Bus Law Unit 4 Case Analysis

Please see all attachments before accepting

Please follow Instructors assignment directions

Please Please Please no Plagiarism

Please Use Proper and Correct citations. APA formatting and complete accurate citations

Please DO NOT SEND ANOTHER STUDENT’S COMPLETED WORK

Unit IV Essay
Case Analysis

eBay is one of the biggest online auctioning companies in the world. Buyers and sellers of all types are able to hop online, put up something for sale, and sell it! Basically, the way it works is that you find something you want to bid on, place a bid on it, and wait to see if your bid wins. If it does, you send your information to the seller, and in return, he or she sends you your goods.

Is an eBay auction a legally-binding contract? In a minimum of 500 words, consider whether a bid placed in an online auction on eBay is legally binding and, therefore, enforceable. Explain your reasoning using the elements of contract analysis that you have learned thus far, including valid offer, valid acceptance, and the various forms of consideration.

Cite any direct quotes or paraphrased material from outside sources. Use APA format. Information about accessing the grading rubric for this assignment is provided below.

Kubasek, N., Browne, M. N., Herron, D. J., Dhooge, L. J., & Barkacs, L. (2016). Dynamic business law: The essentials (3rd ed.). New York, NY: McGraw-Hill Education.

BBA 3210, Business Law 1

Course Learning Outcomes for Unit IV

Upon completion of this unit, students should be able to:

7. Explain the basic elements of forming an enforceable contract.
7.1 Recognize the rules that guide the interpretation of contracts.
7.2 Identify the elements of a valid offer and a valid acceptance.
7.3 Distinguish the various forms of consideration.

Reading Assignment

Chapter 9:
Introduction to Contracts and Agreement, pp. 173–189

Chapter 10:
Consideration, pp. 192–203

Unit Lesson

Definition of a Contract

A contract is “a promise or a set of promises for the breach of which the law gives a remedy or the
performance of which the law in some way recognizes a duty” (Kubasek, Browne, Herron, Dhooge, &
Barkacs, 2016, p. 174). Contracts are pervasive in business relations. This unit introduces the sources of
contract law and then describes how contracts are classified. The rules that guide the interpretation of
contracts are essential to the understanding of contracts.

First of all, let it be known that contracts are a part of our everyday lives. Contracts evolve from an ongoing
process of collaboration, trust, promise, and credit. As business leaders, we need to fully understand how
contracts are created, how are they enforced, consequences for breaking contractual promises, and our role
in the contract.

Preconceived notions of what comprises a legal contract are often wrong. Humans speak and act
ambiguously and make assumptions that are often incorrect. In the business world, people often mistake an
offer for negotiation or a bid. The principles of contract law include the legal guidelines for determining when
an offer has been made and accepted and define the important component of consideration. The four
elements of a contract are agreement, consideration, legal purpose, and capacity.

Bilateral versus Unilateral Contracts

The most common type of contract is the bilateral contract, which is defined by Kubasek et al. (2016) “as a
promise exchanged for a promise” (p. 176). Courts favor this type of contract because the law attempts to
provide some type of protection from the risk of revocation by the offeror (i.e., the one who makes the offer). A
good example of a bilateral contract is the sale of an automobile. The buyer promises to pay the seller
$20,000 in exchange for the seller’s promise to provide the legal title to the automobile.

In a unilateral contract, only one party makes the promise. An example is the reward contract described in the
textbook. Jim loses his dog and posts a sign stating “$50 reward for the safe return of my dog.” When
someone says to Jim, “I promise to find your dog for you,” this does not form a bilateral contract. Rather, the
unilateral offer of the sign calls for an action—not a promise. Once the finder brings the dog to Jim, that is
when a contract is formed and when Jim must pay. In everyday life, the most common type of unilateral
contract is the insurance contract. The insurance company promises to pay the insured a stated amount of

UNIT IV STUDY GUIDE

Contracts Part I: The Nature of
Contracts and Agreements

BBA 3210, Business Law 2

UNIT x STUDY GUIDE

Title

money in the event of something happening. All the insured has to do is pay the premium. It is important to
recognize that the insured does not actually promise to pay the premium (i.e., this is not a promise for a
promise).

Quasi-Contract

It is possible for a contract to exist when neither party involved makes a promise. These are cases where a
court will create a contract between the parties to prevent unjust enrichment such as one side obtaining a
windfall at the expense of the other. For example, an electrician spots a hazardous, exposed wire when
replacing a light fixture. He replaces the wire in addition to replacing the light fixture. Although the wire repair
was not specifically contracted for, a quasi-contract is implied, for which the owner must pay the electrician. If
the electrician sues for non-payment, a court could find in his or her favor under the theory of quasi-contract.
The court would create an enforceable implied contract.

Offer

The elements of a valid offer are intent, definite and certain terms, and communication to the offeree. An offer
can be terminated by revocation by the offeror, rejection by the offeree, death or incapacity of the offeror,
destruction or subsequent illegality of the subject matter, or lapse of time or failure of another condition
specified in the offer.

The elements of acceptance of an offer are manifestation of intent to be bound, acceptance of definite and
certain terms, and communication to the offeror. The acceptance of definite and certain terms in a bilateral
contract is subject to the mirror-image rule. Specifically, the terms of the acceptance must be exactly the
same terms as those of the offer. If the terms do not match each other, no contract is formed, and the
attempted acceptance is considered to be a counter-offer.

Consideration

Consideration is the glue that binds an agreement. It is what a person will receive in return for performing a
contract obligation. Consideration can be a benefit to the promisor, a detriment to the promise, a promise to
do something, or a promise to refrain from doing something (i.e., forbearance). For an example of
forbearance, see Case 10-1: “Hamer v. Sidway, New York Court of Appeals 124 N.Y. 538 (1891),” found on
page 194 in the textbook.

Situations involving illusory promises or past consideration are common. The law does not value illusory
promises as consideration because they are promises that appear to be promises but do not, in fact, promise
anything at all. Similarly, past consideration is also no consideration at all. For a promise to be enforceable,
there must be a bargaining and an exchange. A promise cannot be based on consideration that was provided
before the promise was made. This was the reality Jamil Blackmon faced when he sued his friend and NBA
star Allen Iverson. This is the subject of the 2003 federal court case, Case 10-3 on pages 198-199 of the
textbook. For Mr. Blackmon to have received a favorable ruling in this case, the contract would have had to
be formed before the disclosure of the idea to use “The Answer” as a nickname or slogan. Last, a promise to
do something that is already an obligation is not valid consideration.

References

Fried, C. (1981). Contract as promise: A theory of contractual obligation. Cambridge, MA: Harvard University
Press.

Kubasek, N., Browne, M. N., Herron, D. J., Dhooge, L. J., & Barkacs, L. (2016). Dynamic business law: The

essentials (3rd ed.). New York, NY: McGraw-Hill Education.

BBA 3210, Business Law 3

UNIT x STUDY GUIDE
Title