Contracts

PowerPoint Presentation: 

When is it legal to download music off the Internet? Review prior slide

PowerPoint Presentation: 

Section 4.1 Agreements and Contracts

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts A contract is any agreement enforceable by law.

Contracts: 

Contracts The majority of contracts are developed between businesses and their customers. Can you think of any?

Contracts: 

Contracts If you went to the supermarket and bought something, you formed a contract. Chances are that you either signed a check or a credit card charge slip and either one constitutes forming an agreement to pay for the food you purchased.

Contracts: 

Contracts Even if you paid cash, you formed an agreement with the merchant Example: The merchant is promising that the ribeye steak you purchased is indeed a ribeye steak and it is not tainted.

Contracts: 

Contracts What are some common contracts that you have used?

Common Contracts: 

Common Contracts Common contracts: Movie tickets Concert tickets Sporting events (Contract terms and conditions)

contracts: 

contracts Read terms & conditions on back of ticket What does scalping mean? Is it legal? http://www.ticketnews.com/news/Pennsylvania-Governor-Signs-Law-Allowing-Ticket-Resale2716

PowerPoint Presentation: 

According to Dictionary.com , scalping is : an unauthorized ticket speculator who buys tickets to a performance or sports event and resells them at inflated prices

Scalping: 

Scalping In 2007 Governor Rendell signed a bill allowing the resale of tickets. “A reseller that uses [an] Internet website shall not be required to obtain a license to resell through the Internet website if the operator of the Internet website: Has a business presence and physical street address in this Commonwealth and clearly and conspicuously posts that address on the Internet website, or has a business presence in this Commonwealth and one of the following: a registered agent, a foreign business license or a certificate of authority issued by the Department of State.” Essentially, this will mean that StubHub , Ticketmaster or other sites would have to set up shop somewhere in the state, a relatively easy proposition. The bill also requires the reseller to issue a refund if the ticket is incorrectly described at the point of purchase. http://www.ticketnews.com/news/Pennsylvania-Governor-Signs-Law-Allowing-Ticket-Resale2716

Contracts: 

Contracts Contracts are everywhere You create a contract any time you agree to exchange things of value.

PowerPoint Presentation: 

You should never enter into a contract without understanding the legal responsibilities involved.

Contracts: 

Contracts Review Credit Card contracts Go over special offers Introductory rates APR, late fees, cash advances, default, variable Review small print (late payment)

Contracts: 

Contracts Not all agreements are contract Promising to take out the trash is not a contract. An ad in the newspaper offering a reward for a lost puppy is a type of contract. If a person finds the puppy and answers the ad the reward that was promised is due.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts A contract requires six elements: offer capacity legality acceptance consideration genuine agreement

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts An offer is a proposal to do something or pay an amount to another party. Acceptance is when a party agrees to an offer made by another party.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts Capacity is the legal ability to enter into a contract. Consideration is something of value offered or exchanged.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts Legality means that a contract may not involve breaking the law. Genuine agreement means that a legal offer is met with a legal acceptance.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts Contracts can be valid, void, voidable, or unenforceable. A contract is valid if it is legally good. A contract is void if it lacks one or more of the elements of a contract.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts A contract is voidable if either party can cancel the contract for a legal reason. A contract is unenforceable if it will not hold up in court.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts A contract can be express or implied. An express contract is a contract stated in words and may be either written or oral. An implied contract comes about from the actions of the parties.

Section 4.1 Agreements and Contracts: 

Section 4.1 Agreements and Contracts Contracts may be unilateral or bilateral. A bilateral contract is when both parties promise to do something. A unilateral contract is when one party promises to do something only if the other party does something.

PowerPoint Presentation: 

Section 4.2 How a Contract Begins

Contracts: 

The 6 elements of a contract form the heart of contract law. Contracts Offer Capacity Acceptance Legality Consideration Genuine Agreement

Offer: 

Offer An offer is a proposal by one party to another intended to create a legally binding agreement. An acceptance is the 2 nd parties willingness to go along with the 1 st party’s proposal.

Section 4.2 How a Contract Begins How do you know if an offer is real?: 

Section 4.2 How a Contract Begins How do you know if an offer is real? To be valid, an offer must be: made seriously definite and certain communicated to the offeree (person who receives the offer)

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins An offer must be made with serious intent to enter into a legal obligation. Offering to sell your car to someone for $5.00 as a joke is not a legally binding offer.

Invitation to Negotiate vs Offer: 

Invitation to Negotiate vs Offer Invitation to negotiate are invitations to deal, trade, or make an offer. Is a price tag on a sale item an offer or an invitation to negotiate?

Invitation to Negotiate vs Offer: 

Invitation to Negotiate vs Offer Price tags, signs in store windows and on counters, and prices marked on merchandise are invitations to negotiate. Because sellers have limited merchandise to sell and cannot sell an advertised product to every person who sees the ad, most newspapers, catalogs, & magazines are not treated as an offer.

Invitation to Negotiate vs Offer: 

Invitation to Negotiate vs Offer If customers say they would want to buy and advertised item, they are making an offer to buy item at the advertised price. The storeowner is free to accept or reject the offer. There are exceptions to this rule.

offer: 

offer The courts consider some advertisements as offers when they contain certain promises or phrases like, “first come, first served,” or limit the number of items that will be sold. Because this limits the number of people who can buy the product, it becomes an offer not an invitation to negotiate.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins An offer must be definite and certain . An offer to buy a friend’s iPod for a reasonable amount at some time in the future does not constitute a valid offer.

Definiteness and Certainty: 

Definiteness and Certainty A landlord of an apartment with faulty plumbing might agree to pay a share of the cast if the tenant fixes the plumbing, but the court would not enforce the contract because it was not possible to determine what the parties meant by a share.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins An offer must be communicated to the offeree, the person the offer is made to. This can be done in person, or by phone, letter, e-mail, text message, or any other means of communication.

Section 4.2 How a Contract Begins How do you know if an offer is real?: 

Section 4.2 How a Contract Begins How do you know if an offer is real? To be valid, an offer must be:

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins The second element of a legally binding contract is acceptance of the offer by the offeree. Certain requirements must be met: it must be unconditional it must be communicated to the offeror

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins To be unconditional, an acceptance must follow the mirror image rule , which means it must match the terms of the offer.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins Like an offer, an acceptance must be communicated to the offeror. At the time the acceptance takes place, the contract comes into existence.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins An offer can be terminated, rather than accepted, in five ways: revocation counteroffer death or insanity rejection expiration of time

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins Revocation is when the offeror takes back the offer. Rejection is when the offeree refuses the offer.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins A counteroffer is when the offeree changes the terms of the offer. The offer is terminated and the offeror can accept or reject the counteroffer.

Section 4.2 How a Contract Begins: 

Section 4.2 How a Contract Begins If the offeror sets a time limit on an offer, such as one week, it must be accepted by then or the offer is terminated. An offer is also terminated if the offeror dies or becomes insane.