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\n Describe the requirements of a valid contract. If a contract is written\u00a0unclearly, what happens? Please provide examples to illustrate your points.o Requirements: 500 words minimum, APA format\n <\/p>\n<\/div>\n

Describe the requirements of a valid contract. If a contract is written unclearly, what happens? Please provide examples to illustrate your points. o Requirements: 500 words minimum, APA format
\n MBA\/MSL 646 The Legal Environment of Business Belhaven University Unit 5 Contract Formation and Performance \uf06e Sources of C ontract L aw \uf06e Contract Formation \uf06e Types of Contracts \uf06e Defenses to Contract F ormation 2 Unit Topics Biblical Foundation \uf06e Psalm 119:116 \uf071 Uphold me according unto thy word, that I may live: and let me not be ashamed of my hope . \uf06e Numbers 30:2 \uf071 When a man makes a vow to the L ORD or takes an oath to obligate himself by a pledge, he must not break his word but must do everything he said. What Is a Contract? \uf06e A contract is a promise or set of promises for the breach of which the law provides a remedy and the performance of which the law recognizes as a duty. \u2013 Restatement (Second) of Contracts \uf06e Sources of Contract Law \uf071 Common Law \uf06e Based on English Common Law \uf06e Summarized in Restatement (Second) of Contracts \uf06e Applies to contracts with subject matters of land or services \uf071 Examples \u2013 mortgages, leases, or medical services \uf071 Uniform Commercial Code (UCC) \uf06e Developed as a response to non -uniform common laws from state to state \uf06e Article 2 governs contracts for the sales and leasing of goods UCC v. Common Law \uf06e Accessory Overhaul Group, Inc. v. Mesa Airlines, Inc., 994 F.Supp . 2d 1296 (N.D. Ga. 2014) \uf071 Here the court analyzed the \u201cfundamental nature of the transaction\u201d to decide whether the contract in question was a service contract (and therefore governed under the common law) or a goods contract (and therefore governed under the UCC). \uf071 The court held that the \u201cprimary purpose of a repair transaction is not to sell or purchase parts, but to change or improve the item and return it to the owner. In such cases, the provision of goods is incidental, and the UCC does not apply. Contract Classifications \uf06e Bilateral : first party (offeror) makes a promise in exchange for the second party\u2019s (offeree\u2019s) promise \uf071 Example \u2013 you promise to pay back money with interest and the bank promises to loan you the money \uf06e Unilateral : first party (offeror) makes a promise in exchange for offeree\u2019s performance \uf071 Example \u2013 \u201cDrive my car across the country and I\u2019ll pay you $500 plus expenses.\u201d Contract Classifications, cont. \uf06e Express contracts are written or oral agreements \uf06e Implied -in -fact contracts are non -spoken, non -written understandings \uf071 Example \u2013 When you go into a doctor\u2019s office, you have an implied contract to pay her for her services even though you may not sit down and organize the details \uf06e Implied -in -law contracts (Quasi contracts) are fictional contracts created by a court \uf071 Necessary elements \uf06e One party confers a benefit on another \uf06e Both are aware of the benefit \uf06e Retention of the benefit without compensation would be unfair and unjust (unjust enrichment) Contract Classifications, cont. \uf06e Void contracts are ones to do something illegal or against public policy \uf071 Neither side can enforce \uf071 Example \u2013 contract to purchase illegal drugs \uf071 These contracts are illegal and do not exist at law \uf06e Voidable contracts are contracts in which one party has the right to end the contract \uf071 Example \u2013 contracts of minors are voidable Contract Classifications, cont. \uf06e Unenforceable contracts are contracts that cannot be honored because of some procedural problem \uf071 Example \u2013 a contract was not in writing to comply with the statute of frauds \uf06e Executed contracts are contracts in which the promises under the contract have been performed \uf06e Executory contracts are contracts that have been entered into but not yet performed \uf06e Contracts can be partially executory and part executed Equal Credit O pportunity A ct \uf06e Equal Credit Opportunity Act (ECOA) \uf071 Cannot consider \uf06e Marital status \uf06e Receipt of public assistance income \uf06e Receipt of alimony or child support \uf06e Plans for children \uf071 Spouses have rights to individual credit applications \uf071 Penalties \uf06e Actual damage plus punitive damages of up to $10,000 \uf06e Class action \u2013 punitive damages of up to $500,000 or 1% of creditor\u2019s net worth (whichever is less) \uf06e A.B. & S. Auto Service, Inc. v. South Shore Bank of Chicago, 962 F.Supp . 