BUSINESS LAW 2 Flashcards
Agreement
offer and acceptance; parties must show mutual voluntary assent to terms of contract (freedom to say yes or no)
Requirements of an offer
- offeror’s serious intent
- definiteness of terms
- communication to offeree
Where may intent be lacking?
expression of opinion; statements made in jest, frustration, or anger; statements of future intent
Special offer situations
advertisements and auctions (NOT offers)
Definiteness of terms
identification of parties; object or subject matter of the contract; consideration to be paid; time of payment, delivery, or performance
Termination of offer
acceptance; an offer may be terminated prior to acceptance
Who may terminate an offer prior to acceptance?
action of the parties or by operation of law
Termination by action of parties
revocation, rejection, counteroffer
Revocation of the offer by the offeror
offer can be withdrawn any time before offeree accepts the offer
Rejection of the offer by the offeree
rejection by the offeree (expressed or implied) terminates the offer; effective only when it is received by the offeror or offeror’s agent
Counteroffer by the offeree
rejection of original offer and the simultaneous making of a new offer
Mirror Image Rule
at common law, any change in terms automatically terminates the offer and substitutes the counteroffer
