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29 Cards in this Set
- Front
- Back
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Agreement
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The manifestation by two or more persons of the substance of a contract
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Offeror
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The party who makes an offer
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Offeree
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The party to whom an offer has been made
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Offer
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"the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it."
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Three conditions of an offer
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1. the offeror must objectively intend to be bound by the offer.
2. The terms of the offer must be definite or reasonably certain. 3. The offer must be communicated to the offeree. |
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Objective theory of contracts
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A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
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Implied term
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A term in a contract that can reasonably be supplied by the courts.
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Advertisement
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An invitation to make an offer or an actual offer.
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Reward
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An award given for performance of some service or attainment. To collect a reward, the offeree must 1. have knowledge of the reward offer prior to completing the requested act, and 2. perform the required act.
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Auction with reserve.
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An auction in which the seller retains the right to refuse the highest bid and withdraw the goods from sale. Unless expressly stated otherwise; an auctioon is an auction with erserve.
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Auction without reserve
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An auction in which the seller expressly gives up his or her right to withdraw the goods from sale and must accept the highest bid.
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Revocation
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Withdrawal of an offer by the offeror which terminates the offer.
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Rejection
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Express words or conduct by the offeree that rejects an offfer. Rejection terminates the offer.
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Counteroffer
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A response by an offeree that contains terms and conditions different from or in addition to those of the offer. A counteroffer terminates the previous offer.
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Supervening illegality
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The enactment of a statute, regulation, or court decision that makes the object of an offer illegal. This action terminates the offer.
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Things that can terminate the offer.
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Destruction of the subject matter.
Death or incompetency of one of the parties. Supervening illegality. Lapse of time |
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Lapse of time
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A stated time period after which an offer terminates. If no time is stated, an offer terminates after a reasonable time.
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Acceptance
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"A manifestation of assent by the offeree to the terms of the offer in a manner invited or required b the offer as measured by the objective theory of contracts"
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Mirror image rule
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A rule which states that for an acceptance to exist, the offeree must accept the terms as stated in the offer.
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Unequivocal acceptance
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The offeree must accept the terms as stated in the offer.
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Mailbox rule
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A rule that states that an acceptance is effective when it is dispatched, even if it is lost in transmission. Also known as the acceptance upon dispatch rule.
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Proper dispatch
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The proper addressing, packaging, and posting of an acceptance
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Express authoration
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A stipulation in an offer that says the acceptance must be by a specified means of communication.
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Implied authorization
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A mode of acceptance that is implied from what is customary in similar transactions, usage of trade, or prior dealings between the parties.
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When does acceptance take place according to the mailbox rule?
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When the offer permits acceptance by mail, acceptance is effective, when you send it the contract is made, however for revocation NOT effective until actually received by offeree.
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Option contract
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Offeror agrees to keep an offer open for a certain amount of time in regurn for consideration.
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Detrimental reliance
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If offeree has changed his position because of justifiable reliance on the offer, court will find that the contract is irrevocable.
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Four components of offer.
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1. manifestation--offer must be communicated.
2. promise (usually conditional) 3. Invitation to accept. 4. Conclusiveness. |
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When does silence indicate acceptance?
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1. If oferee indicates that it means acceptance
2. The offeree signed an agreement indicating continuing acceptance of devlivery until further notice. 3. prior dealings indicate silence means acceptance 4. Oferee takes benefit even though she has the opportunity to do so and doesn't and realizes other party expects to be compensated. |
