Flash Cards 1
When are advertisements considered offers?
Generally not offers unless they only invite acceptance
How is serious intent (objective intent) measured?
by a reasonable person’s interpretation of the circumstances.
List the requirements of an offer
- ) Serious Intent
- ) Definite Terms
- )Communication of offer
List the ways an offer can be terminated
- Revocation
- Rejection
- Counteroffer
When are preliminary negotiations considered offers?
Preliminary negotiations are generally not offers unless such negotiations includes price lists, solicitation of bids, and auctions with reserve.
List the three types of irrevocable offers.
- Options
- Sales of goods firm offers
- Offers irrevocable by estoppel
Describe the general rule of revocation
An offer can be revoked at any time before acceptance unless offer is irrevocable.
List the requirements of a firm offer for sales of goods
- Offeror is a merchant
- Offerror using a signed writing
- Assures offer will remain open for a stated period of time (without consideration not to exceed 3 months, regardless)
When is the revocation of a public offer effective?
Effective if made in the same medium as the offer
When is revocation by the offeror effective?
When offerree knows of or receives revocation
Define “Option Contract”
An option contract is a distinct contract in which the offerree gives consideration to keep offer open
When does the acceptance of an unilateral offer occur?
upon completion of the act required by the offeror
List the ways in which an offer can be terminated by operation of law
- Lapse of time
- Death or insanity (unless irrevocable)
- Destruction of specific subject matter of contract.
- Intervening illegalty
What conditions must exist for the acceptance of a bilateral offer to take place?
Acceptance must be unequivocal and communicated to offeror.
When is acceptance of an offer effective?
If sent by authorized medium, effective when delivered to medium.
If sent by unauthorized medium, effective when received by offeror, provided offer still open
Can silence be considered a form of acceptance to an offer?
Generally not acceptance unless the offerree’s actions indicate an attempt to accept or offerree has duty to reject.
Describe mirror image rule regarding acceptance of offer.
Must be absolute, unequivocal, and unconditional. In common law, if acceptance is not a mirror image of offer’s terms, it is a rejection and counter offer
Requirements of offer
Objective intent to contract
Common law: Subject matter, price, payment terms, time for performance, etc
UCC: subject matter and quantity if more than one
UCC will supply remaining terms if not in offer
List elements of contract
Offer, acceptance, consideration, capacity of parties, legality, writing (when required)
What happens under common law if there are additional terms in an acceptance?
It is a counter offer and a rejection
What happens under UCC if their are additional terms in acceptance and parties are non merchants?
There is a contract but with additional terms
What happens under UCC if their are additional terms in acceptance and parties are merchants?
There is a contract with additional terms unless those terms are material, are objected to, or if offer was specifically limited to its terms
