Formation of K Flashcards
2) Offer
Outward manifestation of Intent to enter into a contract’
K Formation
K=MA( Orev+A) +C-D
Ads
not offers
Termination of Offer
(i) Death
(ii) Lapse of Time
A Has to be reasonable
(iii) Rejection
(iv) Counteroffer
A Changes materials terms
(v) Revocation
(iv) Counteroffer
A Changes materials terms
(v) Revocation
A Direct Revocation
B Indirect Revocation
A Direct Revocation
Retraction of an Offer by the Offeror (Person making the Offer)
Indirect Revocation
- Person receiving Offer LEARNS another deal was made
a. The power of acceptance is now gone
- Irrevocable Offers
a. Option Contract
b. UCC Firm Offer
c. Unilateral Contract, once the Act Starts
a. Option Contract
i. Promise to keep the Offer Open
ii. Additional Consideration is needed
b. UCC Firm Offer
i. Merchants
ii. Singed by Merchant
iii. 90 Day Limit
c. Unilateral Contract, once the Act Starts
i. Promise for an Act versus
ii. Bilateral Contract -Promise for a promise
2) How to Accept an offer
(a) Silence
(b) Performance
(c) Mail
1) Common law Mirror Image Rule
(a) Acceptance must Mirror the Offer
3) Common Law Mailbox Rule
(a) Acceptance is effect when SENT
(i) Exception
A If a Rejection letter is sent first, then an Acceptance is sent, which ever arrives first wins
4) UCC Acceptance
(a) Construed Liberally under the UCC
1) Consideration
(a) Bargained for Exchange (peppercorn)
2) Illusory Promise
(a) Party Making the Offer retains control
(i) Not proper consideration
3) Gifts
(a) Promise to give a gift is NOT valid consideration (Future – not ok)
(b) Already given gift IS valid consideration (Past - ok)
4) Past Consideration or Moral Consideration
(a) Not valid consideration
5) Promise to pay debt barred by Statute of Limitations
(a) Is Valid Consideration
6) Promise to pay debt discharged in bankruptcy
(a) Is Valid Consideration
7) Forbearance to sue
(a) Promise not to sue, is valid consideration
8) Promissory Estoppel
(a) Promise that induces you to rely to your detriment
