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21 Cards in this Set

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Define: OFFER
(1) An offer is a proposal by one party to the other manifesting a willingness to enter into a bargain and made in such a way (by words or conduct) that the other person is justified in believing that this assent (ie acceptance) to that bargain is invited and, if given, will create a binding contract between the parties.
What are the 3 requirements for a valid offer?
(1) Manifestation of present contractual intent—not a mere invitation to negotiate. (2) Certainty and definiteness of terms (3) Communication to the offeree—offer must be communicated to the offeree.
What is the TEST for requirement of manifestation of present contractual intent?
(1) The words used—that the strongly suggest that an offer has been made. (2) Surrounding circumstances—it may sound like an offer but actually be made in jest. (3) To whom made—To an individual or to everyone? (4) Definiteness and certainty of terms—the more definite the terms the more likely an offer has been made (5) Written contract contemplated—There is a JX split since some courts think that there is a presumption that there is no contract until signed while others do not.
Does an invitation to “act quickly” constitute an offer? [advice to act quickly – longergan v. scolnick]
(1) No. (2) D never made an offer, ; he simply was trying to see if P was interested.
Can an ad be an offer? [Advertisement—lefkowitz v. great Minneapolis surplus store]
(1) Yes (2) Normally, ads are not offers. But here the offer was Clear, Definite, and explicit and left nothing open for negotiation.
Can an offer be effectively accepted if the offeree’s power of acceptance has been terminated by an act of the parties or by operation of law?
(1) No.
What are the FIVE basic situations in which an offer may terminate by operation of law?
(1) By the lapse of time [time runs from the date of actual receipt by the offeree. If no time period specified, the offer lapses after a reasonable period of time. (2) By death or destruction of the subject matter of the offer (3) By death or insanity of the offeror or the offeree (4) By the intervening illegality of the proposed contract, as when a law is passed making thee contract rate of interest illegal. (5) By the addition or modification of terms in a purported acceptance, thus making a counteroffer.
Does a reasonable time expiration of an offer depend on the circumstances under which the offer was made? [time expiration—akers v. JB sedbery, inc] the designers who were told that their thing was rejected.
(1) Yes (2) Ordinarily, an offer made during a face to face conversation terminates if not accepted during the conversation. (3) Rejection of an offer occurs when the offeror justifiably infers that the offeree has rejected the offer or has decided not to consider it any longer.
Is an acceptance binding if it is contingent on conditions specified by the offeree? [Conditional acceptance as counteroffer—Ardente v. Horan.]
(1) No (2) An acceptance must be definite and unequivocal to be effective; the offeror is entitled to certain knowledge of acceptance or rejection.
If an acceptance includes a statement relieving the seller from an obligation it would otherwise have, does the absolution constitute an additional term that invalidates the acceptance? [Elimination of obligation is not a condition—Rhode Island Department of Transportation v. Providence Worcester R.R.]
(1) No (2) P merely relieved D of an obligation and expense it would have had in selling the property to Promet. An offeree may absolve the offeror of a material obligation without invalidating the acceptance.
What does a revocation do?
(1) A revocation (ie a retraction of the offer by the offeror) normally terminate the offeree’s power of acceptance, unless the offer has already been accepted. The offeror’s words or conduct must be such that a reasonable person would interpret them as a termination of the offer.
When is a Revocation effective?
(1) In most jurisdictions, a revocation is effective only when received by the offereee
xv) How must a revocation be communicated?
(1) A revocation normally must be communicated by the offereror to the offeree
When may Firm offers (which by their terms are to remain open until a fixed date) be properly revoked?
(1) Before the expiration of the term.
What is the modern rule concerning when a unilateral contract may NOT be revoked?
(1) A unilateral contract may not be revoked once performance has begun.
IF an offeree learns from a third person that an offer has been given to another person (or accepted by another person), can the original offeree still accept the offer? [communication from a third party—dickinson v. dodds]
(1) No (2) D could revoke the offer prior to acceptance
What does an auctioneer do when she puts the goods up for sale? Is it a unilateral contract or a call for offers?
(1) A call for offers. (2) She can remove the goods for sale at any time.
Is a bid irrevocable at an auction? [Bid may be retracted at action with reserve—Payne v. Cave]
(1) No (2) The bid is an offer, not an acceptance. (3) Auctions “without reserve” make the bids into an acceptance.
May an offeror revoke an offer at any time before the other party accepts by performing, so long as there is no consideration for the promise to keep the offer open? [Revocation prior to acceptance by performance—Ragosta v. Wilder]
(1) Yes (2) D’s ofer could be accepted by performace prior to the deadline. (3) An offer that invites an offeree to accept by rendering a performance creates an option contract when the offeree tenders or begins the invited performance or tenders a beginning of it.
What do some courts think if it was reasonably forseeable to the offeror that the offeree would rely on the offer?
(1) Such reliance would constitute a substitute for consideration and it is sufficient to employ the offeror subsidiary promise not to revoke the offer for a reasonable length of time.
If a general contractor relied on a subcontractor’s bid and is unable to find another subcontractor for the same amount of money, does this reliance act as a substitute for consideration? [Reliance on subcontractors bid—Drennan v. Star paving Co.]
(1) Yes (2) P’s reliance was forseeable by D and P relied to its detriment.