Lesson Plan Business Law

Teacher Name: Meghan Green

Date and time lesson will be taught: Wednesday October 14th, 2015; 5th & 7th
(12:14-2:19 & 2:25-3:55)
Lesson Title: Chapter 6 Contracts: Offer and Acceptance
Name of Secondary CTE Course: Business Law
Curriculum Framework Unit:
Standard(s): 4.2 Explain the importance of binding agreements and the essential
elements of a contract

Objectives: The learners will be able to

1. Identify and define the 6 requirements of a contract
2. Differentiate between an offeror and an offeree
3. Create a contract show casing the 6 requirements of a contract
Content to be presented in lesson:

What is a contract?
o An agreement between two or more parties that create obligations

Offeror- party making the offer

Offeree- the party for whom the offer is made for
What must a contract have to be valid?
o 6 requirements of a contract
Offer and Acceptance
An agreement must be mad between the offeror and the offeree
on which the contract is based on
Genuine Assent
The agreement must not be based on one partys deceiving
another, on a important mistake, or on the use of unfair pressure
exerted to obtain the offer or acceptance
Legality
The agreement between parties must be legal. An agreement to
commit a crime or tort cannot be a legally enforceable contract.
Consideration
The agreement must involve both sides receiving what the law
considers value in some form as a result of the transaction.
Capacity
Both parties must have the legal ability to contract with them
selves.

Writing
Some agreements must be placed in writing to be fully
enforceable in court.

3 tests of an Offer (a proposal by an offeror to do something, provided

the offeree does or refrains from doing something in return)
1. Contractual intent must be present in the offer
a. Meaning or intending to make a contract or doing something for
someone.
2. The offer must be communicated to the offeree
a. The offer must be made directly to the and the cannot except an offer
without knowing it has been made
3. The essential terms of the offer must be complete and definite
a. A proper legal description of the real estate
b. Price
c. Full terms for payment
d. Date for delivery of possession
e. Date for delivery of the deed
How Can an Offer be Ended?
o Revocation
The right to withdraw an offer before it is accepted
o Time stated in offer
The offeror may state how and when the offer must be accepted
o Reasonable length of time
If a specific time is not set, it will end after a reasonable length of
time, which will depend on the circumstances surrounding
o Rejection
When an offeree clearly rejects the offer
o Counteroffer
If the offeree changes the offerors terms in important ways and
sends it back to the offeror
o Death or insanity
When the person can no longer act in favor of themselves the law
takes over
o Destruction of specific subject matter
When the material for which the contract is state is destroyed the
offer is off
What is Required of an Acceptance? (Occurs when a party to whom an
offer has been made agrees to the proposal)
o Come from the person or persons to whom the offer was made
An offer made to one person cannot be accepted by another
o Match the terms in the offer
Mirror image rule- requires that the acceptance must exactly match
the terms contained in the offer
o Be communicated to the offeror
This must be more than a mental decision it must be communicated
to the offeror
Bilateral Contracts- require that the offeree accept by communicating the
requested promise to the offeror, until this is done there is no contract

Unilateral Contracts- when the offeror requires that the offeree indicate
acceptance by performing his or her obligations under the contract

Introduction to the Lesson/Hook:

Allotted
time: 10 minutes Slide 1
Contracts- Offer and Acceptance Today we are going to be talking about contracts.
Can anyone give me an example of a contract?
o Ask students if any of them know what a contract is and have a
discussion about the topic of contracts. I will let them share
examples of contracts they may have entered into or share an idea
they have about contracts.
Learning activities/procedures:
20-30 minutes

Allotted time:

Slide 2
What is a contract?
An enforceable agreement between two or more parties that create
obligations
Slide 3
Who makes up a contract?
Offeror makes the offer to the Offeree
Offeree sends an acceptance to the Offeror to form a contract.
(I will use questions like who is the offeror? Who is the Offeree? To test
comprehension.)
Slide 4
6 Requirements of a Contract
In every contract there are six requirements that must be met in order for it
to be valid
Slide 5
Offer and Acceptance

An agreement must be made between the offeror and the offeree on which
the offeree accepts or declines the offer.

Slide 6
Video- Offer and Acceptance, selling an airplane What did we notice in this video
that related to offer
and acceptance? Who was making the offer? Who accepted the
offer? What were the terms?
Slide 7
Genuine Assent- The agreement must not be based on one partys deceiving
another or on the use of
unfair pressure exerted to obtain the offer or acceptance

Slide 8
Video- Genuine assent, malpractice
This is an example of a doctor who did not have genuine assent. When you
go into have
surgery you are forming a contract with that doctor saying that you
agree to pay the amount necessary
for them to preform the surgery and the doctor
is entering the contract saying they will perform their
duties to the best of their
abilities. By this doctor acting careless and childish he is breaking his contract
to the
patient, causing them more harm than good. The doctor showed deceptive notions about
how
he would care for the patient.

Learning activities/procedures continued:

Slide 9
Legality

The agreement between parties must be legal. An agreement to commit a

crime or tort cannot be a legally enforceable contract. We just talked
about a tort in the last chapter. Can anyone give us a definition of a tort?

Slide 10
Video- Hiring a Hit Man
This would be an illegal contract and action that could not be upheld in a
court of law. Paying
someone to do you dirty work will only land you in jail. Also
if your going to hire a hit man make sure he isnt an undercover cop (Humor)
Slide 11
Consideration

The agreement must involve both sides receiving what the law considers
value in some form as a result of the transaction. This may be a monetary
value or service for a service or good for a good. As long as both sides are
exchanging something of value the contract is legal.

