lesson 1: consensus Flashcards
consensus – 2 parts
offer and acceptance
definition of offer from slides
expression by one party of his assent to certain definitive terms, which looks forward to acceptance by the other on the same terms
offer requirements (3)
must be complete
must be an outward expression
offer comes before acceptance
offer must come before….
acceptance
consensus is ….
objective
quotation of price is an …
invitation to treat/ to make an offer
advertisement is usually not an
offer – invitation to treat instead
display of goods and price tags on them are mere invitations to treat and turn into offers …
at the cashier
a statement of the lowest price is …
NOT an offer
tenders
inviting parties to a bid
tenders = …
bids = offers
tenders involve two contracts
contract a
contract b
contract A is …
the tender process and unilateral
contract A is with
bidder and owner
contract a is …
always formed by submission of bid, many A’s
contract a is a …
submission and consideration of bids
once a bid is submitted it will not…
be revoked and bids are treated fairly
contract b is the
main contract and bilateral
contract b is between …
the owner and one selected bidder
2 problems with tenders
- offers can be revoked before acceptance
- owners are not obligated to accept offers
what is privilege clause?
Lowest of any bid should not be accepted
unilateral contract def
acceptance = performing the act requested in contract
performance constitutes acceptance
bilateral contract def
promise for a promise
4 issues in unilateral contracts
mixed motives for performing the act
offeree unaware of offer
acceptance performed out of sight
offeror retracks after partial performance
bids take a long time to…
prepare and consider
and are competitive
when there is acceptance, motives..
do not matter
offeree must know of the offer to.. ____, if not….
accept it
no contract if unaware of reward
performance of act is …
acceptance
courts favour bilateral contracts in..
commercial cases
unilateral offer cannot be revoked if …
performance is ongoing
acceptance must be communicated to be …
effective
offer must be accepted within a …
reasonable time
offer can be revoked ____ anytime before acceptance, and revocation can be communicated by a ____
at anytime, and by a third party
slient acceptance is …
not enough
offeror controls …
acceptance terms
circumstances where silence can constitute acceptance
existing agreement that silence will constitute a future offer
(prior agreements)
long standing relationship where your silence always constitutes silence and agrees it works
(long-standing relationships)
counteroffers =
rejection of original offer and terminates original offer
rejection + new offer =
no contract
cross - offers are not …
an acceptance of each other
additional negotiations =
no consensus
ongoing negotiations mean …
no final agreement
post box acceptance rule
acceptance is effective WHEN MAILED not when received
post box acceptance rule only applies to
acceptances its in the name
digital acceptances follow …
general rule (effective when received)
rule does not apply to …
faxes or e-mails
