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Q: What is an offer?
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A: An offer is the first step to forming a contract. An offer is any action that creates a reasonable expectation that the offering party is willing to be bound by the proposed terms.
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Q: When can you withdraw an offer?
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A: As long as no consideration has been paid to hold an offer open, the offering party can withdraw or retract the offer at any time before acceptance.
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Q: How is an offer accepted?
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A: A party can accept an offer through a clear manifestation by the accepting party to be bound by to the offer. Generally, the acceptance must be communicated to the offering party in the manner proposed by that party.
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Q: At what age can someone enter into a contract?
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A: In most jurisdictions you must be the age of majority. However, an exception is made if a minor is entering into an agreement for necessities (i.e. food, shelter, clothing, etc.). A contract made by a person under the age of majority is voidable at the will of the minor, or their guardian, as long as the minor remains under the age of majority.
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Q: Does a contract have to be in writing?
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A: It depends on the subject-matter and length of duration of the contract. Many contracts do not have to be in writing. However, in California some contracts must be in writing pursuant to the Statute of Frauds. According to the Statute of Frauds, the following contracts must be in writing to be enforceable: (1) promises related to interests in land, (2) promises to pay the debt of another, (3) a promise that cannot be performed within a year, (4) contracts creating a joint tenancy, (5) a promise for the sale of goods of $500 or more, and (6) an agreement to arbitrate disputes.
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Q: What is a breach of contract?
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A: A breach of contract occurs when one party to the contract does not do what they are supposed to under the contract and does not have a legal excuse.
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Q: How are damages calculated for a breach of a contract?
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A: Damages depend on the breached agreement. If no monetary damages occur as a result of the breach, then the non-breaching party may only be able to claim nominal damages. Where monetary damages can be proven, the non-breaching party is generally entitled to compensatory damages. Compensatory damages, by definition, put the non-breaching party in the position that they would have been but for the breach.
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Q: What is specific performance?
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A: Specific performance is an equitable remedy requiring a person who has breached a contract to carry out their obligations under the contract. Generally specific performance is only available if the subject of the breached contract is rare and monetary damages would be inadequate compensation.
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