Law for Business

Mr. Bernstein

How Are Contracts Satisfied? pp 200-205

November 17, 2014

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Law for BusinessMr. Bernstein

Contracts - ReviewA Private, Voluntary Agreement to Exchange

Valuable Things or PromisesAn Agreement in a Form Courts Will EnforceThe Basis for All Economic Activity

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Law for BusinessMr. Bernstein

Requirements of an Enforceable Contract1) Offer and Acceptance – Serious, definite offer,

accepted in full2) Genuine Assent – Cannot be based on duress or

undue pressure (Mollie), an important mistake or deception (Diana)

3) Legality – Items or services exchanged must be legal (John, Danielle)

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Law for BusinessMr. Bernstein

Requirements of an Enforceable Contract, cont.4) Consideration – Both parties must receive

something of value (Alexis)5) Capacity – Both parties must be legally able to

contract (Simone)6) Writing – Some agreements must be in writing

(Kiana)…contracts can be subject to interpretation (Jim)…under some conditions contract obligations can be transferred (Mr. B)

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Law for BusinessMr. Bernstein

Next Topic: How Are Contracts Satisfied?Contracts Are Usually Discharged By PerformanceKey Terms: Cancellation, Substantial Performance,

Default or Anticipatory BreachHow Else can Contracts Be Discharged?

By Agreement – Recission, Novation (Substitute Party), Accord/Substitution/SatisfactionBy Impossibility of PerformanceBy Operation of Law – ie Bankruptcy

If a Tender is made in good faith and rejected

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Law for BusinessMr. Bernstein

Remaining Topics: Remedies when a contract is breached (Kiana & Diana)Denials for remedies when contract is breached (Simone &

Alexis)Sales contract specifics (John & Danielle)Transfer of ownership specifics (Mollie & Jim)