Requirements for a Valid Contract

Contracts by Minors

A contract is enforceable despite the fact that a party is a minor when: 1. the other party reasonably relied on the minor's representation of majority. 2. The contract is made for something related to the minor's business or necessary for his support or education. 3. The contract falls within the special rules for minors with respect to gratuitous contracts.

Detrimental Reliance

A promisor can be obligated by a promise under the doctrine of detrimental reliance if three criteria are satisfied: 1. The promisee relied on the promise to her detriment. 2. The promisor knew or should have known that the promisee would so rely. 3. The promisee was reasonable in so relying. If the promise was a gratuitous one made without required formalities, then the promisee's reliance is deemed not reasonable. Recovery under this doctrine is discretionary with the court.

Expiration of Offer

A revocable offer expires if not accepted within a reasonable time. An irrevocable offer expires if not accepted within the period during which it is irrevocable.

When Acceptance is Effective

Acceptance of a revocable offer is effective when the offeree transmits it, so long as the acceptance is made in a manner and by a medium suggested by the offer or in a reasonable manner. Acceptance of an irrevocable offer is effective when the offeror receives it, which occurs when the acceptance comes into the offeror's possession.

Contractual Capacity

All persons have contractual capacity except unemanicpated minors, interdicts, and persons deprived of reason at the time of contracting.

Nonconforming Acceptance

An acceptance not in accord with the terms of the offer is a counteroffer.

Revocability of Offers

An offer is generally revocable and may be revoked before acceptance. The revocation must be received before the offer is accepted.

Offers of Reward to the Public

An offer of reward made to the public is binding on the offeror regardless of whether the person who performs the requested act knows of the offer. An offer of reward made to the public is revocable before completion of performance but can be revoked only by the same or equal means used for the offer. If more than one person has performed the requested act, the reward foes to that person who first gave notice to the offeror of the completion of performance.

Cause

For an obligation to exist, there must be either a lawful cause or detrimental reliance. Cause is the reason why a person obligates himself. A party need not express in his contract why he is binding himself. An obligation is valid even though its cause has not been expressed.

Future Things

Future things may be the object of a contract.

Acceptance by Completion of Performance

If an offer can be accepted only by a completed performance, the offeror cannot revoke the offer once performance has commenced for a reasonable time necessary to complete the performance. The offeree, however, is not bound to complete the performance he has begun.

Contracts by Noninterdicted Persons Deprived of Reason

If not interdicted, one may obtain rescission of an onerous contract only upon showing that the other party knew or should have known of the incapacity. A contract entered into by a party without contractual capacity is a relative nullity, but the contract may be rescinded only by the party lacking capacity or his legal representative.

Irrevocable Offers

If the offer specifies a period of time for acceptance, it is irrevocable during that time. If the offeror does not specify a time but intends to give the offeree a period within which to accept, the offer is irrevocable for a reasonable time.

Acceptance by Performance

If the offeror invited acceptance by performance and it is contemplated that the performance will be completed if commenced, a contract is formed when performance begins.

Formalities for Offer and Acceptance

Offer and acceptance may be made orally, in writing, or by action or inaction manifesting consent. No formalities are required unless the law so prescribes or the parties consent to it. If a certain form is required by law for a contract, the same form is required for offer and acceptance.

Object

Parties are free to contract for any object that is lawful, possible, and determined or determinable.

Determined or Determinable

The object to a contract must be determined at least as to kind but the quantity need only be determinable. The determination can be left to the discretion of a third person; if the third party fails to determine the quantity, the court may do so. Quantity may be determined by the output or the requirements of a party, which must be set in good faith.

Acceptance by Silence

When silence leads the offeror to reasonably believe that the offer has been accepted. the contract is deemed confected.