Formation Of A Contract

Question 1

Offeror

Answer 1

Party who makes the offer

Question 2

Offeree

Answer 2

Person who accepts/ doesn’t accept offer

Question 3

Contract

Answer 3

2 individuals who make an agreement

Question 4

Offer

Answer 4

A proposal or promise that shows a willingness to contract on firm and definite terms

Question 5

Invitation to treat

Answer 5

An indication that 1 person is willing to negotiate a contract with the other, but is not yet willing to make a legal offer

Question 6

Bilateral contract

Answer 6

Both the offeror and the offeree are required to do something

Question 7

Unilateral contract

Answer 7

An agreement to pay in exchange of performance, the potential performer has the chance to choose whether to act

Question 8

Acceptance

Answer 8

The unqualified and unconditional agreement to all the terms of the offer by words or conduct

Question 9

Consideration

Answer 9

Involves each party of a contract give something of value to establish the contract

Question 10

Privity of a contract

Answer 10

A contract can not confer rights nor impose obligations on someone who is not a party to the contract

Question 11

ITCLR

Answer 11

Parties to a contract must agree explicitly or implicitly that the contract is legally binding and enforceable in court