Chpt 5 Formation of a Contract: Offer and Acceptance
What is a Contract?
A contract is a voluntary agreement b/w two sides to go into a legal relationship ( a
contract may be created through verbal or writing, a contract to be written is NOT a
requirement of a contract for it to exist)
Full Binding Contract
in order for a fully binding contract to exist you must have 3 elements.
All elements must exist in order to have a fully binding contract.
ALL ELEMNTS MUST BE VOLUNTARY
(a) Offer vs. Invitation to Treat
(b) Basic Rules that Apply to the Offer
i) Knowledge of the Offer
An offer may lapse in 3 ways
1) The offeror may set a Lapse date
2) If offer is silent, then the offer will lapse at a reasonable time.
3) An offer may lapse if either of the partied have died or gone insane before
iii) Revocation ( with draw from offer )
Revoke before acceptance even if promised to keep offer open , even
before lapse date BUT not after acceptance
“contract within a contract” to keep offer open by paying