Chapter 10-Mutual Assent Flashcards
What are 4 elements necessary to create a contract?
- mutual assent
- consideration
- legally efficient
- capacity
what is an offer?
manifestation of a willingness to enter into a bargain
Manifestation of a willingness to enter into a bargain is what?
an offer
what are 3 requirements for a valid offer?
- communicated (offeror– offeree)
- promise/intent
- terms are definite and certain (parties, subject, quantity)
When can an offer be accepted?
Anytime as long as the offer is still alive ( only accepted by offeree)
What are 7 ways in which an offer can “die”?
- lapse of time (stated or reasonable, depends on situation)
- revocation
- rejection
- counter offer
- death or incompetency
- destruction of subject matter
- subsequent illegality
What are the exceptions to the ability to revoke an offer before it is accepted? (there are 5, GENERALLY anytime before)
- option contract: ability to keep contract open
- Firm offer under the U.C.C. (merchants, cant exceed 3 months)
- statutory irrevocability (ex. construction workers)
- OFFER to enter into a unilateral contract where substantial performance has begun
- Promissory estoppel
What is acceptance?
positive and unequivocal expression of a willingness to enter into a contract on the terms of an offer
what is effective the moment is received?
- offer
- rejection
- revocation
- counter offer
What is effective the moment it is dispatched?
acceptance= if authorized form of communication used
=if not- rejection
What is an authorized form of communication?
STATED, if not stated, the type used by offeror
OR any other reasonable form of communication IF it arrives
When are variant acceptances allowed?
a. common law: Not “mirror image” law
b. U.C.C. : alleviate battle of forms, additional terms- part of contract if they do not materially alter agreement, different terms- part of contract when accepted by offeror
