Modules 4-5 Flashcards
What does an offer create for the offeree?
A power of acceptance that permits him to transform the offer into contractual obligation. The acceptance terminates the power of revocation that the offer usually has
What is the objective theory?
Majority rule that the intent of the parties is not relevant when determining whether a party has given assent to enter into a contract. Just look at their words, conduct and demeanor. The appearance of a bargain is enough
Does a contract have to be in writing?
No, spoken words or conduct that suggest a contract was entered into are enough
What is consideration?
The thing you have promised ie) money, an act, forbearance. Something bargained for and received by a promisor from a promisee.
What is acceptance?
A voluntary act of the offeree to create a set of legal relations called a contract
Must there be consideration in order for an agreement to be enforceable?
Yes it is necessary
How do you create a contract?
The offeree must exchange the requested performance or promise for the offeror’s promise
What happens when you sign a contract without reading it?
You’re bound by its terms
Do all contracts require a signature?
No, you can accept some offers without a signature ie ) passenger tickets, insurance policies
Does the small print on a parcel check create acceptance of an offer?
No because a reasonable person could not expect to find contract provisions on a personal check
Must a person know about an offer in order to accept it?
Yes, otherwise they have no claim
What does identical cross-offer mean?
If Amy mails an offer to Bob to sell something and at the same time Bob mails an offer to Amy to buy that exact thing for the same terms
Do identical cross-offers create a contract?
A) classical view: no contract
B) Second restatement: there is a contract because there’s both subjective intent to the same deal and objective evidence of that intent
C) first restatement: The whole consideration requested by an offer must be given after the offeree knows of the offer
D) modern view: if the offeree completes performance with knowledge of the offer that is sufficient
What is a rolling contract?
Payment before revelation of full terms ie) Airline tickets, insurance policies
What is a direct seller?
Someone who manufactures and sells directly to the customer
What is a reseller?
When a product is manufactured, sold to a reseller like Costco, and then sold to the customer
What is a warranty?
An offer in the box by the manufacturer that the purchaser may accept during the warranty period. This constitutes an offer that the customer accepts by bringing an action for breach of contract
What is shrinkwrap?
Package that is wrapped in plastic and contains a printed warning saying, “if you unwrap this disc, you will have consented to the terms of the license created herein” –> from the licensor
What is clickwrap?
When you insert a disc or download something and you are asked to click “I agree to the terms” before you can continue
How do you prove intention to accept in a bilateral contract?
Subjective intent is irrelevant (unless the person knows or has reason to know that the offeree did not intend to accept
Do you prove intention to accept any unilateral contract?
A) traditional view: subjective intent is irrelevant.
B) The intent to accept is presumed in the absence of words or conduct indicating the contrary
If several motives induce an offeree to perform are they still able to prevail?
Yes because it is enough that the offer was some part of the reason for their performance
Who can accept an offer?
Only the person to whom it was made (or an authorized agent)
Can an offeree transfer the power to accept?
No, if Alice makes an offer to Bob, Kerry cannot except