Mutual Assent- Common Law

Question 1

Communication of a Present Commitment.

Answer 1

The requirement that parties express a present commitment rule for mutual assent.

Question 2

Two requirements to Constitute an Offer:

Answer 2

i. An outward manifestation; and
1. [The manifestation can be oral, written or made via conduct.]
ii. The signal that acceptance will close the deal.
1. [Communications that withhold the privilege of further
assent fall short of constituting an offer.]

Question 3

R. 2d §24. Offer Defined.

Answer 3

i. Manifestation of willingness to enter a bargain, in a manner that supports the other party’s understanding that his assent to the bargain is invited and will conclude the agreement.

Question 4

R. 2d §50. Acceptance of Offer (by Performance or Promise)

Answer 4

i. Acceptance is a manifestation of assent from the offeree to the
terms of the agreement
1. Must be made in a manner invited/required by the
offer.
ii. Acceptance by performance at least part of what the offer
requests be performed; includes acceptance by a performance
which operates as a return promise.
iii. Acceptance by promise requires the offeree to complete every
act essential to the making of the promise.

Question 5

Subjective Intention v. Objective Intention:

Answer 5

i. Inward thoughts or subjective intentions are irrelevant unless they are reasonably apparent to the other party.

Question 6

Subjective Intention:

Answer 6

What the person claims he meant by the words he used.

Question 7

Objective Intention:

Answer 7

How a reasonable person would understand the words the person used.

Question 8

LUCY V ZEHMER CASE LAW

Answer 8

RULE: When a person’s words and actions, judged under a
reasonable standard, demonstrate an intent to agree to a contract, his/her unexpressed subjective state of mind is immaterial. Must look to the outward expression of a person’s manifestation rather to his secret and unexpressed intention.

Question 9

HARVEY V FACEY CASE LAW

Answer 9

RULE: An answer to an inquiry is not an implied contract to sell
at that price.

Question 10

Certainty of Terms.-R. 2d §33. Certainty.

Answer 10

1. A contract cannot be formed unless the terms are reasonably certain.
   a. Reasonably certainProvide a basis for determining a breach/appropriate remedy for breach.
2. Lack of terms may show a manifestation is not intended.

Question 11

Essential Terms (QTPPPS):

Answer 11

1. Quantity
2. Parties to the contract
3. Price
4. Subject matter

Question 12

Non-Essential Terms:

Answer 12

1. Time for performance
2. Place for performance