Chapter 6 Flashcards
Offeror
Person who makes the offer
Contract
Agreements between two or more parties that create obligations
Offeree
Person whom it is made to
What are the 6 requirements of a contract?
- Offer and Acceptance 2. Genuine Assent 3. Legality 4. Consideration 5. Capacity 6. Writing
Offer
Proposal by an offeror to do something, and the offerer does something in return
What are the three tests an offer must pass?
- Contractual intent must be present in an offer. 2. Offer must be communicated to the offeree. 3. Essential terms of the offer must be complete and definite
What is a jest?
Saying an offer but in a jokingly way
Give some examples of invitation to negotiate
Putting price tags on items with a set price, or putting ads in the newspaper.
What are the 5 things an offer needs to make it complete?
- Identity of the specific lot. 2. Price. 3. Full terms of payment. 4. Date for delivery of possession. 5. Date for delivery of the deed.
Definite
Essential term must be identified clearly
Revocation
Right to withdraw an offer before it is accepted
Counteroffer
If offeree changes the offerer’s terms and sends it back to offerer
Option
Offeree gives the offerer something of value in return for a promise to keep the offer open
Firm offer
Written offer contains a term stating how long it is to stay open
Acceptance
When a party to whom an offer has been made agrees to proposal