1056 (N.D. Ill. 1997) \u2013 Here the court held that a bank could inquire into a credit applicant\u2019s criminal history because it relates to the applicant\u2018s judgment and character. Consumer Credit C ontracts \uf06e Subprime or Predatory Lending \uf071 Loans for those with no credit history, bankruptcies, moderate incomes, or poor credit histories \uf071 Contracts are often difficult to understand \u2013 the fine print \uf071 High interest rates and fees \uf06e Truth -in -Lending Act (TILA) \uf071 Part of the Consumer Credit Protection Act \uf06e Purpose was full disclosure \uf071 Application \uf06e Consumer credit transactions \uf06e Open -end transactions (credit cards and lines of credit) \uf06e Closed -end transactions (loans; financing) L ending \uf06e Consumer Financial Protection Bureau (CFPB) \uf071 Newly created under Dodd -Frank \uf071 Will be housed in the Federal Reserve \uf071 Will be funded by the Federal Reserve \uf06e Credit Card Accountability, Responsibility, and Disclosure Act \uf071 Credit terms must last for one year \uf071 Restrictions on soliciting those under 21 and restrictions on colleges and universities Lending, cont. \uf06e Liability Limitations \uf071 $50 maximum liability if you comply with notification requirements \uf06e Credit Card C hips and Liability L imitations \uf06e Credit Balance Transfer Protections \uf071 Additional disclosures and regulations on transferring balances Formation – Offer \uf06e Offer \uf071 Offer is the first part of the contract \uf06e Parties \uf071 Offeror \u2013 person who makes offer \uf071 Offeree \u2013 person who receives the offer \uf06e Must have language that indicates intent to contract \uf071 Not just inquiry \uf071 More than negotiation \uf071 Courts use an objective, not a subjective standard \uf071 Leonard v. PepsiCo, 210 F.3d 88 (2d Cir. 2000) \u2013 the court held that the offer must be one of serious intention and not made in jest \u2013 reasonable person standard \uf071 Communication of the offer to the offeree \uf071 Ads are considered invitations for offers and not actual offers Formation \u2013 Offer, cont. \uf06e Under common law, the offer must contain the following essential terms: \uf071 Parties \uf071 Subject matter \uf071 Price and payment \uf071 Delivery terms \uf071 Performance times \uf06e Under the UCC, the offer must contain the following essential terms: \uf071 Parties \uf071 Subject matter \uf071 Quantity \uf071 *courts can consider industry custom and course of dealing in determining whether the terms are sufficient Formation \u2013 Offer Termination \uf06e Revocation \u2013 offer can be revoked any time prior to acceptance \uf071 Option contracts are an exception \uf06e Offeror is paid to hold the offer open \uf06e It is a separate contract for time \uf06e UCC Merchant\u2019s Firm Offer \uf071 Makes an offer irrevocable \uf071 Offer by a merchant signed in writing states it will be kept open (irrevocable) for a period stated (maximum of 3 months) \uf06e Termination of an offer by Rejection \uf071 Offeree indicates \u201cno\u201d \uf071 Rejection by change of terms is a counteroffer Formation \u2013 Offer Termination, cont. \uf06e Termination by Counteroffer under the UCC \uf071 Non -merchants -addition of terms in acceptance does not equal a counteroffer \uf06e Acceptance results but additional terms are not part of the contract \uf071 Merchants (both parties) \uf06e Battle of the Forms \uf06e Additional terms are part of the contract unless \uf071 Material terms \uf071 Offer limited \uf071 Objection to new terms Checklists \uf06e Drafting Contracts \uf071 1. ID the parties \uf071 2. Define all terms \uf071 3. Answer \u201cwhat if\u201d questions \uf06e