Offer Acceptance by offeree Consideration the thing each side bargains for each side giving and getting something Sufficient Specificity of Essential Terms coalescence of each sides understanding of the transaction ID: 718159
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Contract Formation – Elements of Formation
Offer
Acceptance by offeree.Consideration : the thing each side bargains for – each side giving, and getting, something.Sufficient Specificity of Essential Terms (coalescence of each side’s understanding of the transaction).*
Formation requires all four of these – if one is missing, there is no “formation.”The offeror is the master of the offer – if offeror includes specific requirements regarding other elements, they control…Some things seem like elements, but they are better categorized as something else, e.g. a defense. These include legal capacity to contract, that certain agreements need to be in writing, etc.
Compare this to the definiteness requirement of the offer and the responsiveness requirement of the accepance. The difference is sometimes subtle – does an offer convey enough? Does and acceptance convey enough? Finally, for the last “element,” do the conceptions of each party on the transaction coalesce?Other states, and the MBE, call this the mutuality or the meeting of the minds element.If one or more elements fail, no formation. Do the parties just walk away? Is there any damages owed when an attempted contract fails?
© 2018 Paul J. Carrier, Paul J Carrier, LLC Blue – Category Recognition; White – Specific Category; Yellow – “Black Letter” Rules (to be memorized); Green – Main Factual Issues – Analysis; Red – Upper-Level, Integrated Comprehension
Elements