In order to establish a contract there must be an agreement between competent parties, based on genuine assent of the parties and supported by consideration, that does not contravene principles of law and that, in certain circumstances, must be in writing.

Read the following scenario. Answer the questions, briefly explaining why you answer as you did and supporting your answer. (Example: 1. The offeror was [name] because [reason].)

Kelly and Pat are siblings. Kelly, the older of the two, wants to buy a house, and Pat's house is on the market. One night as they leave the precinct meeting headed for the friendly neighborhood bar, Kelly says, "Pat, I'll take that house off your hands for $400,000." “Surely you jest,” replies Pat; “I must net at least $500,000.” After verbal negotiation they compromised on $450,000. They both cross their hearts and hope to die that they mean it, and they write the terms of the agreement on a piece of paper to show to Mom. Pat signs the paper.

1. Who, if anyone, was the offeror? Why?

2. Who, if anyone was the offeree? Why?

3. Was a contract formed? If so, why? If not, why not?

4. If a contract was formed, was it bilateral or unilateral? Why?

5. If a contract was formed, was it verbal or written? Why?

6. If a contract was formed, was it express or implied? Why?

7. If a contract was formed, was it an enforceable contract? Why? If not, why not?

8. What was the consideration, if any, of the offeror?

9. What was the consideration, if any, of the offeree?