Contracts - Formation of a K Flashcards
How do you create a K
Offer
Acceptance
Consideration
Offer
an outward manifestation of intent to enter into a contract
What is one thing that is not considered an offer
advertisement
Why are advertisements generally not considered
because they are considered an invitation to offer
How can an advertisement graduate to an offer
more speific terms
How do can you terminate an offer
Death
Lapse of time
Rejection
Counteroffer
Revocation
For lapse of time to terminate an offer, how long is the waiting period
usually a reasonable amount of time if no time is stated
In order for a revocation to terminate an offer, what are the 2 ways
Direct and Indirect
Direct revocation
retraction of an offer by the offeror
In order to revoke the offer you must do it
before the person responds
Indirect revocation
person receiving offer learns another deal was made
What are 3 instances in which the offer is irrevocable
Option K
UCC Sale of goods
Unilateral Act w/ performance already beginning
Option K
I promise you I will keep the offer open for a certain period of time
With additional consideration
Sales of good / firm offer
Sale of goods
Promise to keep the offer open
Writing to keep the offer open signed by the merchant
How long does a firm offer last
time stated but if no time is stated it is a maximum of 3 months
For a firm offer if no time is stated and we past the period of 3 months what happens to the offer
it becomes revocable
Unilateral K you look for
performance because once performance beings it becomes irrevocable
Bilateral K
Promise for a promise
Once the offer is made to the person, it creates a
power of acceptance
Mirror image rule only applies in
common law
Mirror image is when
Acceptance has to mirror my offer
What are the ways you can accept a offer
Silence (Fact pattern must state that the offeror would be okay with this)
Performance
in any way the offeror says to
With the mailbox rule, acceptance is effective when
sent
What is the exception to the mailbox rule
When you send the rejection first and then you send the acceptance letter → the first letter to arrive is effective
UCC acceptance allows for
liberal acceptance even if you are off with the way you accept
For UCC acceptance what matters
the material terms are the same
What is not a valid acceptance under the UCC
Material change the terms of the K
Objection to the change of term in reasonable amount of time
Offer limits the acceptance
Example of material change of the terms of the K
warranty disclaimers
Consideration
bargain for exchanged between parties
Will the court ever invalidate a K based on consideration
no
What are the different ways to test you on consideration
illusory promise
gifts
past / moral consideration
Illusory promise is when
Party making the offer retains the control
EX: I would like to sell you my car but I will let you know when I want to sell it to you
What is the modern trend of a illusory promise
as long as there was interpretation that the promise can be interpreted as valid
The promise to give a gift is
invalid consideration
If I gave you the gift, is it valid consideration
yes
Past or Moral consideration is
not considered consideration
What is the key with past or moral consideration
when you gave the pormise. If you gave the promise before the person did the act, it is valid consideration.
What are 4 instances of valid consideration
promise to pay debt barred by SOL
Promise to pay debt discharged by bankruptcy
Forebearance to sue even though you could
promissory estoppel
Promissory estoppel
Promise by another that makes you rely upon to your detriment
Accord and satisification deals with
debts
If there is no dispute about the debt in an accord and satisfaction and you cash a check that says pay in full can you get the remainder
yes
If there is a dispute about a debt and you cash a check that says pay in full or there is a settlement can you get the remainder
no
When there is a doubt about the debt in the first place but you paid something anyway, can you get the remaining balance
no
