BU231 Study Guide - Midterm Guide: Contract
Document Summary
Contracts are a good example of voluntary legal relationships. Not legal obligations forced upon all, like criminal and tort liability. Parties choose to make a contract to become legally obligated to comply with those terms. Sometimes inequlity leads to unfair contracts, contract law has rules to address this. Contract law set how promises become legally biding promises. Contract: a set of promises that the law will enforce. 4 basic requirements to form legally enforceable contract: offer, acceptance, consideration and intention. In order to become existent, offer has to be made by one party and accepted by another party. Offer: description of a promise one party is willing to make, subject to the acceptance of another party. Form is not vital, as long as its heard and understood. Offer can be communicated orally, in writing or by conduct without words (cab driver opening door) An offeree cannot accept an offer until she is aware of it.
