The Objective Theory of Contracts and Implied Contracts, Exercises of Law

Download The Objective Theory of Contracts and Implied Contracts and more Exercises Law in PDF only on Docsity! The “Objective” Theory of Contracts - For a contract to be formed, there must be a “meeting of the minds” between the parties. - However, this is an objective test; Thus: - If a reasonable third person watching the situation would assume intent on both parties to form a binding contract, the contract will be enforceable. o “I was just joking” = NO DEFENSE o “It was obvious that I was just joking” = VALID DEFENSE Implied Contracts: - Implied in fact: Inferred from the conduct of the parties. - Implied in law: The law enforces as if there were a contract even without a meeting of the minds to form a contract between the parties. The Offer Definition: An expression of a willingness to be bound by a contractual agreement. Contrast: “Invitation to negotiate” (not an offer): something that only expresses an interest in forming a contract eventually or negotiating for one; does not show an intent to be bound. Examples of things that are usually not offers: o “I will not take less than $5,000 for this car.” o “Would you pay me $5,000 for my car?” o “I would certainly consider selling you my car for $5,000 o “I quote you a price of $5,000 for my car.” o Advertisements Exception: If the statement is targeted toward a specific person with a specific quantity, a court might infer an offer.