The Seven Elements of a Contract
Contract - an agreement between two or more persons which is enforceable at law.
Offer - a tentative promise made by one party, the offeror, subject to a condition or
containing a request to the other party, the offeree.
- must be communicated by the offeror to the offeree before acceptance may
occur.
(you return my lost dog Fluffy, mass mailing of credit cards or magazines)
- only person to whom made may accept.
- distinguished from an invitation to treat which is an invitation by a party to
another to make an offer (is an advertisement in the paper an offer or not)
- ticket cases and the standard form contract
- Lapse of an Offer- the termination of an offer when the offeree fails to accept it
within a specified time, or if no time is specified then within a reasonable time
- Revocation of an Offer- An offer may be withdrawn by the offeror at any time
before acceptance, even when it has promised to hold the offer open for a
specified time. Exceptions: (1) an option an agreement to keep an offer open
for a specified time in return for a sum of money and (2) Contract under a
Seal.
Acceptance
- makes tentative promise binding
- must be communicated in the manner presented or contemplated by the
offeror in the offer
(i) verbal- telephone/in person
(ii) written- postal acceptance rule
- telegraph- upon delivery for transmission
- must be unconditional- anything less is an counteroffer or an inquiry
- silence does not equal acceptance- unless offeree consented to such an
arrangement (book of the month club)
- unilateral contracts- a contract where the offer is accepted by performing
an act or series of cats required by the terms of the offer (reward to return
Fluffy)
- bilateral contract- a contract where offeror and offeree trade promises
and both are bound to perform (a promise by both parties)
Considera