Contracts Essay Flashcards
Contracts for the sale of goods are governed by _____
art II of the UCC
“Goods” are all things moveable at the time they are
identified to the contract
under the UCC, the term “goods” specifically includes
growing crops, like tomatos
Tomatoes are goods, thus, the sale of tomatoes is governed by
Art II
To form a kx, there must be an
offer and acceptance
an offer is a promise, undertaking, or commitment to
APPLY FACTS
enter into a kx
During a discussion, the gardener stated that he would be willing to sell all the tomatos he grew in his garden for $25 per bushel to the cook.
Although that was an offer, no kx was formed at that point b/c the cook merely
expressed an interest in the idea
Later, the cook provided the gardener with a doc which contained an offer to sell the tomatoes and asked the gardener to sign it. G did so and handed back to cook, thus making an
offer to sell the tomatoes b/c the document expressed the gardener’s willingness to be bound to a kx
BUT no kx was formed b/c the cook did not accept that offer, and teh gardener revoked the offer before the cook attempted to accept it
An offeror is entitled to revoke an offer at will at any time ___unless an exception applies which limits the offeror’s power to terminate.
before acceptance, even if he has promised not to revoke for a certain time
one way an offeror’s power to revoke may be limited is when an option kx is present. An option is a distinct kx in which the offeree gives _____ for a promise by the offeror _______
consideration
not to revoke an outstanding offer
This did not apply in this scenario b/c the cook did not provide any consideration to the gardener to hold the offer open
A second way an offeror’s power to revoke may be limited is if the offeror has made what is known as a _____under Art 2
merchant’s firm offer
if a merchant offers to sell goods in a signed writing and the writing gives assurances that it will be held open, then the offer is ____
not revokable for lack of consdieration during the time stated
art II defines “merchant” as one who
regularly deals in goods of the kind sold or who otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved
Under art II, if the term of an offer assuring that the offer will be held open is on a form supplied by the offeree, that term must be
separately signed by the offeror
in some cases, an offeror may be prevented from revoking an offer based on detrimental reliance. When an offeror could reasonably expect that the offeree would rely to her detriment on an offer, the offeree does so rely, the offer will be held
irrevocable as an option kx for a reasonable length of time
