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20 Cards in this Set
- Front
- Back
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Offeree indicates “no”
Rejection by changes in terms—counteroffer |
Termination of an Offer by Rejection
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an offer also ends when the offeree does not full reject the offer but rejects some portion of the offer or modifies it before acceptance. this is called a -----
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counter offer
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in a counter offer the offeree becomes the --------- as the counter offer becomes the new offer.
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offeror
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Offeree’s positive response
Must be communicated to offeror Using proper means of acceptance Only offeree has power to accept |
Acceptance: Offeree’s Response
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Timing rule in contract acceptances that provides that acceptance is effective upon mailing if properly done
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The Mailbox Rule
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when offerors give a required means of acceptance
Mailbox rule applies If offeree does not use means stipulated, then counteroffer and/or rejection |
Acceptance by stipulated means
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occurs when offeree is free to use any method for communication of the acceptance.
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acceptance with no stipulated means
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if the offeree uses the same method of communication or a reasonable means under acceptance with no stipulated means, what applies?
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the mailbox rule
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if the offeree uses a slower or unreasonable method of communication under the acceptance with no stipulated means, then when is the acceptance effective?
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acceptance is not effective until it is received
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is what distinguishes gifts from contracts and is what each party - offeror and offeree-gives up under the contract; it is sometime called bargained for exchange.
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consideration
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Courts are not concerned with the adequacy of consideration, only the legal ----- of consideration ex-a countract is not unenforceable because a court feels you paid too little.
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sufficiency
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used as a substitute for consideration in those cases in which someone acts in reliance on a promise that is not supported by consideration.
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promissory estoppel
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Charitable subscriptions are enforceable even though detriment is one-sided
Reliance (promissory estoppel) provides element of detriment for contracts not yet begun |
Unique Consideration Issues
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controls what must be written
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Statute of Frauds (1677)
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Real property
Contracts that can not be performed in one year Contracts to pay the debt of another UCC-contracts for sale of goods for $500 or more |
are contracts that are required to be in writing
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what is an exception to the statute of frauds?
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if the parties perform the oral contract.
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t/f the form of writing under the statute of frauds is not formal, it can be a written agreement pieced together from memos and letters.
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True
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the prohibition on extrinsic evidence for fully integrated contracts is called the ----- ------- rule and is a means for stopping ongoing contradictions to contracts that have been entered into and finalized.
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parol evidence
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Contract reduced to its final and unambiguous form cannot be contradicted with extrinsic evidence
Exceptions include evidence on fraud, misrepresentations, and ambiguities |
the effect of a written contact with parol evidence
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what are the three elements of a contract?
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offer, acceptance, and consideration
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