Formation of Contracts

Question 1

Contract Formation:

Answer 1

Contract Formation:
1) Offer
2)Acceptance
3)Consideration

Question 2

Offer:

Answer 2

Offer:
*“Outward manifestation of intent to enter into
a contract”
*Intent AND Specific terms

Question 3

Ads:

Answer 3

Ads:
*Not an Offer
*“Invitation to an Offer”

Question 4

Offer can be terminated by:

Answer 4

Termination of an Offer:
*Death
*Lapse of time
*Rejection
*Counteroffer
*Revocation

Question 5

Direct Revocation:

Answer 5

Direct Revocation:
*Retraction of an Offer by the offeror

Question 6

Indirect Revocation:

Answer 6

Indirect Revocation:
*Person receiving Offer LEARNS another deal
was made

Question 7

Revocable

Answer 7

Revocable:
* Offers are REVOCABLE
* Only three instances when an Offer is not
revocable

Question 8

3 instances when an offer is not revocable (irrevocable)

Answer 8

1. Option Contract
2. UCC Firm Offer
3. Unilateral Contract

Question 9

Option Contract:

Answer 9

Option Contract:
1) Promise to keep Offer open
2) Additional Consideration

Question 10

UCC Firm Offer:

Answer 10

UCC Firm Offer:
1) Merchants
2) Signed writing by Merchant

Question 11

UCC Firm Offer – Time Limit:

Answer 11

UCC Firm Offer – Time Limit:
* Can only stay open for a MAXIMUM of
3 months

Question 12

unilateral K vs. bilateral K

Answer 12

Unilateral K = Promise for an act
vs.
Bilateral K = Promise for a promise

Question 13

acceptance - Common Law Mirror Image Rule:

Answer 13

Common Law Mirror Image Rule:
*Acceptance must mirror the Offer

Question 14

How to Accept an Offer

Answer 14

How to Accept an Offer:
*Silence
*Performance
*Mail

Question 15

Common Law Mailbox Rule

Answer 15

Common Law Mailbox Rule:
*Acceptance is effective when SENT

Question 16

Mailbox Rule Exception

Answer 16

Mailbox Rule Exception:
*If a Rejection is sent first, then an
Acceptance is sent, whichever arrives first
wins

Question 17

UCC Acceptance:

Answer 17

UCC Acceptance:
*Acceptance is construed liberally

Question 18

Exceptions to UCC acceptance

Answer 18

Exceptions:
*Material change the terms of contract
*Objection to the change of a term in a
reasonable amount of time
*Offer limits the Acceptance

Question 19

Consideration:

Answer 19

Consideration:
*Bargained-for Exchange

Question 20

Illusory Promise:

Answer 20

Illusory Promise:
* Party making the Offer retains control

Question 21

Gifts

Answer 21

Gifts:
* Promise to give a gift is NOT valid
Consideration
* Already given gift IS valid Consideration

Question 22

Past or Moral Consideration:

Answer 22

Past or Moral Consideration:
* Is NOT valid Consideration

You did
something out of the goodness of your own heart, that already happened. Did I ask
you to do that? No. And therefore, I don’t owe you anything

Question 23

Promise to pay debt barred by Statute of Limitations:

Answer 23

Promise to pay debt barred by Statute of Limitations:
* Is valid Consideration

Question 24

Promise to pay debt discharged by
bankruptcy

Answer 24

Promise to pay debt discharged by
bankruptcy:
* Is valid Consideration

Question 25

Forbearance to sue:

Answer 25

Forbearance to sue:
* Promise not to sue
* Is valid Consideration

Question 26

Promissory Estoppel:

Answer 26

Promissory Estoppel:
* Detrimental Reliance