CH 10 Flashcards
Agreement
required to form a contract, both parties must agree on terms in contract for contract to be valid
agreement terms
offer and acceptance
offer
promise to perform or refrain from performing a specific act in the future (offerees acceptance creates binding contract)
3 parts to an offer:
objective intent, communication, and terms of offer must be reasonably certain or definite
objective intent
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
Lucy V Zehmer
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
expression of an opinon
not an offer i.e. saying your hand will probably heal three days after surgery, not a definite statement just a probability
statement of future intent
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
preliminary negotiations
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
advertisements and categlouses
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
agreement to agree
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
preliminary agreement
binding contract if all parties agree to terms or at the very least to the large terms
basic technology corp v amazon inc
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
2nd req of offer (Definitvness)
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)
Communication
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
revocation
offeror can revoke offer before offeree accepts offer
inquires about an offer
inquiry does not equal rejection just an inquiry
Counteroffer
rejection of old offer and stimulation of new offer
mirror image rule
if the acceptance changes and the offeree adds to it is then considered a counteroffer- mirror is not changed in any way
termination by operation of law
lapse of time (time specified in the offer has passed), destruction or death (object destroyed or one party dies) illegal (automatically terminates the offer)
option contract
irrevocable offer- can’t revoke offer for a specific period of time i.e. real estate
unequivocal acceptance
the mirror image rule (nothing can change, full acceptance)
when can silence equal acceptance?
oferee takes benefit even when he could of rejected it and knew it was offered with compensation
Powerhouse Custom Homes v 84 lumber co
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