Contract Preliminaries \uf071 1. Do your homework \uf06e Background checks \uf06e Learn the nature of the business\/industry \uf071 2. Negotiate details \uf06e Agree on terms that help you accomplish your purpose \uf06e Make sure the written agreement is complete Formation – Acceptance \uf06e Acceptance \u2013 offeree\u2019s response \uf071 Offeree\u2019s positive response \uf071 Must be communicated to the offeree using the proper means of acceptance \uf071 Only offeree has the power to accept \uf071 Silence is generally not a valid form of acceptance \uf071 Mailbox Rule \uf06e This a time rule \uf06e Provides that acceptance is effective upon mailing \uf071 Acceptance by stipulated means \uf06e Mailbox rule applies \uf06e If offeree does not use means stipulated, then counteroffer and\/or rejection results \uf06e Kass v. Grias , 887 N.Y.S. 2d (N.Y. Div. One 2009) \u2013 the court held that the mailbox rule did not extend to documents delivered by FedEx Formation \u2013 E Contracts \uf06e Contracts formed through \uf071 \u201cClickon \u201d \u201c clickthrough \u201d or \u201c clickwrap \u201d agreements \uf071 Offeree agrees to terms contained in the online agreement \uf071 Offeree accepts by clicking \u201cI Accept\u201d Formation – Consideration \uf06e Distinguishes gifts from contracts \uf06e The bargained -for exchange \uf071 What each party is willing to give up for the other party\u2019s promise \uf071 Courts are generally not concerned with the adequacy of consideration, only its legal sufficiency \uf06e Unique issues \uf071 Charitable subscriptions are enforceable even though detriment is one -sided \uf071 Reliance (promissory estoppel) provides element of detriment for contracts not yet begun Statute of Frauds \uf06e Statute of Frauds \uf071 When record is required \uf071 Statute of frauds controls what must be recorded \uf071 Types of contracts \uf06e Real property \uf06e Contracts that cannot be performed in a single year \uf06e Contracts to pay the debt of another \uf06e UCC contracts for the sale of goods for $5,000 or more (increased from $500) \uf06e Writing and E -Commerce \uf071 Uniform Electronic Transaction Act (UETA) \u2013 adopted in almost all states \uf071 Electronic Signatures in Global and National Commerce Act of 2000 (ESIGN) \uf06e UETA is the state recognition of the ESIGN act \uf06e Must give legal effect to contracts that are entered into electronically \uf06e The effect of the record contract \u2013 Parole Evidence \uf071 Contract reduced to its final and unambiguous form cannot be contradicted with extrinsic evidence \uf071 Exceptions include evidence on fraud, misrepresentations, and ambiguities \uf071 UCC exceptions \u2013 merchant\u2019s confirmation memorandum International Contracts \uf06e UN\u2019s Convention on Contracts for the International Sale of Goods (CISG) \uf071 Adopted in 1980 \uf071 Applies to those contracts in which buyer and seller have their businesses in different countries unless the parties agree otherwise \uf06e Complete reading assignments \uf06e Complete writing assignments \uf06e Answer discussion questions \uf06e Complete unit quiz 24 What\u2019s Next ? Jennings , M. (2017 ). Business; It\u2019s Legal, Ethical, and Global Environment . (11 th ed.). South -Western Cengage Learning . The Holy Bible 25 References<\/p>\n","protected":false},"excerpt":{"rendered":"

Describe the requirements of a valid contract. If a contract is written\u00a0unclearly, what happens? Please provide examples to illustrate your points.o Requirements: 500 words minimum, APA format Describe the requirements of a valid contract. If a contract is written unclearly, what happens? Please provide examples to illustrate your points. o Requirements: 500 words minimum, APA […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255846"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=255846"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255846\/revisions"}],"predecessor-version":[{"id":257819,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/255846\/revisions\/257819"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=255846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=255846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=255846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}