FORMATION

Question 1

What is MUTUAL ASSENT?

Answer 1

Offer and Acceptance

Question 2

What is a counteroffer?

Answer 2

Is a declarative statement that rejects the original offer and offers modified terms.
A counteroffer always TERMINATES the original offer.
TIP: Bargaining (“C’mon, this is worth at least $1,000!”) and
Questions (“Can you pay cash?”) are NOT counteroffers. They do NOT terminate the original offer.

Question 3

Is this a counteroffer?
“C’mon, this is worth at least $1,000!”

Answer 3

No. This is not a declarative statement that rejects the original offer and offers modified terms. This is bargaining.

Question 4

Is “Can you pay cash?” a counteroffer?

Answer 4

No. this is a question and not a counteroffer.

Question 5

What is CONDITIONAL ACCEPTANCE and what is its
legal effect?

Answer 5

a counteroffer. It terminates the original offer and becomes the new offer. Example: “I’ll take that price, but ONLY IF you pay cash.”

Question 6

What does conditional language such as if, only if, and so long as, signify?

Answer 6

It is conditional acceptance, a counteroffer. It terminates the original offer and becomes the new offer.

Question 7

What is the doctrine of SUPERVENING ILLEGALITY?

Answer 7

iF A PROPOSED CONTRACT THAT WAS LEGAL AT THE TIME OF THE OFFER becomes illegal, the POWER OF ACCEPTANCE IS TERMINATED.