Formation: Offers Flashcards
Three Requirements for a Binding Contract
- Mutual assent
- Consideration
- Power of acceptance in offeree
Definition: Offer
objective manifestation of a willingness by offeror to enter into agreement that creates power of acceptance in offeree
Factors: Offer (5)
- Intent
- Knowledge
- Terms
- Language
- Invitation to Deal
Intent–a statement is an offer only if:
- person to whom it is communicated could reasonably interpret it as an offer
- expresses present intent of a person to be legally bound by a K
Definition: Knowledge
offeree must know of the offer in order to have the power to accept
Definition: Terms
must be certain and definite or the K fails for indefiniteness
Essential Terms Under Common Law
parties, subject matter, price, quantity (all must be covered in K)
True or False: Under common law, if the parties intended to create a K, the court may simply supply the missing terms.
True.
Essentials Terms Under the UCC
quantity
Exception to Essential Terms Under the UCC
Requirements or output contracts; the UCC implies “good faith.”
True or False: Under the UCC, a contract is not formed even if both parties intended to contract and gave a reasonably certain basis for remedy.
False.
Definition: Language
offer must contains words of promise, undertaking, or commitment, and be targeted to a number of people who would actually accept
Bilateral Contract
if a return promise is requested
Unilateral Contract
if an act is requested
Definition: Invitation to Deal
advertisements are only an invitation to receive offers (but may qualify as an offer if sufficiently specific and limit who can accept or if associated with a stated reward)
