Contract 1-8 Flashcards
What are the elements of a valid contract?
Mutual Assent (offer and acceptance);
Consideration or a substitute; AND
No defenses to formation.
Priority: HIGH
What law governs contracts for the Sale of Goods?
Article 2 of the Uniform Commercial Code.
*For mixed contracts the predominant purpose of the contract determines what law governs.
Priority: HIGH
What are the elements of Mutual Assent?
Offer: A manifestation of intent to contract, with definite and reasonably certain terms, that is communicated to the offeree.
Acceptance: A manifestation of assent to the terms of the offer, which indicates a commitment to be bound.
Bilateral contracts: performance manifests acceptance, Unilateral contracts: offer is accepted only when performance is complete.
Priority: HIGH
Are advertisements considered offers?
No, BUT instead are deemed invitations for offers.
It may be considered an offer if it includes sufficiently clear and definite terms so a reasonable person would understand how performance and acceptance may be completed.
Priority: Medium
What is the Mailbox Rule?
If the offeror mails a letter revoking, but the offeree sends a letter accepting BEFORE he receives the revocation, then a valid contract is created. This is because the acceptance was effective before the revocation.
Acceptance = once sent or communicated
Revocation = when received
Priority: Medium
When will conduct by the parties create a contract?
If:
The conduct is intentional; AND
Each party knows (or has reason to) that the other party will interpret the conduct as an agreement to enter into a contract.
Priority: Low
Output Contract
vs.
Requirement Contract
Output: Requires a seller to sell all of the output of the particular goods to the buyer.
Requirement: Requires the buyer to purchase all of the particular good that the buyer requires from the seller.
Priority: Medium
When is an offer Terminated?
Offers may be terminated before acceptance by:
Rejection or Counter-offer by offeree;
Lapse of time;
Revocation by offeror; OR
Death / Incapacity of either party.
Priority: Medium
