chapter 14 Flashcards
intent
first element of an offer; the offeror must show intent to be bound by the offeree’s acceptance
definite and certain
all the material terms must be included
material terms
allow a court to determine damages in the event that one of the parties breaches the contract
communication
third element; the offer must be communicated to the offeree or the offeree’s agent
termination
can occur by revocation by the offeror, rejection or counteroffer by the offeree, death or incapacity of the offeror, destruction or subsequent ullegality of the subject matter of the offer, or lapse of time or failure of other failure of other conditions stated in the offer
revocation
effective when the offeree receives it
option contract
the offeree gives the offeror a piece of consideration in exchange for holding the offer open for the specified period of time
rejection
regardless of how long the offer was stated to be open, once the offeree rejects it, it is terminated
counteroffer
defined by the Restatement as “an offer made by an offerr to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer
acceptance
there should be a manifestation of intent to be bound by the acceotance to the contract, agreement to the definite and certain terms of the offer, and communication to the offeror
mirror-image rule
says that the terms of the acceptance must mirror the terms of the offer
mailbox rule
provides that an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offerr recieves it