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
