Formation of Contracts

Question 1

Contract Formation

Answer 1

1) Offer
2) Acceptance
3) Consideration

Question 2

Offer

Answer 2

• Outward manifestation of intent to enter into a contract
• Intent AND Specific terms

Question 3

Ads

Answer 3

• Not Offers
• Invitation to an Offer

Question 4

Termination of an Offer

Answer 4

1. Death
2. Lapse of time
3. Rejection
4. Counteroffer
5. Revocation

Question 5

Direct Revocation

Answer 5

Retraction of an Offer by the offeror

Question 6

Indirect Revocation

Answer 6

Person receiving Offer LEARNS another deal was made

Question 7

instances when an offer is not revocable

Answer 7

1) Option Contract
2) UCC Firm Offer (max 90 days)
3) Unilateral K

Question 8

Unilateral K vs. Bilateral K

Answer 8

Unilateral K: promise for an act
Bilateral K: promise for a promise

Question 9

Common Law Mirror Image Rule

Answer 9

Acceptance must mirror the Offer

Question 10

Ways to Accept an Offer

Answer 10

• silence
• performance
• mail
  *unless specified by the Offeror

Question 11

Common Law Mailbox Rule

Answer 11

Acceptance is effective upon DISPATCH

Question 12

Mailbox Rule Execption

Answer 12

If a Rejection is sent first then an Acceptance, whichever arrives first wins
(If Acceptance is set first, then Acceptance)

Question 13

UCC Acceptance

Answer 13

Acceptance is construed liberally UNLESS
- material change to the terms
- objection in a reasonable amount of time
- offer limits the acceptance

Question 14

Consideration

Answer 14

Bargained-for exchange

Question 15

Illusory Promise

Answer 15

Party making the Offer retains control

Question 16

Gifts valid consideration?

Answer 16

• Promise to give is NOT valid consideration
• Already given gift IS valid consideration

Question 17

Is Past or Moral Consideration valid consideration?

Answer 17

NOT valid

Question 18

Is Promise to pay debt barred by Statute of Limitation valid consideration?

Answer 18

valid

Question 19

Is Promise to pay debt discharged by bankruptcy valid consideration?

Answer 19

valid

Question 20

Is Forbearance to sue valid consideration?

Answer 20

valid

Question 21

When is Promissory Estoppel valid consideration?

Answer 21

Detrmental Reliance