Chapter 11 Flashcards
Who are the parties to an offer?
The offeror: person making the offer
The offeree: person receiving offer
Who has the power of acceptance?
The offeree has the power of acceptance because they decide if the k will be made
What specific language is required for an offer?
The offer must be definite and certain.
What language is not an offer?
A preliminary negotiation. It is not definite and certain
What is the objective test?
“It would appear to a third party watching that it looked like the people were entering into a k”
What is the general rule of offers?
Offers made on tv, radio or internet or even read in the papers are not offers
What is a large communicating medium?
If it is broadcasted on media reaching a vast audience
Why does a large medium not create a power of acceptance?
There is no offer therefore there is no power of acceptance. Large Medium does not have limitations
What are the three exceptions to a large communicating medium?
Limited Class of Offerees, First Come- First Served and a Reward k
What is a limited class of offerees?
This means the power of acceptance is limited to a small number
What is first come-first served?
This is an offer because it limited the number of offerees to one
What is a reward k?
A unilateral k because only a number of people can accept the offer of reward because it is limited to those performing an act (providing information)
What terms must be in all k’s under the c/l?
Price Term, Delivery Term, Quantity Term and Warranty Term.
What is a warranty term?
How long is it guaranteed?
What is a price term?
How much will the goods cost to buy?
What is a delivery term?
What time will you deliver?
What is a quantity term?
How many are you willing to sell me?
What terms must be in all k’s under the UCC?
Quantity Terms, Gap Filling, Vague K’s
What is the exception to the rule of quantity: Output-Requirement K’s?
Under the rule of quantity you have to have a certain number unless you may not know the exact number they will need.
“All that I produce”
“All that I require”
“All that I can harvest”
What is the rule of gap filling?
It’s okay to forget some terms (except quantity) in the k because you can just agree on things such as a price later on, and if you can’t agree, the court would fill in the price by listening to testimonies.
What are Vague K’s?
If the contract doesn’t have specific details, then there is no enforceable contract. Under the UCC, if the parties enter into a k and the terms are vague, it is not enforceable.
What are the three elements for an offer?
The language must be definite and certain, it must appear to a reasonable third party that the parties intended to enter into a k (objective test) and the offer must be communicated to the offeree.
Important Concept 1:
Under the common law, there are no terms required for a k to exist there than in real estate, when an adequate description of the property must be set forth.
Important Concept 2:
K’s under the UCC are enforceable if they do not have quantity IF they are output-requirement k’s.
Important Concept 3:
Under the UCC the only required term is quantity! All other terms can be gap filled, but putting vague terms will result in a voidable k
