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1、Intro/ObjectivesContractandNegotiationWhatisaContract?WhatisaContract?ApromiseorsetofpromiseswhichthelawwillenforceTheperformanceofwhichthelawrecognizesasadutyThebreachofwhichthelawwillremedyWhatinfluencestheContract?TheElementofaContractOfferMutualAsse
2、ntIntentiontocreatelegalrelationsOffer/acceptanceGenuineConsentConsiderationCapacitytoContractProperFormSubjectmattermustbelegalWhatisanOfferProposalmadebyoneparty(offeror)toanother(offeree)manifestingawillingnesstoenterintoabargainAnoffermust:haveclear
3、intentbedefinitebecommunicated(oral,writtenorbyconduct)MutualAssentIncommercialagreements,presumptionisthatcontractingpartiesintendtobelegallyboundBothpartiesmustwillinglyagreetothetermsofthecontractOnepartycannotbecoercedorputunderduressorthreatsContra
4、ctcannotbeobtainedbyfraudormistakeWhatisanAcceptance?AcceptanceiswheretheoffereeindicatesaconsenttobeboundbythetermsoftheofferAnacceptancemustBeunconditionalBeunequivocalBelegallycommunicatedtotheofferorAcceptanceNoparticularformrequiredsolongasintentio
5、nisclearOnlytherecipientoftheoffercanacceptAcceptanceeffectivewhenitissentMustaccepttheentireofferasmade-”acceptance”proposingdifferenttermsisacounterofferConsiderationExchangeofpromisesorthingsofvalue‘Gratuitous’promisesmaynotbeenforceablePromisemaybet
6、odosomethingortorefrainfromdoingsomethingAproposalmustbesufficientlydefinitetobeenforceableCapacityApartymaylackthecapacitytoenterintoalegallyenforceablecontractMinorsMentalIncompetenceImpairment–drugsCorporations–veryfewinstanceswhereacorporationmylack
7、capacityFormofcontractOralcontractsNotallcontractsmustbeinwritingtobeenforceableBewareofmakinganoralcontract(intentionallyorunintentionally–recognizetherisksinvolved)Althoughcourtsmayupholdanoralcontract,courtinterpretationcanbeveryriskyAsageneralrule,a
8、lwaysdocumentcontractsinwriting-FormofcontractRequirementforwriting–SomecontractsmustbeinwritingtobeenforceableSubjectmatter(e.g.interestinland)Surety(answeringforthedebtofothers)Periodforperformance(e.g.greaterthan1year)Submissi
