Contracts

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To be enforceable, a contract must meet these six requirements:

(1) The parties to the contract must be legally competent.

(2) The contract must be for something legal.

(3) There must be something of value, an inducement or consideration.

(4) It must be mutually binding on the parties.

(5) It must be a mutual agreement between the parties.

(6) It must be in writing.

What is an express contract

An express contract is one whose terms are specifically stated and agreed upon, usually in writing.

For example, a written contract between the seller and buyer of a home would be an express contract.

What is an implied contract

An implied contract is one that is implied from the facts and circumstances surrounding the activities of the people involved.

For example, there is an implied contract when you receive any service, they are expected to do what ever their service provides and you are expected to pay for their services, even in the absence of any written agreement between you.

When is a contract formed

A contract is formed when an offer is accepted and signed by all parties.

What comprises a valid offer

An offer consists of an expression of your intent to enter a contract, definite and certain terms, and your communication of the offer to the other person.

How is an offer formally accepted

To accept an offer, you must

(1) Know of the offer

(2) Show your intention to accept the offer

(3) Accept the offer unequivocally & unconditionally

(4) Accept the offer in it's stated form and method

(5) If a response to an offer adds qualifications or conditions,
it is a COUNTEROFFER

What is a counter offer

When the party you have written an offer to does not agree with your stated offer and wants to make changes to your offer they will rewrite your offer with the terms they would accept, with a counter offer

When is the contract effective

A contract is formed when the acceptance is made and communicated, even if the other person does not yet know, this is known as the mailbox rule.

It doesn't have to be actually received by the other person, provided you can prove, for example, that you mailed it on a certain date, within any specified acceptance period.

When is a contract un- enforceable

A contract is unenforceable if a mistake, fraud, innocent misrepresentation, duress, or undue influence is involved.

A mistake is something like a clerical or computation error, not a mistake in judgment.

Duress may be blackmail, violence or the threat of it, or oppressive threats to start legal proceedings.

What is "rescission"-- What is " restitution "

Rescission - means the contract is put to an end, and all parties are left in the position of never having made a contract.

Restitution - means restoring the injured party to the position he was in before entering into the contract.

Specific Performance

Specific performance requires the actual promise to be carried out as nearly as practicable.

This remedy is applied to contracts involving parcels of land and other one-of-a-kind, tangible things.

Specific performance is usually awarded when money damages would not adequately compensate for the breach.

Specific performance cannot be forced in personal contracts for services, but can be enforced to stop someone from breaching a negative covenant, such as a "non-compete" clause in an employment contract.

When is a contract void

A contract is void when it has no legal effect - no rights or duties - and is therefore unenforceable.

A contract made by a minor or an insane or intoxicated person, for example to buy a car, can be made void because the person making the contract lacked the necessary legal capacity.

Contracts

What makes a contract enforceable

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