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16 Cards in this Set
- Front
- Back
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Mutual Assent
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the parties to a contract must manifest by words or conduct that they have agreed to enter into a contract
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Consideration
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each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange
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Legality of Object
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the purpose of a contract must not be criminal, tortious, or otherwise against public policy
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Capacity
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the parties to a contract must have contractual capacity
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ESSENTIALS OF AN OFFER
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Communication offeree must have knowledge of the offer and the offer must be made by the offeror or her authorized agent to the offeree
Intent determined by an objective standard of what a reasonable offeree would have believed Definiteness offer’s terms must be clear enough to provide a court with a basis for giving an appropriate remedy |
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DURATION OF OFFERS
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Lapse of Time offer remains open for the time period specified or, if no time is stated, for a reasonable period of time
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Revocation generally, an offer may be terminated at any time before it is accepted, subject to the following exceptions(5)
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• Option Contracts contract that binds offeror to keep an offer open for a specified time
• Firm Offer a merchant’s irrevocable offer to sell or buy goods in a signed writing that ensures that the offwill not be terminated for up to three months • Statutory Irrevocability offer made irrevocable by statute • Irrevocable Offer of Unilateral Contracts a unilateral offer may not be revoked for a reasonable time afterperformance is begun • Promissory Estoppel noncontractual promise that binds the promisor because she should reasonably expect that the promise will induce the promisee (offeree) to take action in reliance on it |
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Rejection
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refusal to accept an offer terminates the power of acceptance
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Counteroffer
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counterproposal to an offer that generally terminates the original offer
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Death or Incompetency
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of either the offeror or the offeree terminates the offer
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Destruction of Subject Matter
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of an offer terminates the offer
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Subsequent Illegality
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of the purpose or subject matter of the offer terminates the offer
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Acceptance of Offer
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Definition positive and unequivocal expression of a willingness to enter into a contract on the terms of the offer
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Mirror Image Rule
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except as modified by the Code, an acceptance cannot deviate from the terms of the offer
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COMMUNICATION OF ACCEPTANCE
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General Rule acceptance effective upon dispatch unless the offer specifically provides otherwise or the offeruses an unauthorized means of communication
Silence as Acceptance generally does not indicate acceptance of the offer |
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Effective Moment generally upon dispatch
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• Stipulated Provisions in the Offer the communication of acceptance must conform to the specifications of the offer
• Authorized Means the Restatement and the Code provide that, unless the offer provides otherwise, acceptance is authorized to be in any reasonable manner • Unauthorized Means acceptance effective when received, provided that it is received within the time with which the authorized means would have arrived • Acceptance Following a Prior Rejection first communication received by the offeror is effective |
