Chapter 10 Flashcards
voluntary exchange of promises between two or more legally competent persons to do or to refrain from doing an act
agreement
An assent by the parties—a “meeting of the minds”—to perform current or future contractual duties
mutual assent
agreement that meets certain additional legal criteria and is enforceable in a court of law
contract
The party who makes an offer.
offeror
The party to whom an offer has been made
offeree
The manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it
offer
3 required elements in order for an offer to be effective
- The offeror must objectively intend to be bound by the offer.
- The terms of the offer must be definite or reasonably certain.
- The offer must be communicated to the offeree.
4 terms an offer must contain
(1) identification of the parties, (2) identification of the subject matter and quantity, (3) consideration to be paid, and (4) time of performance
Terms in offers and contracts that expressly identify the parties, the subject matter of the offer or contract, the consideration to be paid by the parties, and the time of performance, as well as other terms of the offer and contract
express terms
A term in a contract that can reasonably be supplied by the courts
implied term
An invitation to make an offer or an actual offer
advertisement
2 requirements to be entitled to collect a reward
(1) have knowledge of the reward offer prior to completing the requested act and (2) perform the requested act
An award given for performance of some service or attainment
reward
A sale in which a seller of goods offers goods for sale through an auctioneer.
auction
An auction in which the seller retains the right to refuse the highest bid and withdraw the goods from sale.
auction with reserve
Unless expressly stated otherwise, an auction is an ___________.
auction with reserve
An auction in which the seller expressly gives up the right to withdraw the goods from sale and must accept the highest bid.
auction without reserve
The _________ of an offer by an act of the parties consists of situations in which one party takes an action that indicates that he or she is not interested in forming a contract under the terms of the offer.
termination
Withdrawal of an offer by the offeror that terminates the offer
revocation of an offer
Express words or conduct by the offeree to reject an offer. This terminates the offer.
rejection of an offer.
A response by an offeree that contains terms and conditions different from or in addition to those of the offer. This terminates the previous offer
counteroffer
A contract that is created when an offeree pays an offeror compensation to keep an offer open for an agreed-upon period of time. This prevents the offeror from revoking his or her offer during the option period
option contract
The enactment of a statute, regulation, or court decision that makes the object of an offer illegal. This action terminates the offer.
supervening illegality
A stated time period after which an offer terminates. If no time is stated, an offer terminates after a reasonable time
lapse of time
The subject matter of an offer is destroyed prior to acceptance through no fault of either party.
destruction of the subject matter
Prior to acceptance of an offer, either the offeror or the offeree dies or becomes incompetent.
death or incompetency
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
acceptance
An acceptance of an offer that is clear, unambiguous, and has only one possible meaning
unequivocal acceptance
An offeree’s acceptance must be an ________ acceptance.
unequivocal
An _________ response by the offeree does not create a contract.
equivocal
An offeree’s response to an offer that is not clear, is not unambiguous, or has more than one possible meaning
equivocal response
A rule stating that, for an acceptance to exist, the offeree must accept the terms as stated in the offer
mirror image rule
A rule stating that an acceptance is effective when it is dispatched, even if it is lost in transmission.
acceptance-upon-dispatch rule
The proper addressing, packaging, and posting of an acceptance
proper dispatch
A rule that states that an offeree must accept an offer by means expressly specified in the offer, or if there is no such requirement, then by any means customary in similar transactions, usage of trade, or prior dealings between the parties.
authorized means of communication
A mode of acceptance that is implied from what is customary in similar transactions, usage of trade, or prior dealings between the parties.
implied authorization
A stipulation in an offer that says the acceptance must be by a specified means of communication.
express authorization
