Ch. 10 Flashcards
To be effective, an offer must be what 3 things?
- ) Be communicated to the offeree
- ) Manifest an intent to enter the contract
- ) Be sufficiently definite and certain
Offer
A definite undertaking or proposal made by one person to another indicating a willingness to enter into a contract
An offer must manifest WHAT to enter into a contract?
Intent; determined objectively from the words or conduct of the parties
Good Faith
Honesty in fact in the conduct or transaction concerned
Commercial Reasonableness
The business judgment of reasonable persons familiar with the customary practices of the type of transaction involved
Output Contract
An agreement of a buyer to purchase a seller’s entire output for a stated period
Requirements Contract
An agreement of a seller to supply a buyer with all his requirements for certain goods
What are the 7 ways an offer may be terminated?
- ) Lapse of time
- ) Revocation
- ) Rejection
- ) Counteroffer
- ) Death or Incompetency (of the offerer or offeree)
- ) Destruction of the subject matter
- ) Illegality
When can an offer be Revoked?
An offer may be canceled (or revoked) at any time PRIOR to its acceptance when the offeree RECEIVES notice of it being revoked
What 5 situations restrict the offeror’s power to revoke an offer?
- ) Option Contracts
- ) Firm Offers under the Code
- ) Statutory Irrevocability
- ) Irrevocable Offers of Unilateral Contracts
- ) Promissory Estoppel
Rejection
A manifestation by the oferee of his unwillingness to accept
Counteroffer
A counterproposal from the offeree to the offerer of a willingness to contract but on different terms/ conditions than the original offer
Conditional Acceptance
Type of counteroffer that claims to accept the offer, but only if the offerer assents to additional or different terms
Firm Offer
Written promise not to revoke an offer for a stated period of time
The ________ of an offer is essential to the formation of a contract.
Acceptance
