CH 10

Question 1

Agreement

Answer 1

required to form a contract, both parties must agree on terms in contract for contract to be valid

Question 2

agreement terms

Answer 2

offer and acceptance

Question 3

offer

Answer 3

promise to perform or refrain from performing a specific act in the future (offerees acceptance creates binding contract)

Question 4

3 parts to an offer:

Answer 4

objective intent, communication, and terms of offer must be reasonably certain or definite

Question 5

objective intent

Answer 5

what a reasonable person in the offerees position would conclude the offerors words and actions meant i.e. julio getting mad at his car and saying he will sell it for 500 u give him 500— not onnjective intent because he was angry

Question 6

Lucy V Zehmer

Answer 6

Despite the claim of intoxication, the agreementt met the serious intent requirement, making the contract binding. lucy won and they had to keep the contract in tact

Question 7

expression of an opinon

Answer 7

not an offer i.e. saying your hand will probably heal three days after surgery, not a definite statement just a probability

Question 8

statement of future intent

Answer 8

intention to do something in the future is not an offer i.e. saying you plan to sell your stock; thinking about selling his stock not promising to sell it

Question 9

preliminary negotiations

Answer 9

request to negoziate is not an offer i.e. i wouldn’t sell my car for less than 8,000; does not indicate intention to enter contract

Question 10

advertisements and categlouses

Answer 10

not an offer but an invitation (means they don’t have to accept) i.e. sending in a submission to a news website and news website chooses to not accept it is not a breach of contract since use an invitation

Question 11

agreement to agree

Answer 11

agree to terms of a contract at a future date is possibly an enforcable agreement (parties intent) i.e. customer almost drowns on six flag ride so six flag sues manufacture and wins because of faxed document with ride intent to be bound

Question 12

preliminary agreement

Answer 12

binding contract if all parties agree to terms or at the very least to the large terms

Question 13

basic technology corp v amazon inc

Answer 13

The agreement that amazon entered into with basis via email was constituted as a binding contract because amazon intended too be bound by the terms of the e-mail exchanges

Question 14

2nd req of offer (Definitvness)

Answer 14

parties identification, id of subject matter of contract, consideration to be paid, or time of payment i.e. selling a specific number of wiis (1-25)

Question 15

Communication

Answer 15

offer communicated to offeree i.e. not knowing of reward means that you do not get reward if u find out about reward afterwards; communication gives offeree chance to make it a contract

Question 16

revocation

Answer 16

offeror can revoke offer before offeree accepts offer

Question 17

inquires about an offer

Answer 17

inquiry does not equal rejection just an inquiry

Question 18

Counteroffer

Answer 18

rejection of old offer and stimulation of new offer

Question 19

mirror image rule

Answer 19

if the acceptance changes and the offeree adds to it is then considered a counteroffer- mirror is not changed in any way

Question 20

termination by operation of law

Answer 20

lapse of time (time specified in the offer has passed), destruction or death (object destroyed or one party dies) illegal (automatically terminates the offer)

Question 21

option contract

Answer 21

irrevocable offer- can’t revoke offer for a specific period of time i.e. real estate

Question 22

unequivocal acceptance

Answer 22

the mirror image rule (nothing can change, full acceptance)

Question 23

when can silence equal acceptance?

Answer 23

oferee takes benefit even when he could of rejected it and knew it was offered with compensation

Question 24

Powerhouse Custom Homes v 84 lumber co

Answer 24

84 lumber did not unequivocally accept the offer by its failure to object to powerhouses proposal to settle the debt for less than was owed. (lumber 84 did not communicate its acceptance) in favor of 84 lumber co

Question 25

acceptance in a bilateral contract must be done by when?

Answer 25

before offer is terminated

Question 26

mailbox rule

Answer 26

acceptance becomes valid once it dispatches

Question 27

substitute mode of acceptance

Answer 27

the offer can still be in effect if a substitute method serves same purpose as original method of transportation i.e. using UPS over FEdEX for overnight delivery

Question 28

e-contract disputes

Answer 28

more over did parties agree to these terms i.e. licensing

Question 29

online contract include following provisions:

Answer 29

accept terms, payment, return policy, and disclaimer, limitations on remedies, private policy and dispute resolutions

Question 30

e-signatures online

Answer 30

ruled in favor of the courts because the students had no proof they hand wronged them even though they had

Question 31

click on agreement

Answer 31

i.e. clicking i agree online

Question 32

shrink-wrap agreement

Answer 32

agreement whose terms are expressed inside a box it is packaged in i.e.between manufacture and user of product, saying u can use product for 30 *somtimes not enforced by courts because buyer did not consent to them

Question 33

browse-wrap terms

Answer 33

when buyer downloads product and does not specifically agree to terms but is bound because of said download

Question 34

electronic signature

Answer 34

valid online signature excludes divorce decrees evictions and foreclosures

Question 35

partnering agreement

Answer 35

seller and buyer who frequent business can set up terms and conditions ahead of time this way court can refer to agreement if dispute arises

Question 36

UETA

Answer 36

gives same effect to online signatures as it would paper ones *only applies when each party agrees to conduct transactions by electronic means