Elements
This is the first step in forming a contract and must be clearly communicated.
What is an offer?
Contracts must involve a lawful purpose. Otherwise, they are this.
What is void?
The Statute of Frauds requires certain contracts to be in this form.
What is written?
When both parties fully perform their duties, the contract ends through this.
What is performance?
A contract for a $10,000 car is agreed to verbally. The seller refuses to deliver.
Is this enforceable?
No — under the Uniform Commercial Code, contracts for goods over $500 must be in writing.
This occurs when the other party agrees to the exact terms of the offer.
What is acceptance?
If one party is under 18, the contract is usually this.
What is voidable?
Contracts for the sale of this type of property must be in writing.
What is real estate?
When both parties agree to cancel the contract.
What is mutual rescission?
On Shark Tank, a founder agrees on camera to give 20% of their company for $100,000. Later they change their mind.
What legal step must happen after the show for the deal to be enforceable?
What is signing a written contract (formal agreement after due diligence)?
Something of value exchanged between parties.
What is consideration?
When someone is tricked into signing a contract, this may make it invalid.
What is fraud?
Contracts that cannot be completed within this time period must be written.
What is one year?
When one party fails to perform their obligations.
What is breach of contract?
In The Office, Michael Scott promises employees a surprise bonus but never puts anything in writing and never exchanges anything of value.
Why is this likely NOT an enforceable contract?
What is lack of consideration?
If I change the terms of your offer before agreeing, this is created instead.
What is a counteroffer?
A contract signed under threat may be invalid because of this.
What is duress?
Under the Uniform Commercial Code, contracts for the sale of goods over this dollar amount must be in writing.
What is $500?
Money awarded to the injured party after a breach.
What are damages?
A singer like Taylor Swift signs a contract as a minor. Years later, she wants out.
What makes this contract potentially voidable?
What is lack of capacity (minor)?
This element requires that both parties understand and agree to the same terms.
What is mutual assent (meeting of the minds)?
If both parties are mistaken about a major fact, this may affect validity.
What is a mutual mistake?
A promise to pay someone else’s debt must usually be in writing under this rule.
What is the Statute of Frauds?
When something unexpected makes performance impossible.
What is impossibility (or impracticability)?
On Love Island USA, contestants sign contracts agreeing to follow production rules. A contestant breaks the rules and is removed from the show.
What has most likely occurred?
What is breach of contract?