December 1st Notes

Fundamentals of Legal Practice
December 1, 2009


Books for next set of classes are very expensive.
Books: Local, State, Federal Rules
Perkins law firm may be offering them. WA Rule books, can be any year. Every law firm has them, call around town.


***FINAL next week***

Contracts
1. Offer
2. Acceptance
3. Consideration

Offer
- someone has to initiate process, to enter a K(contract)
1. Must be definite (clear)
2. Communicated to the offeree

- When courts look at K was there a "meeting of the minds"
- Offers can not be third party (watch example)
-Just looking to see if there was intent, keep it simple

Exception to Rule:
Nordstrom ad in paper for shoes
-yes it is definite, yes communicated to offerees
-it's an offer to negotiate
-they may not have enough shoes for the entire city, not unlimited supply

Exception to the Exception:
-merchant puts specific specificity in the ad
- 4 at this price, while they last, first come first serve basis, vin # in car ads

Statements that are not Offers
1. Offers made in jest (joking about selling car for $1)
-if a reasonable person perceives it as a real offer, it may not be in jest
-"Objective Theory of Contracts"  how the reasonable person next to you perceives offer, is there intent?
 Example:
"I'd really love to sell you my stereo"
-is it definite? YES why? sounds like commercial, sounds believable to OTC
-is it communicated to the offeree? YES

2. Social Invitations

3. Offers to negotiate or receive offers from others

Special Kinds of Offers
1. Requirements contract offers
- I will buy all the carrots I need.

2. Output contract offers
-I will buy all the carrots you have.

3. "Services as needed" contract offers
-lawnmowing as needed

4. "Cost plus" contract offers
-sell plus a profit %

5. Contract offers referring to market price


Ways to terminate an offer
-offers do not come back to life once they are terminated, the offer is lapsed
-it must be a new offer
1. Rejection
-rejected from the offeree

2. Revocation
-when the offeror takes back an offer
-at any time, even if he said he will not revoke the offer
Some offers can not be revoked:
1. Options
-give money to keep offer open (a consideration)
2. Situations involving detrimental reliance
-relying on the fact the offer is open (moving for a job)
3. Firm Offer
-signed promissory note to not revoke (merchant's usually)

3. Counteroffer ***(always asked on final)***
-if the offeree makes an offer to the offeror the original offer dies
-I won't give you $500 for the watch, but will give you $300.
-can not change your mind and take original offer, it was terminated
mirror image rule:
-any slight deviations terminates the offer and is a counteroffer
-most courts have gone away from this rule
-examples: payments plan, value of extra items

4. Expiration of Time (reasonable)
-putting a time frame on the offer
-finding decade old ad in box is no longer an offer
-depends on item for sale: gold coin, ice cream cone, used car

Can not form a contract if:
5. Death of either party
6. Insanity of either party

7. Illegality after the offer but before the acceptance
-if the subject matter was illegal when the contract was formed it was void
-needs to be illegal after the offer

8. Terms
-offers lapse when they say they will
-specific terms in the offer
"Master of the Offer" - the offeror sets the circumstances of the offer

9. Bankruptcy
-the bankrupt party can no longer can accept contracts
-the party in charge of their bankruptcy is in charge of their contracts

10. Acceptance
-when the offer is accepted, it becomes a contract

Acceptance
-any manifestation of assent (agreement)
-only exception is terms (it may say it needs to be accepted in a certain way)

Silence is not acceptance
-You can't force acceptance on an offeree
-Exception: if the offeree says silence can be acceptance

The mailbox rule ***will be on final***
-acceptance of an offer binding upon dispatch
-once I write a letter, I accept offer to buy the car then mail it
-rejection/revocation of an offer is binding upon receipt
Example: page 424 Sally and Mark offer
-the offer is not revoked, there was a valid acceptance prior to revoke
-they needed to add terms to the offer regarding acceptance/revocation

Competent Parties
-must be competent, same as marriage and wills
-low standard
-general presumption you are competent
-what you have and heirs