Formation

Question 1

Implied in fact K

Answer 1

Consensual agreement that does not express all the terms.

Eg. Agree to pay reasonable price

Question 2

Requirements for valid K

Answer 2

1. Offer
2. Acceptance
3. Consideration
4. Legal capacity of the parties
5. A legal objective

Question 3

Implied in law K

Answer 3

Equitable determination that one party bestowed a benefit on the other that the other is then obligated to pay for.
AKA: Quasi K or restitutionary obligation. Eg. Dr. Does emergency surgery on unconscious patient.

Question 4

Auctions as offers

Answer 4

Auctioneer is inviting offers.
A bid is an offer.
accepts by accepting the bid.
Without reserve bid is when auctioneer is making offer to sell to highest bidder. Bidder accepts by making bid.

Question 5

Requirements for offer

Answer 5

Outward manifestation that signals that acceptance will conclude the deal.

Question 6

Terminating offer

Answer 6

1. Lapse of time
2. Death or incapacity of either party
3. Revocation by offeror
4. Rejection by offeree

Question 7

Responses to offer

Answer 7

1. Accept
2. Reject
3. Counteroffer
4. Inquiry
5. Offeror can revoke

Question 8

Revocation by offeror

Answer 8

Free to revoke any time for any reason prior to acceptance being effectively communicated.
* Even if he promised to leave the offer open.

Question 9

Death or incapacity

Answer 9

If either party is incapacitated between offer and acceptance, then the power of acceptance is terminated.

Question 10

Option K

Answer 10

Prohibits offer from being revoked. Need:

1. Offer
2. Promise to keep offer open, and
3. Consideration.

Question 11

Functional equitable rule

Answer 11

Offer advertised in newspaper can be revoked at any time by advertising the revocation.
Offeree can no longer accept even if does not know of revocation.

Question 12

Construction K

Answer 12

Implied K created when general contractor relies on subcontractors bid to make his proposal even though sub made no promise to keep bid open.

Question 13

Firm offer

Answer 13

Under UCC,

1. irrevocable offer
2. by merchant
3. In signed writing
4. Expressly states that the terms are held open.

Question 14

Counteroffer

Answer 14

Rejects the original offer and makes a new offer to which acceptance will bind the agreement.
Mere inquiry about the offerors willingness to negotiate terms will not reject the offer.

Question 14

Acceptance requirements

Answer 14

1. Must mirror the terms of the offer (a change may be considered a counteroffer)
2. Must be communicated to the offeror.

Question 15

Unilateral K

Answer 15

Where performances by offeree is acceptance. -Performance binds offeror to terms and he can no longer revoke.
Eg. Offer of reward money for info.

Question 17

Silence as acceptance

Answer 17

1. Offeree has reason to know offerors intent and accepts the benefit of his services.
2. When offeror states silence is acceptance
3. Previous dealings will allow offeror to reasonably think the terms are acceptable,offeree has to speak up to not have silence as acceptance.

Question 17

Mailbox rule

FL

Answer 17

Acceptance under options K occurs when offeror receives it, not when offeree mails it.
(Florida rule)

Question 18

UCC acceptance

Answer 18

Mirror image rule not apply under UCC if

1. Non conforming goods or
2. Battle of the forms.

Question 20

Conforming acceptance under UCC

When consumer is a party

Answer 20

The additional or changed terms are an offer that can be rejected.

Question 21

Acceptance under the UCC

When both parties are merchants

Answer 21

Additional terms are considered part of the K unless

1. Offer expressly limits acceptance to terms of the offer,
2. Additional terms materially alter the K,
3. Offeror objects to additional terms within a reasonable time.

Question 22

Mailbox rule

Answer 22

Acceptance effective when mailed, not when received.

* but if rejection sent, then change I mind and send acceptance, whichever is received first by offeror is binding.