Slide 12
Capacity

minors, or

Both parties must have the legal ability to contract with anyone
Examples: congenital disability, illness, physical injury, advanced age,
Intellectual deficiency.

Since most all of you in here are minors or under 18 years of age, you would
not be able to
enter into a legal contract that could be held up in court. If you went
out today and bought a car, they could not legally hold you it against you if you did not
make payments. They knew you were a minor and being that youre a minor you have
the right to back out and say you do not want that car. But dont get any ideas. Most
places will run full background and credit reports

Slide 13
Writing
Some agreements must be placed in writing to be fully enforceable in court.
If you want to make sure your contract has proof and can be proven in a
court room, you
better have it in writing and both parties should show
acknowledgement of their obligations.

Slide 14
Video- Peanuts video about contracts
Slide 15
What was wrong with the contract and terms in this video?
Can someone give me some examples of issues with this contract that was
made? Discuss with
your row some things you saw that were wrong with this
then we will discuss as a group.
Learning activities/procedures continued:
Slide 16
What is an Offer?

A proposal by an offeror to do something provided the offeree does or

refrains from doing something in return. Who is the offeror? Who is the
offeree?

Slide 17
3 Tests of an Offer
Slide 18
Contractual Intent must be present in the offer
Meaning or intending to make a contract or doing something for someone
You have to show that you have every intent on entering into that contract
without deceit or
false terms.

Slide 19
The offer must be communicated to the offeree
The offer must be made directly to the intended party and cannot be
accepted without knowing the offer has been made (Offeror to Offeree.)
Another party such as a third cannot accept an offer part or outside part.
If I am making a contract with you I must directly delivered my offer to you
in order to be
communicated properly. (Directed at a student near by) If
your partner accepts the offer that is
intended for you on their behalf
that offer is not valid. It has to be face to face.

Slide 20

The essential terms of the offer must be complete and definite

A proper legal description of the real estate, price, full terms for payment,
date for delivery of possession, and date for delivery of the deed

Slide 21
How can an offer be ended?

Revocation- The right to withdraw an offer before it is accepted

Time state in the offer- The offeror may state how and when the offer must
be accepted
Reasonable length of time- If a specific time is not set, it will end after a
reasonable length of time, which will depend on the circumstances
surrounding
Rejection- When an offeree clearly rejects the offer
Counteroffer- If the offeree changes the offerors terms in important ways
and sends it back to the offeror
Death or Insanity- When the person can no longer act in favor of
themselves the law takes over
Destruction of specific subject matter- When the material for which the
contract is state is destroyed the offer is off

Slide 22
Acceptance- occurs when a party to whom an offer has been made agrees to the
proposal
Slide 23
What is required of an acceptance?
Slide 24

Come from the person or persons to whom the offer was made
An offer made to one person cannot be accepted by anoth1er

Match the terms in the offer

Mirror image rule- requires that the acceptance must exactly match the
terms contained in the offer

Be communicated to the offeror

This must be more than a mental decision; it must be communicated to
the offeror

Slide 25
Bilateral Contracts
Require that the offeree accept by communicating the requested promise to
the offeror, until this is done there is no contract
Unilateral Contracts

Slide 26

When the offeror requires that the offeree indicate acceptance by performing
his or her obligations under the contract

Video- What are bilateral and unilateral contracts?

I believe this is the easiest way to understand Bilateral and unilateral
contracts so make sure
to pay attention.
Group Activity:
minutes

Allotted time:

20-30

Slide 27
Project Time!
Get with you shoulder partner

One person will be the Offeror and one will be the Offeree.

Develop a valid contract based off the 6 requirements of a contract.

Then check the validity of your contract with the 3 tests of an offer.

Be ready to present!!

Form your own contract that meets the criteria of a legal contract using the 6
requirements of a contract and the 3 tests of a contract.
They will be graded on completion and if the 6 requirements are met
Groups will share at the end of class.

Closure/Review of Content:
time: 15 minutes

Allotted

Students will share their contracts they have made with their partner to the class.
Each group will go up to the front of the room and share what the contract is
asking and the terms and conditions of their contract. Myself will ask questions if
clarification is needed or a part is left out. These contracts must be turned in at the
end of class to receive their daily grade.

Evaluation/assessment of student learning:

Allotted time: N/A
Students will present their group projects to the class to be graded based off the
knowledge and use of the 6 requirements of a contract. They will turn in their
group contracts at the end of class for a completion grade in their assisted
assignment section. A rubric will be written on the board showcasing the grade
break down of their project. The assignment will be a total of 10 points: 1 point for
their name, 1 point for their partners name, 1 point for the date, 1 point for the
title of their contract, 1 point for each of the 6 requirements of a contract.
Modifications for exceptional learners:

For those who cannot see the board well will have printed power point
presentations for easier review. My students who is legally blind and must have his
power points and any hand out sent to his email for review on a I pad will be sent
ahead of time. This electronic will be allowed for him during all assignments. I will
accommodate for him in any way possible whether that is increasing font or

providing alternative visuals. Any other accommodations that arise will be handle
properly and efficiently to better assist the learner.
References:
Arkansas Department of Education Frame Work Website:
http://ace.arkansas.gov/cte/informationForms/curriculumFrameworks/Documents/Framew
orks/Business/
YouTube: varies videos
Business Law Textbook
Materials and equipment needed for lesson:
Computer/projector
Handout of vocab
PowerPoint
Student computers
Microsoft word