Is there a contract? Flashcards
What must there be in order for a contract to form?
An offer, acceptance, and consideration
What is an offer?
An express manifestation of objective intent to be legally bound under a particular set of terms
What are the 3 factors of an offer?
Clear Offeree
Clear manner of acceptance
Clear Subject Matter
What are the two types of offer?
A Unilateral offer
A Bilateral offer
What is a Unilateral offer?
When the offeror makes a promise to someone for a specific performance - a unilateral offer cannot be withdrawn once the offeree begins performance
What is a Bilateral offer?
When both the offeror and the offeree makes a promise, i.e an exchange of $1000 for a car.
What are the additional exceptions to the validity of an offer?
Death of the offeror
After the passage of a ‘reasonable time’
after the passage of the time period stated in the offer
counter-offer
rejection
What is acceptance?
the unequivocal agreement to the exact terms of the offer
What is the mirror image rule?
What the offeree is agreeing to must be exactly what the offeror offered/proposed
To avoid it being a counter-offer
What is consideration under Bargain Theory?
that which each party is giving to induce the other party to enter into the contract
What is consideration under benefit-detriment theory?
if a party undergoes an agreement in which they forgo a legal right
