What does “Formation of Contracts” mean, as related to Executive Session in the Davis Stirling Act – Brown Act?
“formation of contracts,” is defined as —
The requisites for formation of a legal contract are an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, mutuality of agreement, consideration, mutuality of obligation, and, if required under the Statute of Frauds, a writing .the free dictionary.com Last Accessed 5/27/2009 Civil Code 1550 (1) (2)
Property Negotiations Only to discuss, with an agency’s identified bargaining agent, price or payment terms. The parcel, negotiators and the prospective seller or purchaser must be identified on the agenda. (§54956.8) Final price and payment terms must be disclosed when the actual lease or contract is discussed for approval. (§ 54957.1(a)) Learn more Brown Act Pocket Guide
The requisites for formation of a legal contract are
an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, mutuality of agreement, consideration, mutuality of obligation, and, if required under the Statute of Frauds, a writing legal-dictionary.thefreedictionary.com/
AB 1264 2005 Leslie would have eliminated formation of contracts as an excuse to go into executive session
1363.05. (a) This section shall be known and may be cited as the Common Interest Development Open Meeting Act.
An offer is defined by Treitel as “an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed”, the “offeree”. Wikipedia.org/
The Essentials For Formation Of Contract
The requirements for formation of contract are agreement and consideration. There is sometimes said to be a third element, namely, intention to create legal relations. But this third element is rarely a problem and it is true to say that, if it is a separate element, it goes without saying in the vast majority of cases.
Agreement entails the transformation of negotiations into a settled bargain or deal. The negotiating process is obviously not contract and the law needs to be able to determine when that process has ceased and the parties have reached finality in their commercial arrangement. The traditional approach to answering the question: have the parties reached agreement? is to apply the rules of offer and acceptance. When a properly constituted offer has been made by one party and accepted by the other, then there is agreement at the moment of acceptance or, more precisely, at the moment of communication of acceptance.
This apparently simple process raises a number of questions which we have to look at, such as: Was an offer made at all? Who makes an offer in certain types of transactions, for example, in auctions or tenders? Is a price list an offer? Is an advertisement an offer? Then it is also necessary to answer further questions about the act of acceptance, such as: does acceptance have to be communicated? Can you accept by silence? Can you accept by just getting on with the commercial task? and so forth.
We have already seen that consideration involves a notion of exchange. There are rules about what constitutes an exchange and what might be exchanged in order to amount to a good consideration. We will look at these rules after we have examined the requirements of offer and acceptance. The relationship between the rules of offer and acceptance on the one hand and the rules of consideration on the other hand is that the exchange which constitutes an acceptance of an offer – in effect an exchange of promises is brought about by acceptance – is at the same time the necessary exchange which constitutes the consideration. All this will become clearer when we examine the doctrine of consideration in detail.
The Process Of Reaching Agreement
Resources & Links
In common law systems, the five key requirements for the creation of a contract are: 1. offer and acceptance (agreement) 2. consideration 3. an intention to create legal relations 4. legal capacity 5. formalities
My association let bids for re-striping the parking lot.
We got 3 bids. the board discussed the merits of the three bidders and elected to take one of them.
Is this a matter relating to the formation of contracts with third party?
I’m not an attorney so here’s a link to a website done by an attorney on this matter. davis-stirling.com
In my own HOA the Judge “ruled” that the initial bid must be open to all members, but after that the Board could go into executive session. Unfortunately, the ruling wasn’t in writing, so the HOA just continues to make up rules as they go along.
Personally, I can’t understand why someone who gets elected to the Board all of a sudden thinks they are expert on everything and don’t need to listen to any input from the members, who pay mortgages and HOA fees. Plus, the members are the ones who will be using the product or service and may well be on the Board next year.