Business Law 1
Chapters 11, 12, & 13
1. The four elements of a valid, enforceable contract are agreement, consideration, contractual capacity, and legality. Agreement is an agreement to form a contract which includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer. Consideration is any promises made by the parties to the contract must be supported by legally sufficient and bargained-for consideration (something of value received or promised, such as money, to convince a person to make a deal). Contractual capacity is when both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties. Legality means the contracts purpose must be to accomplish some goal that is legal and not against public policy.
2. A company that changes its advertised prizes would have to worry about its reputation because the changing of prizes at the last minute, or even at all, is a very shady thing to do. It sends a very bad message to the public that you are a company that is not to be trusted and nobody will want to do business with that type of history. A reliable company stays true to their word, and the public really supports things like that.
3. An express contract is when the terms of the agreement are fully and explicitly stated in words, oral or written. An implied in fact contract is a contract that is implied from the conduct of the parties. This type of contract differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of the contract. A quasi contract is not an actual contract. Express contracts and implied contracts are actual or true contracts formed by the words or actions of the parties. Quasi contracts are not true contracts because they do not arise from any agreement, express...