Chapter 11 Flashcards
Offer
An act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms
Offeror
The person who makes an offer
Offeree
The person to whom an offer is made
Statements that usually do not amount to offers
- An invitation to bargain
- Price Quotes
- Letter of intent (summarizes negotiating process)
- Advertisements
- Auctions
Consumer protection statute
Outlaws false advertising
Gap-filler provisions
UCC rules for supplying missing terms
Output contract
Obligates the seller to sell all of his output to the buyer, who agrees to accept it
Requirements contract
Obligates a buyer to obtain all of his needed goods from the seller
Revocation
Takes the offer back
Option contract
The offeror may not revoke an offer during the option period. Which is if the offeree pays the offeror to hold open its offer.
Firm Offers
If a promise made in writing and signed by a merchant, and if it agrees to hold open an offer for a stated period, offeror may not revoke offer.