K Formation Part 1 Flashcards
What is mutual assent?
Mutual assent is the manifestation of agreement between parties, assessed by a reasonable person standard.
What does mutual assent require?
It requires looking at the parties’ conduct, absent fraud or misconduct, to determine if there was a meeting of the minds.
What is the mode of assent according to § 22?
The manifestation of mutual assent ordinarily takes the form of an offer by one party followed by acceptance by the other party.
What constitutes an offer?
An offer is an expression of promise or commitment to enter into a contract, containing definite and certain terms.
What is required for an offer to be valid?
An offer must be communicated to the offeree and invite acceptance, with clear and definite terms.
What is a firm offer?
A firm offer is irrevocable for a specified time, made by a merchant, in writing, and signed.
What happens if no time is stated for a firm offer?
If no time is stated, the firm offer is irrevocable for a reasonable period, not exceeding three months.
What are advertisements considered in contract law?
Advertisements are generally invitations to bargain, not offers.
What are the methods of termination of the power of acceptance?
The power of acceptance can be terminated by rejection, revocation, counteroffer, lapse of time, or death/incapacity.
What is required for acceptance to be valid?
Acceptance must be an express or implied manifestation of assent to the terms of the offer, made by the person to whom it is directed.
What is the mailbox rule?
Acceptance is effective upon dispatch when sent by mail, regardless of whether it reaches the offeror.
What happens if an offeree rejects an offer before accepting?
If an offeree rejects first, the mailbox rule does not apply; the first communication received is effective.
What distinguishes a unilateral contract from a bilateral contract?
A unilateral contract requires full performance for acceptance, while a bilateral contract involves reciprocal promises.
What is the effect of starting performance in a unilateral contract?
Starting performance in a unilateral contract makes the offer irrevocable and serves as consideration.
