Contracts 2A

Question 1

Contract

Answer 1

is a promise or a set of promises for

the breach of which the law gives a remedy

Question 2

§2. Promise

Answer 2

manifestation of intention to act
or refrain from acting in a specified way, so made as to justify a promise in understanding that a commitment has been made

Question 3

promisor

Answer 3

The person manifesting the intention is the ______

Question 4

promisee

Answer 4

The person to whom the manifestation is

addressed is the _______

Question 5

How a Promise May Be Made

Answer 5

A promise may be stated in words either oral or written, or may be inferred wholly or partly from conduct.

Question 6

§17. Requirement of a Bargain

Answer 6

(1) Except as stated in Subsection (2),the formation of a contract requires a bargain in which there is a manifestation of mutual assent to the exchange and a consideration.

(2) Whether or not there is a bargain a contract may be
formed . . . under the rules stated in §§82 –94.

Question 7

§3. Agreement Defined;

Answer 7

An agreement is a manifestation of mutual assent on the part of two or more persons.

Question 8

§3. Bargain Defined

Answer 8

A bargain is an agreement to exchange promises or to exchange a promise for a performance or to exchange performances.

Question 9

§22. Mode of Assent: Offer and Acceptance

Answer 9

(1) The manifestation of mutual assent to an exchange ordinarily takes the form of an offeror proposal by one party followed by an acceptance by the other party or parties.

Question 10

§24. Offer Defined

Answer 10

An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.

Question 11

§26. Preliminary Negotiations

Answer 11

NOT AN OFFER
if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude a bargain until he has made a further manifestation of assent.

Question 12

bilateral contract

Answer 12

results from exchange of promises

Question 13

unilateral contract

Answer 13

results from exchange of a

promise for a performance

Question 14

§35. The Offeree’s Power of Acceptance

Answer 14

(1) An offer gives to the offeree a continuing power to complete the manifestation of mutual assent by acceptance of the offer.
(2) A contract cannot be created by acceptance of an offer after the power of acceptance has been terminated in one of the ways listed in §36.

Question 15

§36. Methods of Termination of the Power of

Acceptance (4 items)

Answer 15

(a) rejection or counter-offer by the offeree, or
(b) lapse of time, or
(c) revocation by the offeror, or
(d) death or incapacity of the offeror or offeree.

Question 16

§38. Rejection (of offer rules)

Answer 16

(1) An offeree’s power of acceptance is terminated by his rejection of the offer, UNLESS the offeror has manifested a contrary intention.
(2) A manifestation of intention not to accept an offer is a rejection UNLESS the offeree manifests an intention to take it under further advisement.

Question 17

§39. Counter-Offers

Answer 17

(1) A counter-offer is an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a
substituted bargain differing from that proposed by the original offer.

(2) An offeree’s power of acceptance is terminated by his making of a counter-offer, unless the offeror has manifested a
contrary intention or unless the counter-offer manifests a contrary intention of the offeree.

Question 18

§41. Lapse of Time

Answer 18

(1) An offeree’s power of acceptance is terminated at the time specified in the offer, or, if no time is specified, at the end of a reasonable time.
(2) What is a reasonable time is a question of fact, depending on all the circumstances existing when the offer and attempted acceptance are made.

(3) Unless otherwise indicated by the language or the circumstances, and
subject to the rule stated in §49, an offer sent by mail is seasonably accepted if an acceptance is mailed at any time before midnight on the day on which the offer is received.

Question 19

§42. Revocation

Answer 19

An offeree’s power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract.

Question 20

§63. Time When Acceptance Takes Effect

Answer 20

Unless the offer provides otherwise,

(a) an acceptance made in a manner and by a medium invited by an offer is operative and completes the manifestation of mutual assent as soon as put out of the offeree’s possession, without regard to whether it ever reaches the offeror; but
(b) an acceptance under an option contract is not operative until received by the offeror.

Question 21

§56. Acceptance by Promise; Necessity of Notification to Offeror

Answer 21

Except as stated in §69 or where the offer manifests a contrary intention, it is essential to an acceptance by promise either that the offeree exercise reasonable diligence to notify the offeror of acceptance or that the offeror receive the acceptance seasonably.

Question 22

§66. Acceptance Must Be Properly Dispatched (snail mail rule)

Answer 22

An acceptance sent by mail or otherwise from a distance is not operative when dispatched, unless it is properly addressed and such other precautions taken as are ordinarily observed to insure safe transmission of similar messages.

Question 23

§59. Purported Acceptance Which Adds Qualifications

Answer 23

A reply to an offer which purports to accept it but is conditional on the offeror’s assent to terms additional to or different from those offered is not an acceptance but is a counter-offer.

Question 24

§43. Indirect Communication of Revocation (offeree indirect revoke)

Answer 24

An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract

AND

the offeree acquires reliable information to that effect.

Question 25

§30. Form of Acceptance Invited

Answer 25

(1) An offer may invite or require acceptance to be made by an affirmative answer in words, or by performing or refraining from performing a specified act, or may empower the offeree
to make a selection of terms in his acceptance.

(2) UNLESS otherwise indicated by the language or the circumstances, an offer invites acceptance in any manner and by
any medium reasonable in the circumstances.

Question 26

§50. Acceptance of Offer Defined;
Acceptance by Performance;
Acceptance by Promise
(three different have different acceptances)

Answer 26

(1) Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer.
(2) Acceptance by performance requires that at least part of what the offer requests be performed or tendered . . . .
(3) Acceptance by a promise requires that the offeree complete every act essential to the making of the promise.

Question 27

Tender (definition)

Answer 27

An unconditional offer to perform
coupled with:

(1) a manifested ability to carry out the offer; AND
(2) production of the subject matter of the tender.

Question 28

§32. Invitation of Promise or Performance (in doubt of offer being Promise or Performance)

Answer 28

In case of doubt an offer is interpreted as
inviting the offeree to accept either by
promising to perform what the offer
requests or by rendering the performance,
as the offeree chooses.

Question 29

§45. Option Contract Created by Part Performance or Tender

Answer 29

(1) Where an offer invites an offeree to accept by rendering a performance
AND does NOT invite a promissory acceptance,
an option contract is created
-when the offeree tenders
-OR begins the invited performance
-OR tenders a beginning of it.

(2) The offeror’s duty of performance under any option contract so created is conditional on completion or tender of the invited performance in accordance with the terms of the offer.

Question 30

§25. Option Contracts

Answer 30

An option contract is a promise which meets
the requirements of a contract AND limits the
promisor’s power to revoke an offer.

Question 31

§37. Termination of Power of Acceptance

Under Option Contract

Answer 31

Notwithstanding §§38–49, the power of
acceptance under an option contract is NOT
terminated by
-rejection or counter-offer
-by revocation,
-or by death or incapacity of the offeror

ONLY LASPE OF TIME