Review

• Defendant asserted that he was joking when he agreed to sell his farm, was rejected by the court

1. Agreement- mutual assent to a bargain

• Reached through the process of “offer” and “acceptance”

• 2. Consideration

  • Something of value given or promised (such as money) to convince a person to make a deal; the consideration must be “bargained for.”

  • Promise of a gift not a contract because no consideration is given

• 3. Contractual Capacity- legal ability to enter into a contractual agreement

  • Intoxicated persons and the insane have limited capacity to contract

  • Although minors can enter into contracts, they are generally able to “avoid” it at their election

4. Legality- propose of the contract must be to accomplish a legal goal and not against public policy

• Genuineness of assent- consent must be genuine and voluntary ( no fraudulent inducement, duress, or undue influence)

• Form- contract must comply with any law that requires it to be in a specified form

• Offeror- party making offer

• Offeree- party receiving offer

• Once the offer is accepted the offeror is bound to a contract

• Offeree can accept the offer by promising to perform some act, such as make a payment or provide services

• Ex. If you cut my grass ill pay you $50

• Offer cannot be revoked once performance has begun

• Plaintiff furnished some service/property to defendant

• Plaintiff expected to be paid for service/property, and defendant knew or should have known payment was expected

• Defendant had a chance to reject the services/property and did not

• Ex. Where one party is a minor, party induced to enter contract by fraud

• Minors can enter contracts but they have the option to rescind in which case is unenforceable against the minor

contract that has been fully performed by both parties

-2 components: an offer by one party and acceptance by the other

-Once there is agreement a contract is formed, provided that the other required elements (consideration, capacity, and legality) are satisfied

• Indication of what the offeror will do or refrain from doing and what he wants in return from the offeree

• Communication of an offer gives the offeree the power to form a binding contract by accepting the offer

• 1.) Offeror must intend to become bound by the offer
  • Intent of the part of the offeror is determined by a person’s words and actions and not by their secret, unexpressed thoughts or feelings( objective theory of contracts

1. Offers mad in anger, jest, or undue excitement are usually not offers
2. Expressions of opinions, statements of intention, and preliminary negotiations are not offers