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.
Firm offer
Irrevocable offer by a merchant to sell or buy goods, made an assigned writing that gives assurance that it will not be revoked for up to three months.
Statutory irrevocability
Offer made irrevocable by statute.
Irrevocable offer of unilateral contracts
A unilateral offer may not be revoked for a reasonable time after performance is begun.
Promissory estoppel
Non-contractual promise that binds to promise her because she should reasonably expect that a promise will induce the promisee (offeree) to take action in reliance on it.
Rejection
The refusal to except an offer.
Counter offer
Counter proposal to an offer.
Conditional acceptance
Acceptance of an offer contingent upon the acceptance of an additional or different term.
Death or incompetency
Of either of the offeror or the offeree terminates the offer.
Distraction of subject matter
Of an offer terminates the offer.
Subsequent illegality
Of the purpose or subject matter of the offer terminates the offer.
Acceptance
Manifestation of a willingness to enter into a contract on the terms of the offer.
Effective moment
Acceptance affective upon dispatch unless the offer specifically provides otherwise or the offeree uses an unauthorized means of communication.
Stipulated provisions in the offer
The communication of acceptance must conform to the specifications in the offer.
Authorized means
Usually any reasonable means of communication.
Unauthorized means
Acceptance affective when received, provided that it is received within the time within which the authorized means would have arrived.
Acceptance following a prior rejection
First communication received by the offeror is effective. 
Defective acceptance
Does not create a contract but serves as a new offer.
Mirror image rule
An acceptance cannot deviate from the terms of the offer.
