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28 Cards in this Set
- Front
- Back
Offer
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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.
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Mirror-Image Rule
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an acceptance must be coextensive with the offer and must not introduce additional terms or conditions.
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Contract
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a promise or set of promises between parties that can be enforced by law; it consist of an offer, acceptance, and consideration(s).
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Mutual Assent
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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.
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Acceptance
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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
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Manifestation
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is an event, action, or object that clearly shows or embodies "something."
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Contract Law Policies
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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 |
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Offeror is "King"
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an offeror has complete control over an offer and may condition acceptance to the terms of the offer.
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Objective Theory
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the reasonable impression created in the mind of the offeree by the words used and the conduct engaged in by the offeror.
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Objective Theory of Assent
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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? |
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Option
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the offeree that desires additional (specified) time to consider may enter into an ancillary promise with offeror, must be supported by separate consideration.
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Mailbox Rule
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1. Acceptance is effective at the time of dispatch to the offeror.
2. Revocation is effective upon receipt by offeree. |
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Rejection
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Offeree responds in the negative:
1. Direct- affirmative statement expressly refusing the offer. 2. Indirect- implied by evidence of a counteroffer or conditioned acceptance. |
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Lapse
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termination of an offer due to lack of action within a specified or reasonable amount of time.
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Death/Incompetence
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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. |
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Revocation
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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. |
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Unilateral Contract
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offeror is bargaining for [performance of] a specific act; no promise by offeree will be regarded as acceptance.
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Bilateral Contract
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a contract in which there are mutual promises between the parties of the contract; each party is a promisor and promisee.
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Acceptance by Promise
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acceptance is given at the time of request, or reasonably after; notice of acceptance is always essential to form the contract.
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Conditional Acceptance
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similar to a counteroffer, but it keeps the original terms and mandates the addition of a term(s).
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Counteroffer
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an implied rejection of the original offer and a new offer over which the power of acceptance is given to the original offeror.
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Imperfect Acceptance
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An implied rejection that either offers a new deal, a conditional deal, or accepts with a proposal.
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Acceptance by Part Performance
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a conditional "option" contract is created when the offeree begins the invited performance, with the condition being the full performance by the offeree.
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Acceptance by Silence
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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.
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Acceptance by Performance
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acceptance is given at the time of completion of the specific act required; acceptance need not precede performance.
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Proposed Addition
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an acceptance with a requested term that may be rejected without destroying the bargain.
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Breach of Contract
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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 |
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Equitable Estopple
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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. |