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14 Cards in this Set

  • Front
  • Back
Is there an offer?
An offer creates a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of the offered terms.
(3) Major Factors courts use to decide whether an offer has been made.
1. Evidence of a promise rather than preliminary negotiations.
2. Certainty of terms
3. Communication to Offeree
(4) Factors that there is evidence of a promise
1. Words Used
2. Intent of Offeror as interpreted by a reasonable person
3. Custom of industry or parties
4. Number of possible recipients of communication--advertisements seen as invitations for offers
How is a K capable of being specifically enforced or damages determined? (Certainty of terms)
1. Identification of Offeree (Note interpretation of reward)
2. Definiteness of Terms
a. Formula for compensation of executive recruiter based on the salary ofa hypothetical hiree is definite enough to enforce an agreement which included an advance payment based on that salary. (Bauman v. International Transport)
b. Real Estate- need to identify land & price
c. Employment- duration must be specified
Communication of Offeree
Offeree must have knowledge of offer.
Can offer be revoked? (Rule)
Although most contract offers can be revoked by the offeror at any time before acceptance by the offeree, there are exceptions.
Can offer be revoked?
Option Contract
Offeree gives consideration to offeror so that offer is irrevocable for a specified time.
Can offer be revoked?
Detrimental Reliance
Offeror reasonably contemplated reliance by offeree in acting on the offer before it is accepted.
Can offer be revoked?
Unilateral Contracts
Once offeree has begun performance, offer is irrevocable until offeree has a reasonable time to complete performance.
Did offer terminate? (Rule)
An offer can be terminated by the offeree and by the operation of law.
How offer can be terminated?
Offer can be terminated by:
1. Offeree
a. Rejection
(1) Express Rejection
(2) Counteroffer
b. Lapse of Time
2. By Operation of law
a. death or insanity
b. Destruction of subject matter
c. Illegality
Was offer accepted? (Rule)
Acceptance is a manifestation of assent by the offeree to the proposal made by the offeror.
Was offer accepted? (factors)
1. Offeree must accept.
2. Acceptance is unequivocal on all terms of the offer.
3. Acceptance usually must be communicated--modern view is communication by a reasonable means.
a. Mailbox Rule
b. Acceptance by unauthorized means often effective if actually received.
c. Sometimes silence is found to be acceptance
* When offeree accepts benefits silently
* When custom of parties not to require communication.
* When offeror indicates silence is acceptable and offeree intends to accept.
Exception to revocable offer- Firm Offer
UCC 2-205
Offer (1)by a merchant (one who professionally deals with good in question), (2)that is in a signed writing, (3) gives explicit assurance that the offer will be held open.