Offer, Acceptance, Consideration Flashcards
Includes formation, revocation, exceptions to consideration, etc
What is an offer?
Objective manifestation of a willingness to enter agreement and create the power of acceptance.
What is acceptance?
Objective manifestation by offeree to be bound by terms of the offer.
What is consideration?
Evidence of a bargained-for exchange where each party suffers a legal detriment or benefit.
What is an illusionary promise?
An illusory promise is one that essentially pledges nothing because it is vague or because the promisor can choose whether to honor it.
Such a promise is not legally binding.
Mailbox Rule
The mailbox rule states that an acceptance that is mailed within the allotted response time is effective when sent, rather than upon receipt.
How do revocations work under the Mailbox Rule?
Revocations are effective upon receipt.
What is required of a valid contract?
1) Offer
2) Acceptance
3) Consideration
4) No defenses
5) SOF, if applicable
What is required for modification of a contract?
Common Law: Generally need additional consideration; cannot violate the preexisting rule
UCC: All that is required is good faith.
ESSAY TIP: What should you discuss abut when terms of the contract may be being changed after formation?
Discuss modification!
What is a merchant under the UCC?
A merchant is one who
1) Regularly deals in the type of goods involved in the transaction or
2) Has specialized knowledge of the goods subject to the contract.
What is a time is of the essence clause?
Requires strict compliance with a specific date.
Rare; usually must be VERY obvious.
What is the doctrine of promissory estoppel?
Promise can be binding if
1) Promisor reasonably expected to induce action or forbearance on part of a third person
2) Promisee actually does so
3) Injustice can only be avoided by enforcement of the promise
UCC: Battle of the Forms/Additional Terms
Under UCC § 2-207, as between merchants additional terms become part of the contract
unless they
1) Materially alter the contract
2) The offeror objects within a reasonable time
3) Or the offer is limited to its terms.
ESSAY TIP: If there is no express agreement between two parties, what should you argue?
Implied in Fact contract!
When are advertisements offers?
Advertisements generally are considered invitations to receive offers from the public, unless associated with a stated reward.
An advertisement that is sufficiently specific and limiting as to who may accept may qualify as an offer.
MUST STILL HAVE ESSENTIAL TERMS
