2. Agreement - Offer and Acceptance Flashcards
What is required for a communication to be an offer?
It must create a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of all material terms contained in the offer
An expression of what is required for a communication to be an offer?
An expression of a promise, undertaking, or commitment to enter into a contract
What is required of the essential terms of an offer?
The essential terms must be definite and certain, and not too vague, uncertain, or incomplete
What is the basic inquiry required to determine if an offer contains definite and certain terms?
Whether enough of the essential terms have been provided so that a contract including them would be capable of being enforced
Does an offeree need to have knowledge of an offer?
Yes
How does an offeree acquire knowledge of an offer?
The offer must be communicated to them
Is a statement made in response to a request for information an offer?
No
What is a unilateral contract?
A contract which arises when an offeror promises to do something if the offeree does something in return and the offeree actually does this thing
What is the effect of termination of an unaccepted offer?
It cannot be accepted
What is a revocation?
A retraction of an offer by the offeror
How is an offer revoked directly?
By directly communicating the revocation to the offeree before acceptance
How is an offer revoked indirectly?
If the offeree receives:
Correct information
From a reliable source
Of acts of the offeror which would indicate to a reasonable person that the offeror no longer wishes to make the offer
What is required for revocation to be effective?
It must be received by the offeree
What are two limitations on an offeror’s power to revoke?
Collateral contract
Beginning performance under an offer for a unilateral contract
Why is a unilateral offer irrevocable once performance has begun?
