Contract Basics for Nonproﬁts Google+ Hangout Outline
What is it? A. Contract is a legally enforceable agreement between two or more parBes. Generally creates an obligaBon to perform or not perform some acBon or purchase/sale some goods.
Why are they important A. Evidences the parBes intent when entering the agreement. B. Sets out and memorializes deﬁniBve terms of the transacBons. C. Gives you something a court can enforce; some teeth.
III. Contract formaBon A. Oﬀer 1. Shows a willingness to enter into a bargain or contract, gives someone else the power to accept. B. Acceptance 1. IndicaBon that a party/parBes agree to be bound by terms of the oﬀer that is given in the method required by the oﬀer (if applicable). C. ConsideraBon 1. The cause, moBve, price or inﬂuence which induces a contracBng party into a contract. EssenBally anything of value. D. Present intent to be bound 1. NegoBaBons, a statement IV. Forms of Agreements A. WriVen B. Oral/ParBal C. Formal D. Informal V.
Commonly Used Terms A. Covenant 1. Future promise; ongoing promise not to take certain acBons B. RepresentaBon 1. Statement or act another party is expected to rely upon. 2. A party’s assurance as to a parBcular fact. C. Merchantability D. Non-‐infringement 1. Doesn’t infringe on a third party’s IP rights (copyrights, patents, etc.)
VI. Important Concepts (from the Buyer’s perspecBve) A. ParBes B. DescripBon of the goods or services C. Delivery/Bme and place of performance D. Warranty/Standard of performance