Chapter 10: Mutual Assent Flashcards
Offer
A proposal indicating a willingness to enter into a contract.
Offeror
Person making the offer.
Offeree
Person to whom the offer is made.
Communication
Offeree must have knowledge of the offer and the offer must be made by the offeror her authorized agent to the offeree.
Intent
Determined by an objective standard of what a reasonable offeree would have believed.
Without reserve
Auctioneer may not withdraw the goods from the auction.
Definiteness
Offer’s term must be clear enough to provide a court with a basis for giving an appropriate remedy.
Good faith
Honesty in fact in the observance of reasonable commercial standards of fair dealing.
Commercial reasonableness
Judgment of reasonable person familiar with the type of business transaction involved.
Output contract
An agreement of a buyer to purchase the entire output of a seller’s factory.
Requirements contract
An agreement of a seller to supply a buyer with all his requirements for certain goods.
Lapse of time
Offer remains open for the time specified or, if no time is stated, for a reasonable period of time.
Revocation
Cancellation of an offer by an offeror; generally, an offer may be terminated at any time before it is excepted.
Option Contract
Contract providing that an offer will stay open for a specified period of time.
Consideration
The inducement to enter into a contract,, consisting of an act or a promise that has legal value.