E Chapter 11

Question 1

Contract

Answer 1

To have a valid contract (K), we need an agreement, which includes mutual assent

Question 2

Mutual Assent

Answer 2

A valid offer and acceptance that are on the same page linked with a mutual understanding of the terms involved

Question 3

Offer

Answer 3

The expression of the desire to enter into an agreement on the terms stated

Question 4

What are the requirements of a valid offer

Answer 4

Intent is serious
Clearly stated with no confusion
Expressed to the intended party

Question 5

What are not valid offers

Answer 5

Opinions, future intents, invitations, or requests at preliminary negotiations, and ads are not considered offers.

Question 6

What are ways to terminate an offer

Answer 6

TIRED
T Time limit - Deadline
I Illness - Something affecting performance
R Rejection - or Revocation
E Expiration - Ending in a reasonable time
D Death - Or Destruction of a key offer person or item

Question 7

Counteroffer

Answer 7

A rejection + new offer by one rejecting the original offer. E.g. There’s no way I can accept that offer, but how about half that price?

Question 8

Mere Inquiry

Answer 8

Unlike a counteroffer, this is simply a negotiating or probing approach. This does not terminate the original offer. E.g. would you consider cutting that price in half?

Question 9

Option K

Answer 9

Offerer makes the offer irrevocable for a given period of time. Two ways:

Pay consideration for time
In NY, if the promise to keep open in writing, it is enforceable

Question 10

UCC Firm Offer

Answer 10

Special kind of option K wherein a merchant agrees in signed writing to keep offer involving goods open for a period of time not exceeding 3 months. It can be less than that but not more

Question 11

Acceptance

Answer 11

The expression of a willingness to abide by the terms of a valid offer

Question 12

Can silence be acceptance?

Answer 12

Yes, if it is understood to mean that, implied. Normal silence is not considered acceptance.

Question 13

What are some key issues in Acceptance

Answer 13

Was it valid?
Was it on time?
Were there changes requested by the offeree?

Question 14

E-signature

Answer 14

Online symbol of acceptance

Question 15

UETA

Answer 15

Uniform Electronic Transactions Art.

Gives validity to electronic records and signatures by giving them equal status with paper records, documents, and signatures.