Module 3 - LAWS-1030 PDF

LAWS‐1030 ‐ Module 3 Contracts in Society LAWS-1030 Professor Josh Haug 1 Vitiating - to destroy or impair its legal validity. Concepts From Last Class…...

LAWS‐1030 ‐ Module 3 Contracts in Society LAWS-1030 Professor Josh Haug 1 Vitiating - to destroy or impair its legal validity. Concepts From Last Class… Categorization of Contracts (Valid / Illegal) and Vitiating elements General Types (Simple / Specialty / Quasi) 6 NEV’s (DACMcLV) Different Forms (Origin / Participants / Obligation / Completion / Agency / Warranty / etc…) 2 Remember… A Valid Contract is a deliberate agreement between two (or more) competent parties, supported by mutual consideration, to do some legal act voluntarily 3 1  LAWS‐1030 ‐ Module 3 Deliberate Agreement 4 Acting Deliberately Means… Acting with INTENT Intent is a presumption at law… Because Intent is difficult to prove Not all promises made are made with the intent to be held legally liable or responsible (family members, advertisements) 5 The Intention to be Bound The concept of a Contract is that one party intends to do, or refrain from doing, certain things in return for the promise of the other party to do certain things… The first requirement for a valid contract, the intention of the promisor to be bound by the promise made or to create a legal relationship The end result is a meeting of the parties ‘minds’ relating to the terms and conditions… 6 2  LAWS‐1030 ‐ Module 3 Minds/Idea Consensus ad idem Agreement about the subject matter of the promise ie: Textbook: “Do you want my car?” Intent and clarity involving the subject matter are determined by establishing an agreement… 7 What is an Agreement? Definition (for our purposes…) Being of one mind with respect to a given subject matter, regardless of whether there are 2 or more persons… We make Agreements everyday When does an Agreement exist in the eyes of the law? 8 How Does Agreement Take Place? Through the process of: Offer + Acceptance Sources: (1) https://freebcomnotes.blogspot.com/2016/04/offer-and-acceptance.html 9 3  LAWS‐1030 ‐ Module 3 What is an Offer? Dictionary.com provides some 27 possible definitions of the word “offer” For our purposes, I’ve chose 4 to look at… 10 What is an Offer? 1. to present for acceptance or rejection 23. a proposal or bid to give or pay something as the price of something else; bid 24. Law. a proposal that requires only acceptance in order to create a contract 26. a show of intention 11 What is an Offer? Or… from our book “A tentative promise subject to a condition”(1). Sources: (1) Contemporary Canadian Business Law – Page 121 12 4  LAWS‐1030 ‐ Module 3 An offer must be: Seriously Intended Clearly Communicated Definite 13 What Constitutes ‘Clear’ Communication? First Rule: An offer must be communicated by the offeror to the offeree before acceptance may take place Can be by letter, fax, email… text? Spoken word… 14 The General Rule However Only the person to whom an offer is made may accept the offer… 15 5  LAWS‐1030 ‐ Module 3 Clearly Communicated… The manor of acceptance of the offer must be communicated by the offeror to the offeree in the offer. This can be certain acts or words. 16 Definite? Consensus ad idem Clarity and therefore agreement as to the subject matter at hand Vague statements do not constitute an offer (unenforceable) 17 Can an Offer be Conditional? It SHOULD be conditional… Offers can lead to contracts Contract terms and conditions must be clearly defined to establish complete understanding 18 6  LAWS‐1030 ‐ Module 3 Acceptance An acceptance of an offer must be: Seriously intended Clearly communicated Definite UNCONDITIONAL 19 Form of Acceptance As long as the offeror is aware of the unconditional acceptance of the offer, agreement has taken place Acceptance can take many forms, and an offer can be accepted by: Handshake or a Nod Verbal or written communication – “I accept your offer” Action Silence - Conduct Clicking a box 20 Acceptance The Rule - the acceptance of the offer must be communicated to the offeror in the manner requested or implied by the offeror in the offer… Therefore acceptance must be unconditional and made in accordance with the terms of the offer 21 7  LAWS‐1030 ‐ Module 3 Forms of Acceptance See also figure 7-2 in the textbook: 22 What is a Conditional Acceptance? It is called a “counter offer” see also figure 7-3 in the textbook: 23 Can an Offer Lapse? By time Date, ‘reasonable time’, specified event By change in circumstance walking away, hanging up, death… By response ok…but, or no thanks, I’ll get back to you By condition “this offer is valid for…” 24 8  LAWS‐1030 ‐ Module 3 Lapse by Time… Steel pricing is volatile so offers are often time dependent… 25 Can an Offer be Revoked? Yes, generally an offer can be revoked by some communication PRIOR TO ACCEPTANCE Unless its under seal (more later) or an option was used… This is separate from a lapse in that it requires an act by the offeror 26 In Summary… Offer + Unconditional Acceptance = Deliberate Agreement …and ‘Agreement’ can lead to contract!! Be careful of your offers! Make your offers as conditional as you wish a future contract to be! 27 9  LAWS‐1030 ‐ Module 3 Time to hit the Internet! 28 Next… Hit Google (OUCH!) and find 3 examples of Unilateral Contracts that you may be subjected to in your everyday life… Understand what makes them a Unilateral Contract and then Let’s discuss! 29 Wrap Up… 30 10  LAWS‐1030 ‐ Module 3 For Next Class Go to FOL: Review Reading Assignment #3 and answer questions Be prepared for Tutorial #3 31 Next Class Module 3 Tutorial 32 11