Business Law- Chapter 10 Flashcards
Agreement
The manifestation by tow or more persons of the substance of a contract.
Offer
“The manifestation of willingness to enter into a bargin, so made as to justify another person in understading that his assent to that bargin is invited and will conclude it”
Objective Theory of Contracts
A theory that says the intent to contract is judged by the reasonable person standard and not by the subjuctive intent of the parties.
Implied Term
A term in a contract that can reasonably be supplied by the courts.
Advertisement
An invitation to make an offer, or an actual offer.
Reward
An award given for performance of some service or attainment. To collect a reward, the offeree must 1. have knowledge of the reward offer prior to completing the requested act and 2. perform the requested act.
Auction with Reserve
An auction in which the seller retains the right to refuse the highest bid and withdraw the goods from sale. Unless expressly stated otherwise, an aution is an auction with reserve.
Auction without Reserve
An auction in which the seller expressly gives up his or her right to withdraw the goods from sale and must accept the highest bid.
Revocation
Withdrawl of an offer by the offeror which terminates the offer.
Rejection
Express words or conduct by the offeree that rejects an offer.
Counteroffer
A response by an offeree that contains terms and conditions different from or in addition to those of the offer.
Supervening Illegality
The enactment of a statute, regulation, or court decision that makes the object of an offer illegal.
Lapse of Time
A state time period after which an offer terminates. If no time is stated, an offer terminates after a reasonable time.
Acceptance
“A manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts.
Mirror Image Rule
A rule which states that for an acceptance to exist, the offeree must accept the terms as stated in the offer.
