(Q1) Contracts & Mutual Agreement pg. 8,9,10,11

Agreement between two or more people that is enforceable at law

• Offer and Acceptance = Mutual agreement • Competent Parties • Consideration • legality – must be legal subject matter and performed in a legal manner • Formality in some instances – seal, witnesses, notary

Completely enforceable by either party.

Completely unenforceable

valid but may be avoided by either or both parties

all terms are stated either orally or written

Under certain circumstances the law will imply a contract exists

Some states require a formality such as witnesses, a seal or notary

a contract not requiring a formality

all terms have not been completely performed

all terms have been completely performed

a promise given in exchange for an act to be performed

a promise given in exchange for another’s promise

• age at common law an adult was 21., but state statutes could be different • Most states – a minor is 17 and under for contractual purposes

Yes, voidable (the minor’s option) except for necessities

food, clothing, shelter, medical, insurance, items necessary for school or work

• Adjudicated Incompetent people= void • Nonadjudicated Incompetent people= voidable like a minor until person is adjudicated

giving formal consent to a contract making it officially valid

confirmation of something previously done Minor can only affirm or ratify when reaching adulthood and can only disaffirm as a minor (after affirming, you cant disaffirm)

renouncing a contract previously accepted (only minors can do this)

Under certain circumstances, the law will imply a contract exists

offeror proposes terms to an offeree

definite, seriously intended, communicated to offeree

can be revoked by offeror any time before acceptance