Making A Contract Flashcards
Can there be further negotiations or discussions required from an offer?
No
What is an offer?
An expression of willingness to contract on certain terms. It must be made with the intention that it will become binding upon acceptance.
What is a statement of intention?
Where one party states he intends to do something. Unlike an offer; will do something
What is a supply of information?
To enlighten the other. Not to be acted upon
What is an invitation to treat?
An invitation of willingness to conduct business
What is an example of invitation to treat?
The display of goods
What must there be for a contract to be formed?
Acceptance of an offer. Agreement to each if the terms
How can acceptance take place?
By words or conduct
What happens if an offeree attempts to add new terms?
It is a counter offer. This implies a rejection of offer
Where the offeree queries/ seeks more info, what happens?
Nothing. Not accepted or rejected
What is the battle of forms?
Where offers are fired back and forth. The last shot wins
When is acceptance effective?
Acceptance is not effective until it is communicated to the offeree.
Can acceptance be made through silence as conduct?
No
Can the offeree use a different method of acceptance is there a contract?
Yes. As long as the acceptable by that method is no less advantageous to the offeror.
When is there a legal commitment?
When a contract has been formed. Either party can change their mind before then
What is necessary in revocation of an offer?
The communication of the revocation
Who must the communication if revocation be directed to?
Not the offeree. A reliable source is sufficient
What happens when a condition if the offer is not fulfilled?
The offer terminates
What is a reasonable timeframe in terms of a lapse of offer?
It will depend on the circumstances of the case
What does consideration do?
Gives the badge of enforceability to agreements.
When is consideration seen to have more impact?
Where there is a promise to do something at a later date
What is a rebuttable presumption?
A presumption by the courts as to a certain state of facts until proved otherwise
Intention…
Without intention to create legal relations there will be no contract
What happens if terms cannot be determined with certainty?
There is no contract
If the agreement does not contain all necessary terms
It will not be an enforceable contract
What makes a contract?
Offer/acceptance Consideration The parties intent to create legal relations Terms are certain Agreement is complete
