ACCT 324 Lecture 4: 8/31 Chapter 4
Document Summary
*master the common law concepts of contracts first* Mutual consideration- value given by both parties. What each party gets under the contract. Usually one party gets money, the other gets work or a product. Can"t be an illegal contract (ex: hiring a hitman) Legal capacity- ability to understand terms and nature of contract; legal ability to enter into a binding contract. Lack of genuine assent (fraud, duress, undue influence, misrepresentation) Lack of proper form requirements (statute of frauds writing requirement) Existence and interpretation of contract based on outward manifestations of intent by parties (objective, reasonable person" standard of contract formation and interpretation) If you"re joking but other people can"t tell. Ex: i will pay you if you come wash my car this weekend (both promised, nothing is done yet) Unilateral contract- promise in return for performance of act. Ex: reward for finding a lost dog. Express contract- based on written or spoken words.
