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Science in Legal Studies

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RUNNING HEARD: Consideration

Tamara Spencer
Unit 2 Consideration
PA130: Contracts
Patrick Cleveland

On February 13, 2008, Claire Dawn decides to sell Leonardo deCapo her 1965 Corvette Stingray. Dawn agrees within the contract to sell her vehicle for $25,995.00 plus all title transfer fees. A month later, deCapo response to the contract was a letter written on a napkin that reads “Dear Claire, I accept.” deCapo then mailed the acceptance letter to Dawn’s home in Beverly Hills, California. Even though deCapo mailed the acceptance letter to Dawn, she has yet to receive the acceptance of the offer (McGraw-Hill, 2008).
There are two forms of a mutual legal agreement. There are bilateral contracts and there are unilateral contracts. A bilateral contract is when both parties exchange a promise for a promise. In the case of Dawn v. deCapo, parties formed a unilateral contract. Dawn exchanged a promise for an act to deCapo. In the case of Dawn and deCapo, Dawn was the offeror while de Capo is the offeree. In order for a contract to become binding, there only have to be an acceptance upon the offeree. An offeror is the person extending a proposal to form the contract. An offeree is the individual receiving the offer to form a contract (McGraw-Hill, 2008).
A suitable offer has four levels in order for an offer to be valid. In order for an offer to be of standard the parties has to come a meeting of the minds. If there is for some reason, a misunderstanding, the contract isn’t valid. Within every contract there has to parties for there to be an initiation of the contract. The parties in this case are Dawn and deCapo. The terms of the contract has to be clear from the establishment of the contract. The price of the car plus all title transfers fees were understood to be $25,995.00 by the parties of the case Dawn v. deCapo. The…...

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