Formation Flashcards
Offers
- specific terms
- offers default = revocable
- Revoking: by person who made offer
- Rejecting: by person who received offer
when an offer is IRREVOCABLE
- option contract
- firm offer
- unilateral contract
- direct revocation
- indirect revocation
Option Contract
i. A promise to keep offer open for a period of time
ii. Are between lay (normal) people
iii. Needs additional consideration
Firm Offer
i. A promise to keep offer open for a period of time
ii. Between merchants
iii. Has to be in writing
iv. If there’s at least 1 merchant & other party is lay person = firm offer
Unilateral Contracts
i. A promise for performance
ii. The moment you begin performance –> offer is irrevocable
iii. $ isn’t owed until performance is complete
Direct Revocation
you tell someone the offer is revoked
- effective upon notice
Indirect Revocation
person offer was made to (offeree) learns that offeror sold it to someone else = indirectly revoked because offeree loses power of acceptance
Acceptance
Requires a manifestation of intent to accept
Ways to Accept
any reasonable means (words, actions, etc) as long as you manifest your intent to accept
- unless manner of acceptance is specified. in that case, must accept in manner specified
Mailbox Rule
- only apply to MAIL
- ACCEPTANCE IS EFFECTIVE WHEN MAILED
Mailbox Rule Exception
if you first mail a letter of rejection, but follow it by mailing a letter of acceptance, the letter that ARRIVES FIRST PREVAILS.
Consideration - Rule
a bargained for exchange; each party is giving something up
Consideration - Gifts
- promise to give a gift = unenforceable
- giving the gift = enforceable consideration
Consideration - Past/Moral
after you do something, they promise you consideration = unenforceable
