Contract Formation

Question 1

Offer

Answer 1

• intended to result in a contract if accepted by other party
• contains sufficiently definite terms to form a contract

Question 2

Second doubts (revoke offer)

Answer 2

-can be revoked if it reaches offeree before acceptance
-can’t be revoked if offer is irrevocable or contract states a fixed time for its acceptance

Question 3

When does an offer become effective

Answer 3

An offer becomes EFFECTIVE when it reaches the offeree
- may be withdrawn (even if irrevocable) if withdrawal reaches the offeree before/at the same time as the offer

Question 4

An offer is accepted when

Answer 4

• declaration by the offeree (any form of statement by the offeree that indicates acceptance)
  
  • has to reach offeror
  • within a reasonable/fixed time

Question 5

modified conditions (counter-offer)

Answer 5

• acceptance w/ additions/limitations is a rejection of the offer and constitutes a counter offer
• acceptance w/ different terms that do not MATERIALLY ALTER the terms of the offer = acceptance

Question 6

Conclusion of a Contract when?

Answer 6

• when acceptance reaches offeror
• if acceptance is by conduct: when notice of the conduct reaches offeror

Question 7

The 2 types of agreement?

Answer 7

• unilateral agreement - only 1 party has certain obligations (gift)
• reciprocal agreement - both parties have commitments

Question 8

Privity of a Contract (osvedomenost)

Answer 8

• only obligations/rights for parties involved
• exception - 3rd party claims

Question 9

Performance under a Contract

Answer 9

• strict compliance to the execution of the contract
• sanctions in case of breach of contract [e.g. no force majeure or formal notice(forced performance; termination; replacement; repair)]