Advertisements are not Legal Agreements Essay - 923 Words

Abstract This paper examines the elements of a legal contract and how advertisements are not viewed as legal contracts in most cases. It will review the case of Leonard vs. Pepsico to determine what happens when an advertisement is viewed as a valid offer and responded to with such view. How rewards and auctions are viewed in legal terms. Finally, how this applies to the creative idea to boost tourism by auctioning Bigtown on eBay. Elements of a Legal Contract In order to have a contract that is legally binding, it must be valid and involves at least two parties. They are the offeror, the party making the offer, and the offeree, the party accepting the offer. A contract exists only if the offer is made and accepted. It must be clear and†¦show more content†¦The third element involves contractual capacity. Capacity involves whether the parties are able by law to enter into a contract. Minors, mentally impaired people, and intoxicated people are not legally able to enter into a contract. This is due to the incapacity of the person or persons involved to completely understand the terms. It is therefore not legal and no contract exists. If a party enters into a contract against their will, this is called duress and is not legal (Cheeseman, 2006). The fourth element of a valid contract is lawful object. Every part of the contract must be lawful. If any part of it is unlawful, the contract is void and unenforceable. For instance, if one party offers another party a certain sum of money to buy alcohol for a minor, since it is unlawful to do so, the contract is void and unenforceable. Another thing is if the money offered has been secured by illegal means, this too voids the contract and deems it unenforceable (Cheeseman, 2006). The objective theory of contracts determines the intent of a person to enter a contract. If a reasonable person in the same circumstances concludes that both parties intended to be legally bound by the contract, it is deemed a legal contract. However, a statement made in anger, undue excitement or jest does not qualify as intent. Additionally, an inquiry into the possibility of entering a contract such as, Are youShow MoreRelatedAcceptance Of A Valid Contract Essay958 Words   |  4 PagesFor acceptance in a valid contract it is necessary to state the terms in a clear and direct matter. After both parties are in agreement to the terms of the contract it is clearly understood among the parties that the contract is confirmed with full acceptance of the offer. The acceptance can be confirmed in various ways in order for there to be no uncertainty or room for doubt (U.S.Legal, 2011). A few ways an offer is accepted is verbally face to face, through electronic means such as a text, email Read MoreThe Contract Between Tony And Emma Under Contract Law Essay754 Words   |  4 PagesEmma under contract law? A contract is an agreement made with an intention of legal rights and obligations which the law will enforce. 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