If you are going to work in business or sales, your job might involve entering into contracts with other businesses or individuals. Contracts play a fundamental role in business; after all, almost all business relationships are created by contracts. Having a basic understanding of contract law will give you a leg up when you enter the business world. CONCEPT REVIEW: Before beginning the interactive, review LO 9-1 on page 181. Recall that a legally binding contract requires four elements: offer, acceptance, capacity, and legal object.

Case: Read the case below and discuss the question .

Mr. Barnard is a landlord who has a house to rent. A college student, Julie, saw the sign in the front yard and is interested in renting the house. Mr. Barnard tells her the house is for rent for a total of 12 months, and that rent will be $899 in cash each month plus utilities. After touring a couple of houses in the neighborhood, Julie decides to rent Mr. Barnard's house and comply with his terms.

Discuss:Was there acontract?Stateapplicable rule of law.