Elements of a Contract

Elements of a Contract

1. 1. Offer: The objective theory of contracts-a-metting of the minds. It has genuine intend to be bound and communication is sufficiently definite and certain because it uses definite and certain terms. It is also properly communicated to the offeree.

   • 2. Acceptance: an agreement that's communicated to the offeree. It's absolute and unequivocal. It can come in oral, written, or text letter form.
     • mirror image rule-general contract law: you cannot vary the terms of the offer, any change in terms is a rejection and there will be a counteroffer. The counteroff starts the whole process over again, and the offeree will become the offeror, and the original offeror will become the offeree, and so on so forth
     • 3. Mutual/Genuine Assent: Both parties have to willingly and knowingly enter into the contract. It can be void or voidable. If it was made under duress, undue influence, or fraud, it is void. However, if there was mutual mistake, it is VOIDABLE.
       • Elements of fraud
         • False representation
           • material (important) info in which a reasonable person would rely
             • fact (generally not a personal opinion, unless an expert is expressing it)
               • known to be false (or made with reckless indifference as to its truth)
                 • the intent is to deceive the victim and induce the victim into a contract
                   • the victim is deceived and contracts in reliance on the lie
                     • injury occurs, actual harm must occur for money damages. Recission is allowed without proof of actual harm.
                       • recission: the revocation, cancellation, or repeal of a law, order, or agreement

2. 4. Consideration: A bargain for exchange, the price or inducement to convince another to create a contractual obligation. Basically, what each party is willing to give up for the other party.