Contract Outline

Question 1

K?

Answer 1

binding K requires manifestation of mutual assent, consideration, and lack of valid defenses

Question 2

Offer

Answer 2

Objective manifestation of a willingness by offeror to enter into agreement that creates power of acceptance in offeree

Question 3

Intent- a statement is an offer only if:

Answer 3

Person to whom it is communicated could reasonably interpret it as an offer

Expresses present intent of a person to be legally bound by a K

Question 4

Knowledge

Answer 4

offeree must know of the offer in order to have the power to accept

Question 5

Terms

Answer 5

must be certain and definite or the K fails for indefiniteness

Question 6

What terms are required under CL to create a K?

Answer 6

• Essential terms (parties, subject matter, price, quantity) must be covered in K
• If the parties intended to create a K, the court may supply missing terms

Question 7

What terms are required under UCC to create a K?

Answer 7

• Only essential term is quantity
• Exception—requirements or output Ks (UCC implies “good faith”)
• UCC “fills the gap” if other terms are missing
• K formed if both parties intend to K and reasonably certain basis for giving remedy

Question 8

Language in a K

Answer 8

offer must contain words of promise, undertaking, or commitment, and be targeted to a number of people who could actually accept

Question 9

If a return promise is requested, what type of K is this?

Answer 9

Bilateral

Question 10

If an act or performance is requested, what type of K is this?

Answer 10

Unilateral

Question 11

Invitation to deal

Answer 11

advertisements are only an invitation to receive offers (but may qualify as an offer if sufficiently specific and limit who can accept or if associated with a stated reward)

Question 12

What ways terminate an offer?

Answer 12

• lapse of time
• death/mental incapacity
• destruction/illegality
• revocation
• Rejection