Question

Business law study guide

Contracts– Chapter 10-11:

? Elements of a Valid Contract and meaning of each element – offer acceptance consideration

Mirror Image Rule

Mailbox Rule

Defenses to a Valid Contract

Conditions of a Contract and what will excuse performance of a contract

Acts that will discharge performance of a contract

Remedies – equitable and damages

Three exceptions to privity of contract – assignments, delegation, and intentional third party beneficiary

Parts of a contract

Ability to locate certain provisions in a contract and their meaning.

Shrink wrap, Click-On, Browse Wrap, Smart Contract

Answer 1

1. Elements of a contract can be explained as follows:

-Offer- There should be an offer made from one person to the other which is the first element to form a contract. The offeror should presnt to the party what he has as a proposal for them to understand and sccept.

- Acceptance- Once the offer is made it has to be accepted by the other party only after which the contract will come into existence to form by going through the other elements of it.

- Consideration- It is the element that shows what the second party accepting the offer of the first party himself has to give in return of the offer made and accepted.

- Mutuality of obligation- Both the parties should be obligated and involved in the contract terms equally and mutually. They should understand there responsibility towards it and act by its terms.

- Compentency and capacity- The parties making the offer should be capable to fulfill what he has offered to in the contract and compentency to go through the obligations once they make the contract.

- written instrument- Informal or personal contracts can be made verbally but the formal ones made for business or legal purpose need to have a written mode of agreement for it.

2. Mirror image rule: This is a rule in the formation of the contract that implies that the contract should be accepted by the second party in the exact manner as made by the first party without making any modifications of it. As the name suggests, the contract offered and the contract accpted should be mirror image of one another. The offeror is considered to be the master of his offer hence the acceptor cannot be modifying the offer made to him for accepting it.

3. Mailbox rule: This indicates the time at which the offer made is accepted with a written proof in mail box or email also. To make an acceptance to an offer, it has to be communicated to the offeror, the time of which is noted as it is done by mail or email by the acceptor.

4. The defenses to a valid contract can be claming any of the element of formation of the contract missing. The offeror or accepter proves that the contract is not valid due to the absence of any element then the contract would not stand as valid. Other than these the other defences in a valid contract could be mistake, unconsiousibility, fraud, duress and undue influence.