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3 theories of contract law
1.Equity theory- exchanged items of equal value
2.Will theory- free will. Not a forced contract
3.Formalist theory- study of both parties actions and words to determine if there was a "meeting of the minds," used today
6 elements of a contract
Meeting of the minds (agreements cannot be genuine if there is a mistake, fraud, encouragement)
A contract that contains two promises (If you drive me to work on Monday, I will give you a ride on Tuesday)
A contract that contains a promise by one party to do something when the second party preforms some act (reward agreements- if you find my dog, I will give you a dollar)
offer that is made must be serious ( no jokes or contracts made in the heat of anger)
Requirements of acceptance
2. Must follow the methods of acceptance to correctly accept the contract
Exceptions to the Mirror Image Rule
Contracts for the sale of goods are exceptions to the mirror image rule
Methods of Acceptance
Time- important b/c when an acceptance takes place is when the contract comes into existence. (date postmarked)
5 elements of fraud
1. False representation of fact
2. Knowledge of the falsity by the party making the false representation
3. Intent to deceive
4.reliance from innocent party
5.Actual loss must be suffered by innocent party ($)
False representation of fact
False representation of a material fact (a fact that is important and matters to both parties, not an opinion)
circumstances such as ill health, old age, mental immaturity, etc that places one person in a weaker position. (make contract voidable by innocent party)
when two parties enter a contract, they are permitted by law toe presume the other party has the capacity to also enter the contract
minor that is no longer under the control of their parents or married (responsible for contracts)
After reaching the age of majority, a former minor can ratify a contract either through writing or letting the contract continue
Someone who makes a contract on someone else's behalf (if a contract is made without the guardian present, the contract is void
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