chap 10 Flashcards
What is objective theory of contracts?
A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
What is an agreement?
The manifestation by two or more persons of the substance of a contract.
What is implied term?
A term a contract that can reasonably be supplied by the courts.
What is an advertisement?
An invitation to make an offer or an actual offer.
What is a reward?
An award given for performance of some service or attainment. To collect a reward, the offeree must have knowledge of the reward offer prior to completing the requested at and perform the requested act.
What is 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 auction is an auction with reserve.
What is an 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.
What is revocation?
Withdrawal of an offer by the offeror that terminates the offer.
What is a rejection?
Express words or conduct by the offeree to reject an offer. Rejection terminates the offer.
What is a counteroffer?
A response by an offeree that contains terms and conditions different from or in addition to those of the offer. A counteroffer terminates the previous offer.
What is supervening illegality?
The enactment of a statute, regulation, or court decision that makes the object of an offer illegal. This action terminates the offer.
What is a lapse of time?
A stated time period after which an offer terminates. If no time is stated, an offer terminates after a reasonable time.
What is an 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”
What is a mirror image rule?
A rule which stats that for an acceptance to exist, the offeree must accept the terms as stated in the offer.
What is an acceptance-upon-dispatch rule (mailbox rule)?
A rule which states that an acceptance is effective when it is dispatched , even if it is lost in transmission.
