THE AGREEMENT
SECTION 2: THE AGREEMENT
An agreement is the essence of every contract. The parties to a contract are the offeror (who makes an offer) and the offeree (to whom the offer is made). If, through the process of offer and acceptance, an agreement is reached, and the other elements are present (consideration, capacity, legality), a valid contract is formed.
KEY VOCABULARY
Material:
Subject (matter):
Offeror:
Offeree:
Firm offer:
Party (parties):
Revoke:
Entitled:
Disclaim:
WARM-UP QUESTIONS: 1. Mistress Miller offers her first born child to Rumpelstiltskin, in return for a pile of gold. Miller says, “I promise you faithfully that I will leave the offer open for a week.” Three days later, before Rumpelstiltskin has made up his mind, Miller sells her baby to Cinderella, who is unable to bear children of her own. Assuming it is legal to sell children, was Miller entitled to revoke her offer to Rumpelstiltskin?
2. Napoleon and King George are dividing up the New World. “I offer you Delaware and Massachusetts for $50,000,” George writes to Napoleon. Napoleon writes back, “Throw in New York and you got a deal.” Is there a contract?
3. Butcher phones Jack, and offers to sell Jack a handful of magic beans in return for a cow. Jack says, “I don’t know,” and Butcher responds, “Well, call me and let me know your decision.” Jack mails his acceptance to Butcher the following day, and Butcher receives it three days later. When is Jack’s acceptance effective?
4. The Lucrezia Borgia Exterminating Company decides to buy rat poison from the Rodent-A-No Manufacturing Company. Rodent-A-No sends out its list of terms (price, shipping, etc.) and Borgia wires back, “We will order most of our rat poison from you for the next year.” Is there a contract?
SUMMARY:
I. AGREEMENT The elements of an agreement are an offer and an acceptance --one party offers a bargain to another, who accepts.
A. REQUIREMENTS OF
An agreement is the essence of every contract. The parties to a contract are the offeror (who makes an offer) and the offeree (to whom the offer is made). If, through the process of offer and acceptance, an agreement is reached, and the other elements are present (consideration, capacity, legality), a valid contract is formed.
KEY VOCABULARY
Material:
Subject (matter):
Offeror:
Offeree:
Firm offer:
Party (parties):
Revoke:
Entitled:
Disclaim:
WARM-UP QUESTIONS: 1. Mistress Miller offers her first born child to Rumpelstiltskin, in return for a pile of gold. Miller says, “I promise you faithfully that I will leave the offer open for a week.” Three days later, before Rumpelstiltskin has made up his mind, Miller sells her baby to Cinderella, who is unable to bear children of her own. Assuming it is legal to sell children, was Miller entitled to revoke her offer to Rumpelstiltskin?
2. Napoleon and King George are dividing up the New World. “I offer you Delaware and Massachusetts for $50,000,” George writes to Napoleon. Napoleon writes back, “Throw in New York and you got a deal.” Is there a contract?
3. Butcher phones Jack, and offers to sell Jack a handful of magic beans in return for a cow. Jack says, “I don’t know,” and Butcher responds, “Well, call me and let me know your decision.” Jack mails his acceptance to Butcher the following day, and Butcher receives it three days later. When is Jack’s acceptance effective?
4. The Lucrezia Borgia Exterminating Company decides to buy rat poison from the Rodent-A-No Manufacturing Company. Rodent-A-No sends out its list of terms (price, shipping, etc.) and Borgia wires back, “We will order most of our rat poison from you for the next year.” Is there a contract?
SUMMARY:
I. AGREEMENT The elements of an agreement are an offer and an acceptance --one party offers a bargain to another, who accepts.
A. REQUIREMENTS OF