Contracts.docx

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Department
Management (MGS)
Course
MGSC30H3
Professor
Jeff Rybak
Semester
Summer

Description
Contracts Elements in ContractsIntention to create legal relationso Reasonable person test Objective instead of subjective o 2 conditions a person could easily lie at trial law of contract is aim to project reasonable expectationso Exceptions Advertisement and Agreements between family members Mutual agreement through the process of offer and acceptance Bargain by each giving considerationOffer Invitation to treat individuation of a willingness to receive an offerOfferor and offerees position switchAdvertisement may be considered an offer if a reasonable person read it that way Suggestionsadd first come first serve to statement to avoid being bound by contractsCommunication of an OfferStatement is not an offer unless it is communicated and received as an offer Communicated by a written document verbal and conduct The Life of an OfferRevocationo Offeror is entitled to withdraw an offer anytimeo Must reasonably communicated with offeree o Firm OffersOfferor promises to hold an offer open for acceptance for a certain period A firm offer cannot be revoke if it was placed under a seal OR if the offeree paid for the right to accept within a certain periodo Option offeror is paid in exchange for a binding promise to hold an offer open for acceptance for a specific periodo TendersOffer to undertake a project on particular termsTwo purposesConstitutes an offer to enter into a special contract to hold a far tendering process Constitutes an invitation to treat to receive offers to enter into a contract Lapse of timeo Stating acceptance must occur by a specific dateo Factors subject matter of the proposed contract the nature of the agreement volatility of the market the usual practice in the industry Death or insanityo Either the offeror or the offeree dieso Dead person does not have the capacity to enter into a contract o Cannot be a meeting of minds if only one person is aliveo Except the proposed contract does not call upon the affect party to perform personally Rejectiono An offer is terminated once it is rejected unless reoffered Counter offero Reject the existing offer and create a new oneo Battle of the forms when each party claims to have entered into a contract on the basis of its own standard form documentAcceptance Acceptance by PromiseBilateral contract offerors promise to do something the acceptance consists of the offerees promise to do somethingo Acceptance must be communicatedo Unequivocal and it must correspond precisely with the terms of the offer Wordso Offeror can dictate how those words must be communicatedo Provide written acceptance to a written offer Conducto Nod agreeably or silently shake my hand Silence o Cannot be considered as acceptance aloneo Exception if you did something in the past that allows someone to treat your silence as acceptance Acceptance at a Distanceo Two issues Lines of communication may break down necessary to decide if a contract was formed Necessary to determine where and when a contract was formedo The General Rule InstantaneousAcceptance by instantaneous communication is effective when and where it is received by the offeror Instantaneous communication little or no delay in the interaction between the parties Acceptance is effective only when and where the offeror actually receives ito The Postal Rule NoninstantaneousAvoid problems for noninstantaneous communicationAn acceptance that is communicated in a noninstantaneous way is effective where and when the offeree sends it Noninstantaneous communication involves a substantial delay between the time that it leaves one person and reaches another Ex letter is mailed or a package is sent by courier Court refuse to rigidly classify communications as instantaneous or noninstantaneous Judge would consider the parties objective intentions usual business practices and the fairness of placing the risk on one person If the acceptance is late a contract would not be formed Prevents offer being revoked while letter is in the postal system Acceptance by Performance
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