. Acceptance iswhen item is rung in.


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Acceptance

The unconditional ratification ofall of the terms of the offer.

Must be unconditional

Made in manner required inoffer or, if unspecified, in areasonable manner

Must be communicated to

offeror (except unilateral offer)Acceptance is accepted upon

communication


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MacNeil v. Dana Canada Corporation


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MacNeil v. Dana Canada Corporation


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Warm Up Question

What was the original purpose for thestatutory holiday celebrated yesterday?a. May Two-Four as a toast to a summer

beverageb. A Civic Holiday

c. The wedding date of Prince Charles and hisfirst wife

d. The birthday of Queen Victoria

e. The naming of Kitcheners inter-city park


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Question 1

What was the Plaintiffs action for?

a. Breach of an employment related contract

b. Breach of fiduciary duty by the employer

c. Damages for the Defendants negligence

d. Damages for the Defendants untruthfulness

e. Damages for the Defendants carelessness


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Question 1

What was the Plaintiffs action for?

a. Breach of an employment related contract*

b. Breach of fiduciary duty by the employer

c. Damages for the Defendants negligence

d. Damages for the Defendants untruthfulness

e. Damages for the Defendants carelessness


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Question 2

What did the Defendant contend?

a. The Defendant was in no way negligent

b. The Defendant did not owe any fiduciary duty

c. There was no contract since no offer wasmade to the Plaintiff

d. The Defendant was in no way untruthful

e. The Plaintiff was completely responsible forhis situation


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Question 2

What did the Defendant contend?

a. The Defendant was in no way negligent

b. The Defendant did not owe any fiduciary duty

c. There was no contract since no offer wasmade to the Plaintiff*

d. The Defendant was in no way untruthful

e. The Plaintiff was completely responsible forhis situation


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Question 3

What did the trial judge conclude constituted theoffer in this situation?

a. The Plaintiffs communication of his offer to takeearly retirement

b. The Defendants communication of its offer of earlyretirement based on the Plaintiffs invitation to treat,which was not forthcoming in the this situation

c. The Plaintiffs communication of his offer to takeearly retirement by not showing up at work?

d. The Defendants communication of its offer toemployees for early retiremente. There was offer by either the Defendant or the

Plaintiff and no contract as a result


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Question 3

What did the trial judge conclude constituted theoffer in this situation?a. The Plaintiffs communication of his offer to take

early retirement

b. The Defendants communication of its offer of earlyretirement based on the Plaintiffs invitation to treat,which was not forthcoming in the this situation

c. The Plaintiffs communication of his offer to takeearly retirement by not showing up at work?

d. The Defendants communication of its offer toemployees for early retirement*e. There was offer by either the Defendant or the

Plaintiff and no contract as a result


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Question 4

What is the legal standard for determining if a contract offerwas made absent an explicit offer?

a. It is an objective standard looking solely at how the offerorviewed his or her actions

b. It is a subjective standard looking solely at how the offerorviewed his or her actions

c. It is a subjective standard looking solely at how the specificofferees viewed the offerors actions

d. It is an objective standard looking solely at how the specificofferoree viewed the offerors actions

e. It is an objective standard looking at how a reasonable personwould view the offerors actions although the offerees viewsare not irrelevant*


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Question 4

What is the legal standard for determining if acontract offer was made absent an explicit offer?a. It is an objective standard looking solely at how the

offeror viewed his or her actions

b. It is a subjective standard looking solely at how theofferor viewed his or her actionsc. It is a subjective standard looking solely at how the

specific offerees viewed the offerors actionsd. It is an objective standard looking solely at how the

specific offeroree viewed the offerors actionse. It is an objective standard looking at how a

reasonable person would view the offerors actionsalthough the offerees views are not irrelevant*


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Question 5

Approximately what was the amount of totaldamages awarded to the Plaintiff?

a. $0-$49,999

b. $50,000-$99,999

c. $100,000-$149,999

d. $150,000-$199,999

e. $200,000-$249,999


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Question 5

Approximately what was the amount of totaldamages awarded to the Plaintiff?

a. $0-$49,999

b. $50,000-$99,999

c. $100,000-$149,999

d. $150,000-$199,999

e. $200,000-$249,999*


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Postbox Rule(Postal Acceptance Rule)

If acceptance is bymail, effective whenposted in the mail,

even if:

Offeror is unaware

Acceptance mailingis delayed, lost ordestroyed


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Termination of Offer

An offer is legally withdrawn and will no longerbecome a binding agreement if, or when, offereepurports to accept it.

Offeree makes a counter-offerOfferee rejects the offer

By revocation, ie; offeror withdraws the offer

before acceptance Lapse- if offer open for fixed time which expires

At death of offeror (with exceptions)


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Parties Intend to be Legally bound

Depends on the context.For example:

Exaggerated advertising

as mere pufferyA joke

Promises made within

family relationshipto offer a friend a meal is

not to invite litigation


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Consideration

Contract is an exchange with value givenby each party. Courts will not evaluatewhether or not there is value in theconsideration

Past consideration is not enoughPerformance of existing duty is not

valid

Courts will relieve promise made

under duress

Consideration can be symbolic


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Exceptions

Contract under seal

Past payment of debt

To a charity where others have pledgedmoney or charity makes legal commitmentbecause of pledge

Promissory estoppel

Promise not to enforce legal right Party relies on promise acting in good faith

Inequitable not to enforce promise


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Legal Capacity

Mentally impaired persons (disability, drugs

or alcohol) where person:

Is incapable of understanding thetransaction

Other party aware of incapacity

Contract is voidable and person must:

Repudiate

Return all benefits received.


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Legal Capacity

Minorsie: personunder the age of 18

Contract is voidable

(minor can enforce butadult party to contractcannot)

Exception:Contracts for necessities.


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Contracts

Oral, written, with orwithout a seal

Simple Contract = writtenwithout a seal

Deed = written and underseal


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Formalities

Some agreements must be in writing to beenforceable:

Promise of an executor to pay debts ofestate personally

Guarantees

Contracts relating to land

Under LegislationSale of Goods Act, contract over value of $40Consumer Protection Act, over value of $50

Family Law Actdomestic agreements


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Guiding principles

Establish a businesspractice or policy whichexplains clearly terms

for delivery of goods orservices

Put it in writing

Keep it simple

Make sure everycustomer gets a copy


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Key Terms

Price or fee

Guarantees orwarranties

Timing

Customers

responsibilities

Documents

Contracts PPT