CONTRACTS
MGMT 217
INTRODUCTION:
IN GENERAL, THERE ARE FOUR REQUIREMENTS FOR A CONTRACT:
1. MUTUAL CONSENT GENERALLY EVIDENCED BY AN OFFER AND AN ACCEPTANCE;
2. CONSIDERATION;
3. TWO OR MORE PARTIES HAVING LEGAL CAPICITY TO ENTER INTO A CONTRACT; AND
4. AN OBJECT OF THE AGREEMENT THAT IS NOT PROHIBITED BY LAW.
EXPRESS AND IMPLIED-IN-FACT CONTRACTS
QUASI CONTRACTS
MANIFESTATIONS OF ASSENT: GENERALLY EVIDENCED BY AN OFFER AND AN ACCEPTANCE
OFFERS
1. GENERAL RULE: AN OFFER IS DEFINED AS A COMMUNICATION WHICH GIVES THE RECIPIENT OF THE COMMUNICATION THE POWER TO CONCLUDE A CONTRACT BY ACCEPTING. THE BASIC TEST OF WHEN A COMMUNICATION AMOUNTS TO AN OFFER IS WHETHER THE RECIPIENT COULD REASONABLY BELIEVE THAT THE ONE COMMUNICATING INTENDED TO GIVE HIM THE POWER TO CONCLUDE A CONTRACT. WHETHER IT IS REASONABLE FOR THE RECIPIENT TO BELIEVE THAT AN OFFER HAS BEEN MADE IS DETERMINED FROM THE WORDS AND ACTIONS OF THE PERSON MAKING THE ALLEGED OFFER, AND THE CIRCUMSTANCES SURROUNDING THE MAKING OF THE COMMUNICATION.
ALTHOUGH IT MAY BE DIFFICULT TO DETERMINE WHETHER AN OFFER EXISTS IN A PARTICULAR CASE, COURTS HAVE CONSIDERED THE FOLLOWING FACTORS IN MAKING THE DETERMINATION:
2. AQUOTE@ AND OFFERS. GENERALLY, THE USE OF THE TERM AQUOTE@ INDICATES THAT NO OFFER IS INTENDED, WHILE THE USE OF THE TERM AOFFER@ INDICATES THAT AN OFFER IS INTENDED. AT THE SAME TIME THE TERM IS NOT DISPOSITIVE OF THE RESULT.
3. DEFINITENESS OF COMMUNICATION
4. INQUIRIES AND INVITATIONS FOR OFFERS
5. NUMBER OF OFFEREES
6. ADVERTISEMENTS
7. AUCTIONS: WITH OR WITHOUT RESERVE