Making a Deal

Question 1

Contract

Answer 1

Promise/ promises which the law will enforce

Question 2

Objective Theory

Answer 2

(1) Would a reasonable Person in the promisee’s position understand from the promisor’s words and conduct an intent to be bound?
(2) Did the promissee in fact so believe?

Question 3

Offer

Answer 3

manifestation of willingness to enter into a bargain, made as to justify another person in understanding that his assent to that bargain is invited and will conclude it

Question 4

Price Quote Rule

Answer 4

mere quotation or statement of price and invitation to enter into negotiations are not offers which may be turned into binding contracts upon acceptance

Question 5

Advertisement Rule

Answer 5

Advertisements of goods are not ordinarily intended or understood as offers to sell

Question 6

Rejection

Answer 6

Manifestation of intention not to accept an offer; terminates power of acceptance

Question 7

Direct Revocation

Answer 7

power of acceptance terminated when offeree receives from offeror manifestation of intent NOT to enter into contract

Question 8

Indirect Revocation

Answer 8

Power of acceptance terminated when:

a) offeror takes definite action inconsistent with intention of contract; AND
b) offeree acquiers reliable information to that effect

Question 9

Lapse

Answer 9

no definite time stated -> reasonable time under circumstances

Question 10

Effect of False Recital

Answer 10

written acknowledgment of receipt of consideration merely creates rebuttable presumption that consideration passed

Question 11

UCC Firm offer rule

Answer 11

offer by merchant (signed) is not revocable for lack of consideration, during time stated, or reasonable time after (no longer than 3 years)

Question 12

Acceptance

Answer 12

manifestation of assent to the terms thereto made by the offeree in a manner invited or requested by the offeror

Question 13

promissory acceptance

Answer 13

notice of acceptance required

Question 14

mail box rule

Answer 14

manifestation of mutual assent complete when acceptance leaves offeree’s possession

Rejection and Revocation not valid until received
- turns off “mail box rule” for one who revokes/rejects

Question 15

acceptance by performance

Answer 15

notice not required

Question 16

Misunderstanding

Rest. 20

Answer 16

(1) no mutual assent if both parties attach materially different meanings

Question 17

UCC 2-207

Answer 17

(1) A definite and seasonable expression of acceptance operates as an acceptance even though it states additional or different terms. Unless acceptance is expressly made conditional on assent to additional terms
(2) additional terms are proposals for addition to K. between MERCHANTS terms are part of K unless:
- offer expressly limits acceptance
- they materially alter it, or
- notification of objection is given in reasonable time after notice
(3) conduct by both parties recognizing existence of K is sufficient although writings of parties do not otherwise establish a K

Question 18

Indefiniteness (Common Law)

Answer 18

no K unless terms are reasonably certain

Question 19

Indefiniteness (UCC)

Answer 19

even if terms are left open, K for sale does not fail for indefiniteness if parties have intended to make K and there is reasonably certain basis for giving an appropriate remedy