Contracts MBE Flashcards
Who may accept an offer?
The party offer made to and the party who is aware of offer. Need both.
List acceptable methods of acceptance.
Full performance. Promise to perform. Acceptance through mails.
How is an offer in a unilateral K accepted?
Through FULL PERFORMANCE ONLY.
How is an offer in a bilateral K accepted?
Through promise to perform or beginning performance.
Explain general rule on acceptance through mails.
Acceptance through mail must be reasonable under the circumstances.
When is acceptance through mail effective?
Upon dispatch.
What happens when offeree sends acceptance AND rejection through mails?
Depends.
If rejection sent first and then acceptance, mail box rule does not apply. Whichever is received first is effective. SO if rejection is sent first and received first rejection is effective. If rejection sent first and acceptance is received first, then acceptance is effective and creates an enforceable contract.
If acceptance sent first and then rejection, mail box rule does apply. But, if rejection is received first here and the offeror change his position in reliance on that objection, offeree will be estopped from saying acceptacne should be effective.
If rejection sent first through mail and then acceptance sent through mail what happens?
Mailbox rule does not apply.
Whichever is received first is then effective. If rejection received first then acceptance is considered a counter offer and offer is terminated.
if acceptance sent first through mail and then rejection what rule applies?
Mail box rule then applies.
But, offeree may be estopped from complaining to court if acceptance is received after rejection and the offeror relies upon rejection and changed position on reliance.
In an option contract when is a mailed acceptance effective?
Upon receipt not upon dispatch. Must be received within the open time period.
Describe the Parol Evidence Rule.
When an agreement is “integrated” the parol evidence rule will bar evidence of prior oral or written agreements, or contemporaneous oral agreements to vary or add to the integrated agreement.
NB: Oral or written agreements that occur after the final agreement entered into do not fall within the parol evidence rule. (Modifications)
Exceptions to Parol Evidence Rule
- Explaining the final writing (prior oral or written agreements may be introduced to explain the writing)
- Partial Integration: when an agreement is only “partially integrated” prior oral or written agreemetns may be introduced to ADD to the final writing.
- Establish a defense.
- Collateral Agreements are always admissible. (agreement entered into for separate consideration)
In a shipment contract, when does risk of loss shift from seller to buyer?
When the goods are delivered to common carrier and reasonable accommodations are made for the delivery of the goods.
In a destination contract, when does risk of loss shift from seller to buyer?
Seller’s delivery obligation is not complete until the goods are TENDERED to the buyer…
What triggers a destination contract?
F.O.B. Buyer’s Place of Business or Ex-Ship designation on contract.
Everything else is a shipment contract. t
