Chapter 12

Question 1

Agreement

Answer 1

A meeting of two or more minds in regard to the terms of a contract; two events - an offer by one party to form a contract and an acceptance of that offer

Question 2

Offer

Answer 2

A promise or commitment to perform or retain from performing some specified act in the future

Question 3

For an offer to be effective:

Answer 3

1. Offeror must have serious intention
2. The terms must be reasonably certain or definite
3. The offer must be communicated to the offeree

Question 4

Situations when intent is lacking (so it is not an offer)

Answer 4

Expressions of opinion 
Statements of future intent
Preliminary negotiations 
Advertisements
Online auctions 
Live auctions 
Auctions with and without reserve
Agreements to agree 
Preliminary agreements

Question 5

Revocation

Answer 5

The withdrawal of an offer by an offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability

Question 6

Option contract

Answer 6

A contract under which the offeror cannot revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer during this period without fear that the offer will be made to another person.

Question 7

Counteroffer

Answer 7

An offeree’s response to an offer in which the offeree rejects the original offer and at the same time makes a new offer

Question 8

Mirror image rule

Answer 8

A common law rule that requires for a valid contractual agreement, that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer

Question 9

Acceptance

Answer 9

The offeree’s notification to the offeror that the offeree agrees to be bound by the terms of the offeror’s proposal

Question 10

Mailbox rule

Answer 10

A rule providing that an acceptance of an offer becomes effective on dispatch.

Question 11

E contracts

Answer 11

A contract that is entered into in cyberspace and is evidenced only by electronic impulses rather than a typewritten form

Question 12

Forum-selection clause

Answer 12

A provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the contract

Question 13

Click on agreement

Answer 13

An agreement that arises when a buyer, engaging in a transaction on a computer, indicates his or her assent to be bound by the terms of an offer by clicking a button

Question 14

Shrink wrap agreement

Answer 14

An agreement whose terms are expressed in a document located inside a box in which goods are packaged

Question 15

Browse wrap terms

Answer 15

Terms and conditions of use that are presented to an internet user at the time certain products are being downloaded but that do not need to be agreed to before being able to install or use the product

Question 16

E-signature

Answer 16

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

Question 17

Partnering agreement

Answer 17

An agreement between a seller and a buyer who frequently do business with each other on the terms and conditions that will apply to all subsequently formed electronic contracts

Question 18

Record

Answer 18

Information that is either inscribed on a tangible medium or stored in an electronic or other medium and that is retrievable