Chapter 11: Agreement in Traditional and E-Contracts Flashcards
What are the two parts of an “Agreement”?
Offer + Acceptance = Agreement
Define: Offer
A promise or commitment to do or refrain from doing some specified action in the future.
What are the three elements that are necessary for an offer to be effective?
1) Serious Intention, 2) Terms must be specific/reasonably definite, 3) The offer must be communicated
What are the six examples of what ISN’T an offer?
1) Expressions of opinions, 2) Statements of future intent, 3) Preliminary Negotiations, 4) Advertisements, 5) Auctions, and 6) Agreements to agree (depending on intent)
How is “serious intent” determined by?
It is determined by what a reasonably person in the offeree’s position would conclude that the offeror’s words and actions meant.
What are the four components that are needed to express sufficient “definiteness of terms”?
1) the identification of the parties 2) identification of object/subject matter 3) Consideration to be paid 4) time of payment, delivery, or performance
Define: Revoke
The OFFEROR’S act of withdrawing an offer.
When can an offer be revoked?
As long as the revocation is communicated to the offeree before the offeree accepts.
When does a revocation become effective?
When the offeree actually RECEIVES the document.
Define: Option Contract
An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree. An option contract takes away the offeror’s power to revoke the offer for the period of time specified in the option.
Define: Rejection
When an offeree REJECTS the offer
When is a rejection of an offer effective?
Only when it is actually received by the offeror or the offeror’s agent.
What is the “Mirror Image Rule”?
Requires that the offeree’s acceptance to match the offeror’s offer EXACTLY, any changes/additions automatically terminates the offer and substitutes the counteroffer.
What are some ways that a contract can be terminated BY LAW?
1) Lapse of time, 2) Destruction of the subject matter, 3) Death or incompetence 4) Supervening illegality of the proposed contract.
True or False: Can an offer be accepted by silence?
FALSE
What is the “Mailbox Rule”?
An offer becomes valid when it is dispatched, NOT when it is received by the offeror.
What is a “click-on-agreement”?
The act of clicking on a box indicating “I accept” or “I agree” to accept an online offer.
What is a “shrink-wrap-agreement”?
often used with software packages. The terms are inside the box. The courts look at these as if the seller is proposing a contract which the buyer accepts by failing to object and by using the product.
What is “Browse wrap”?
usually not enforceable, if the software can be installed without having to click “I agree” or in some other way consent to terms.
Define: E-Signature
An electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.
What is “UETA”
“Uniform Electronic Transactions Act”, and was intended to give the same legal effect to electronic signatures as it does to paper documents.
What is the goal of the “E-SIGN ACT”?
To make e-commerce/transactions/signatures as consistent from state to state as possible.
What are some examples of documents that still have to be signed “the old fashioned way”?
Court documents, divorce decrees, evictions, foreclosures, health insurance terminations, prenuptial agreements, wills. . .
