Professional Documents
Culture Documents
III.
IV.
V.
VI.
II.
a)
Does the controversy relate to the goods component of to
the services/other component
The primary contract law policies
1.
Predictability
2.
Freedom of Contract
3.
Fairness
4.
Consistency
5.
Efficiency
MUTUAL ASSENT
Restatement (2nd) of contracts 17(1)
Except as stated in subsection (2), the formation of a contract requires
a bargain on which there is a manifestation of mutual assent to
the exchange and a consideration
I. Meeting of the minds is required for a contract, however in Lucy v. Zehmer
the court moved away from meeting of the minds to a more objective
standard of whether a reasonable person would belief from the persons
actions that they were serious
1.
Under the objective theory the rule is first persons
words/actions, judged by a reasonable standard, must manifest an
intention to agree to the deal. This is in contrast with the subjective
standard where meeting of the minds is required
2.
Second person must not know first person did not intend to
agree to the deal
OFFER
Offer and acceptance are not required to form a contract, it is just one way to
form mutual assent.
Restatement (2nd) of Contracts 24
An offer is a manifestation of willingness to enter into a bargain, so
made as to justify another person in understanding that his assent to
that bargain is invited and will conclude it.
Restatement (2nd) of Contracts 26
II.
1.
Beall v. Beall
2.
Board of Control of EMU v. Burgess
MODES AND METHODS OF ACCEPTANCE
1.
LaSalle National Bank v. Vega
The offer itself governs the means of acceptance
2.
Ever-tite Roofing v. Green
Notice of acceptance is required, however the terms of this
contract waived the notice requirement. Therefore this explains
how they allowed the contract to commence when work begins.
Why do we say that commencement begins with loading the
trucks and not when the actual work on the roof begins? Well
because loading the trucks and driving over does involve
resources.
Additionally, the Greens had all the contact information for
evertite, and easily could have contacted them to say the offer
was rejected.
When the offer specifies a specific manner or manners of
acceptance, the offeree must comply with the terms if he wants
to accept the offer, otherwise a contract is not formed.
3.
Davis v. Jacoby
a)
Unilateral contract- accept by doing the thing asked for
b)
Bilateral contract- accept by promising to perform
5
III.