Contracts 1

Front 1

Offer

Back 1

a manifestation of willingness to enter into a bargain so made that another person understanding that their assent to that bargain is invited and will conclude it.

Front 2

Mirror-Image Rule

Back 2

an acceptance must be coextensive with the offer and must not introduce additional terms or conditions.

Front 3

Contract

Back 3

a promise or set of promises between parties that can be enforced by law; it consist of an offer, acceptance, and consideration(s).

Front 4

Mutual Assent

Back 4

by the words or actions of the participants there manifest an intention to agree to be bound by a contract, as judged by a reasonable standard.

Front 5

Acceptance

Back 5

the manifestation of assent to the terms thereof, made by the offeree in a manner invited or required by the offer; 2 forms: a promise or performance of specific action

Front 6

Manifestation

Back 6

is an event, action, or object that clearly shows or embodies "something."

Front 7

Contract Law Policies

Back 7

1. Equitable- must be fair
2. Consistent- must apply to all
3. Predictable- should be certain so parties can act accordingly
4. Freedom of Contract- reflect the free market

Front 8

Offeror is "King"

Back 8

an offeror has complete control over an offer and may condition acceptance to the terms of the offer.

Front 9

Objective Theory

Back 9

the reasonable impression created in the mind of the offeree by the words used and the conduct engaged in by the offeror.

Front 10

Objective Theory of Assent

Back 10

Must answer in the affirmative:
1. Would a reasonable person understand the offeror's intent to be bound?
2. Did the offeree in fact so believe?

Front 11

Option

Back 11

the offeree that desires additional (specified) time to consider may enter into an ancillary promise with offeror, must be supported by separate consideration.

Front 12

Mailbox Rule

Back 12

1. Acceptance is effective at the time of dispatch to the offeror.
2. Revocation is effective upon receipt by offeree.

Front 13

Rejection

Back 13

Offeree responds in the negative:
1. Direct- affirmative statement expressly refusing the offer.
2. Indirect- implied by evidence of a counteroffer or conditioned acceptance.

Front 14

Lapse

Back 14

termination of an offer due to lack of action within a specified or reasonable amount of time.

Front 15

Death/Incompetence

Back 15

if either party dies (or is found legally incompetent) then the offer also dies.
*exception: contract with an "option" is valid for the duration of said option.

Front 16

Revocation

Back 16

Offeror may revoke an offer up to anytime prior to the offeree's acceptance.
1. Direct- affirmative statement expressly withdrawing the offer.
2. Indirect- offeree receives notice, by 3rd party, that the offer has been accepted by another.

Front 17

Unilateral Contract

Back 17

offeror is bargaining for [performance of] a specific act; no promise by offeree will be regarded as acceptance.

Front 18

Bilateral Contract

Back 18

a contract in which there are mutual promises between the parties of the contract; each party is a promisor and promisee.

Front 19

Acceptance by Promise

Back 19

acceptance is given at the time of request, or reasonably after; notice of acceptance is always essential to form the contract.

Front 20

Conditional Acceptance

Back 20

similar to a counteroffer, but it keeps the original terms and mandates the addition of a term(s).

Front 21

Counteroffer

Back 21

an implied rejection of the original offer and a new offer over which the power of acceptance is given to the original offeror.

Front 22

Imperfect Acceptance

Back 22

An implied rejection that either offers a new deal, a conditional deal, or accepts with a proposal.

Front 23

Acceptance by Part Performance

Back 23

a conditional "option" contract is created when the offeree begins the invited performance, with the condition being the full performance by the offeree.

Front 24

Acceptance by Silence

Back 24

where a relation between parties is as such that the offeror is justified in expecting a reply, or the offeree is under duty to reply, the latter's silence will be regarded as acceptance.

Front 25

Acceptance by Performance

Back 25

acceptance is given at the time of completion of the specific act required; acceptance need not precede performance.

Front 26

Proposed Addition

Back 26

an acceptance with a requested term that may be rejected without destroying the bargain.

Front 27

Breach of Contract

Back 27

when a party does not perform on their contractual promise; 3 Elements:
1. the existence of a contract
2. Breach action in violation of the contract
3. Damages resultant of the breach

Front 28

Equitable Estopple

Back 28

when one acts or represents intentionally, or through negligence, induces another to believe certain facts to exist, and such other rightfully acts on the belief so induced in such a matter that if the former is permitted to deny the existence of the facts it will prejudice the latter.
*"truth must have been unknown" to the party when he acted toward his detriment in faith of another.