Contracts

Is an offer and acceptance legally binding?

• No

• Yes

• What is legally binding?

If there is both an offer and an acceptance, what does that end up forming?

• An argument

• What is that?

• An agreement

Before parties are regarded as having entered into a _ _ _ _ _ _ binding _ _ _ _ _ _ _ _ there must be an _ _ _ _ _ _ _ _ _.

Contracts do not always have to be in writing to be binding

• True

• False

Elements of a contract include:

• An agreement in in existence between both parties

• The agreement is intended to be legally binding

• The agreement is supported by consideration

• All of the above

Examples of offer and acceptance (an agreement) include:

• You go to a store to buy milk and once you pay for that milk, the cashier hands back your change.

• Mary offers to clean her neighbours yard. He laughs and walks off. She does it anyway and afterwards demands the money.

• A person is auctioning a table and a bidder places the highest bid. The auctioneer sells the table to the bidder and the bidder pays.

What alters the validity of being able to perform an offer and acceptance?

• Whether the offer is clear

• If there is clear communication between both parties

• What colour hair they have

An offer can be made to:

• a specific person or people

• A particular class of people

• To the ‘world at large’ – it may be accepted by anyone who reads the advertisement

• All of the above

An offer can be made to:

• a specific person or people

• A particular class of people

• To the ‘world at large’ – it may be accepted by anyone who reads the advertisement

• All of the above

Which would make a contract not legally binding?

• Both parties agree to the terms/conditions

• The contract is created and signed in proper form

• Both parties have the mental capacity to enter into a contract

• The terms/conditions agreed to break the law.