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Contracts & Sales > Mutual Assent -- Offer & Acceptance > Flashcards

Mutual Assent -- Offer & Acceptance Flashcards

1
Q

An offer is…

A

a manifestation of an intention to be bound by the contract.

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2
Q

Advertisements are generally…

A

not considered offers, just invitations to deal.

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3
Q

Advertisements can be offers if the advertisement contains a…

A

(1) promise;
(2) with certain and definite terms;
(3) where the offeree is clearly identified.

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4
Q

An offer usually must include…

A

(1) name of offeree;
(2) subject matter of offer; and
(3) price to be paid.

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5
Q

Land sale offers must include…

A

(1) price terms; and
(2) description of the land.

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6
Q

A requirements contract exists when…

A

the buyer promises to buy all the goods the buyer requires from the seller.

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7
Q

An output contract exists where…

A

the seller promises to sell all the goods the seller produces to the buyer.

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8
Q

Can a buyer increase its demand to the seller?

A

Yes – but only to a reasonable degree in line with their prior demands.

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9
Q

An employment contract with an unspecified term of years is construed as creating…

A

a contract terminable at will by either party.

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10
Q

For services contracts, the offer must include…

A

the nature of the work.

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11
Q

The four methods of offer termination are:

A
  1. Lapse of time;
  2. Revocation;
  3. Rejection;
  4. Death.
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12
Q

An offer may be terminated if not accepted within a reasonable time (or the time specified), this is called…

A

lapse of time.

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13
Q

Indirect rejections of offers can occur through:

A
  1. Rejection counteroffers;
  2. Conditional acceptances;
  3. Additional terms added to common law offers.
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14
Q

Counteroffers are…

A

offers made by the offeree to the offeror that contain the same subject matter as the original offer, but differ in terms.

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15
Q

Does bargaining terminate the original offer?

A

No – mere bargaining will not.

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16
Q

An express rejection is a…

A

statement by the offeree that they do not intend to accept the offer. Such a rejection will terminate the offer.

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17
Q

A mere bargaining inquiry can be distinguished from a counteroffer by asking, …

A

Would a reasonable person believe that the original offer had been rejected?

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18
Q

A rejection is effective when…

A

received by the offeror.

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19
Q

When an acceptance is made expressly conditional on the acceptance of new terms, it is a…

A

rejection of the offer.

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20
Q

An option is a contract to…

A

keep an offer open.

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21
Q

A rejection of a counteroffer to an option contract (does/does not) constitute a termination of the offer.

A

Does not; UNLESS the offeror has detrimentally relied on the offeree’s rejection.

22
Q

A revocation is a…

A

retraction of an offer by the offeror.

23
Q

An offeror may directly revoke an offer by…

A

communicating the revocation to the offeree.

24
Q

An offeror can revoke its offer…

(timeline)

A

any time before acceptance of the offer.

25
Q

An offer may be revoked indirectly if the offeree receives:

A

(1) correct information;
(2) from a reliable sources;
(3) of acts of the offeror that would indicate to a reasonable person that the offeror no longer wishes to make the offer.

26
Q

A revocation is generally effective when…

A

received by the offeree.

27
Q

Where revocation is by publication, it is effective when…

A

published.

28
Q

Offers can generally be revoked at will by the offeror, even if he has promised not to revoke for a certain period, except in the exceptions of:

A
  1. Option contracts;
  2. Merchant Firm Offers;
  3. Detrimental foreseeable reliance; or
  4. Beginning performance in response to a unilateral contract offer.
29
Q

An option contract is a contract in which…

A

the offeree gives consideration for a promise by the offeror not to revoke an outstanding offer.

30
Q

Under Article 2, an offer can be irrevocable if:

A

(1) a merchant;
(2) offers to buy or sell goods in a signed writing; and
(3) the writing gives assuances that the offer will be held open.

31
Q

In a merchant firm offer, if there is a lack of consideration during the time stated…

A

the offer is still not revocable for this lack of consideration, but the time period cannot exceed 3 months.

32
Q

Detrimental reliance occurs when…

A

the offeror could reasonably expect that the offeree would rely to their detriment on the offer, and the offeree does so rely.

33
Q

An offer for a true unilateral contract becomes irrevocable once…

A

performance has begin.

34
Q

An offeror in a unilateral contract must give the offeree…

A

a reasonable time to complete performance.

35
Q

Substantial preparations to perform (do/do not) make an offer irrevocable.

A

Do not – but they may constitute detrimental reliance sufficient to make the offeror’s promise binding to the extent of detrimental reliance.

36
Q

Events that will terminate an offer by termination of law are:

A
  1. Death or insanity of either party;
  2. Destruction of the proposed contract’s subject matter; OR
  3. Supervening illegality.

(effective when occuring)

37
Q

Does a contract terminate due to death if it has already been accepted?

A

No… the estate will be responsible for the obligations.

38
Q

An acceptance is a…

A

manifestation of assent to the terms of the offer.

39
Q

An offer for a bilateral contract may be accepted by..

A

either a promise to perform or by beginning the performance.

40
Q

If an offer provides that it may be accepted only by performance (unilateral), then it will not be accepted until…

A

performance is completed.

41
Q

An offeree for a unilateral contract is not obligated to…

A

complete the performance merely because they have begun performance.

42
Q

Under the UCC, shipment of a nonconforming good is considered…

A

an acceptance, creating a bilateral contract, as well as a breach of the contract.

43
Q

An accomodation offered in place of a noncomforming good is considered…

A

a counteroffer.

44
Q

Generally, silence is not considered…

A

an acceptance.

45
Q

Under common law, a purported acceptance must…

A

mirror the offer terms exactly.

46
Q

HYPO: LL sends T a signed lease that says nothing about pets. Tenant adds, “Tenant may keep a pet,” signs the lease, and returns it to LL. Has T accepted LL’s offer?

A

No – T has violated the mirror image rule, acceptance must mirror the terms of the offer exactly.

(rejection & counteroffer)

47
Q

Under Article II, an offeree’s additional terms are not part of the contract unless…

A

(1) It’s not material, and
(2) Offeror doesn’t object.

48
Q

Material changes (under Article II) are terms that…

A

cause hardship or surprise.

49
Q

Disclaiming warranties (are/are not) considered material changes.

A

are

50
Q

Industry customs (are/are not) material changes.

A

are not.

51
Q

The mailbox rule states that…

A

acceptance by mail or similar means are effective at the moment of dispatch.

Contracts & Sales (10 decks)

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