Contracts Flashcards
Four things to consider in determining whether an enforceable contract has been formed
Mutual Assent
-offer
-acceptance
Consideration
-consideration substitutes
Defenses to formation
Statute of FraudsOffer
An offer is an objective manifestation of a willingness by the offeror to enter into an agreement that creates the power of acceptance in the offeree
How is intent measured in contract law
Whether a party intends to enter into a contract is judged by outward objective facts, as interpreted by a reasonable person
What would a reasonable person in the other party’s position believe as a result of that party’s objective manifestation of intent
Must be a present intent
What terms are required for an offer to exist under the common law
All essential terms must be included
Parties
Subject
Price
Quantity
What terms are required under the UCC for an offer to exist
The UCC is more willing to plug the gaps and find a contract even if the contract leaves out some key terms generally only requiring identification of the parties, subject, and quantity
Price does not need to be included
Missing terms in a contract
A contract may still be formed when a term is missing if it appears that the parties intended to create a contract and if there is an objective standard to reference, a court may supply a missing term because of the presumption that parties intended to include a reasonable term
Vague terms
If a term is vague there is no presumption of intent to include a reasonable term
How to distinguish a unilateral contract from a bilateral contract
If a return promise is requested, then the contract is a bilateral contract. If an act is requested, then the contract is a unilateral contract
Invitations to deal
An invitation to deal is a preliminary communication that still reserves a final round of approval with the speaker and does not confer a power of acceptance to the other side, so it is not an offer
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