Chapter 10; Agreement

Agreement

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Terms in this set (22)

The manifestation by two or more persons of the substance of a contract. Requires an offer and an acceptance.

The movie flashdance was brought about based on the story of this lady's life, Marder. Paramount movies and she made a contract that they could do whatever they wanted with the story and paid her 2,300 dollars. The movie made like 150 mil and still makes money. Sony made a music video and song about it so Marder sued but the contract had such general terms that she had essentially taken herself out of any partnership with Paramount and could not get any more money. "A contract is a contract is a contract."

Offer

The 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.

Three Elements that make an Offer

1. The offeror must objectively intend to be bound by the offer.
2. The terms of the offer must be definite or reasonably certain.
3. The offer must be communicated to the offeree.

Objective Theory of Contracts

A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties. (e.g. I will buy your building for 2 million dollars is indicative of intent. "Are you interested in selling your building for 2 million?" is not an offer. Again, offers made in jest, anger, or undue excitement do not include the necessary objective intent.

Express Terms

The terms of an offer must be clear enough for the offeree to decide whether to accept or reject the offer. Must contain (1)identification of the parties (2) identification of the subject matter and quantity (3) consideration to be paid and (4) time of performance.

Implied Terms

A term in a contract that can be reasonably supplied by the courts. Normally, time of performance and price can be (e.g. the blue book for a car) but parties and subject matter cannot.

Communication

The offer must be offered by the offeror or an agent.

Special Types of Offers

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