offer and acceptance

Question 1

what is a contract?

Answer 1

promise or set of promises between two or more competent persons which is legally binding and is legally enforceable

Question 2

basic elements of a contract

Answer 2

mutual assent, offer, acceptance, consideration

Question 3

define goods

Answer 3

all things that are moveable at the time of ID to the contract for sale

Question 4

when is UCC applicable?

Answer 4

transactions for goods - not just merchants!

Question 5

when is CISG applicable?

Answer 5

international transactions for goods, merchants only!

Question 6

<p>

| define merchant</p>

Answer 6

<p>
person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction</p>

Question 7

define mutual assent

Answer 7

serious intention to be bound

Question 8

define offer

Answer 8

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

Question 9

requirements of an offer

Answer 9

essential, definite terms, including subject matter, time for performance, price to be paid, etc.

Question 10

when is an offer effective?

Answer 10

upon receipt

Question 11

define offeror

Answer 11

party that puts forth the proposal - master of the terms of the offer

Question 12

when can offeror revoke offer?

Answer 12

power to revoke anytime before valid acceptance occurs

Question 13

define offeree

Answer 13

party that receives proposal for a contract

Question 14

<p>

| powers of offeree</p>

Answer 14

<p>

| power of acceptance, rejection, or counter offer</p>

Question 15

five ways to terminate offer before acceptance

Answer 15

rejection, counteroffer, lapse of time, revocation by offeror, or death/incapacity of offeree or offeror

Question 16

when can an offer be revoked under CISG?

Answer 16

if revocation reaches offeree before he has dispatched acceptance

Question 17

define acceptance

Answer 17

manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer

Question 18

when is acceptance valid?

Answer 18

mailbox rule - effective upon dispatch

Question 19

how to accept offer under Restatements?

Answer 19

mirror image rule - respond to offer in the requested manner

Question 20

Restatements - how to accept offer if no manner is specified in contract?

Answer 20

original method by which you received the offer

Question 21

how to accept offer under UCC/CISG?

Answer 21

in any reasonable manner, by any reasonable means

Question 22

when is acceptance by silence valid?

Answer 22

where an offeree takes benefit of offered services with reasonable opportunity to reject, knowing they were offered with expectation of consideration, or where it is reasonable due to previous dealings, or if stated in offer

Question 23

define a unilateral contract

Answer 23

one sided - promise for performance of specific act

Question 24

how to accept a unilateral offer?

Answer 24

acceptance via performance of requested act

Question 25

classical/modern views of accepting a unilateral contract?

Answer 25

classical is completed performance, modern is beginning or substantially performing the act

Question 26

how is an option contract held open under the classical view?

Answer 26

actual consideration or complete performance of requested act

Question 27

how is an option contract held open under modern view?

Answer 27

purported consideration or beginning/substantially performing requested act

Question 28

what’s an option contract under UCC called?

Answer 28

Firm Offer - by merchant only

Question 29

what are the terms of an option contract under CISG?

Answer 29

can’t be revoked if it indicates that it’s irrevocable

Question 30

what are the requirements of an option contract under modern view of Restatements?

Answer 30

signed by offeror, in writing, recites purported consideration

Question 31

what are the requirements of a UCC firm offer?

Answer 31

signed writing, states time kept open (reasonable time, not more than 3 months), agreement must be separately signed by offeror

Question 32

what are the requirements of an option contract in CISG?

Answer 32

states fixed time for acceptance or otherwise states that it’s irrevocable

Question 33

which document governs an accepted contract under Restatements?

Answer 33

last shot rule - last paperwork through the door

Question 34

which document governs an accepted contract under UCC?

Answer 34

qualified acceptance - Battle of the forms

Question 35

what is the point of “qualified acceptance” under UCC?

Answer 35

method of resolving acceptance based on additional/different terms between merchant’s forms

Question 36

what does UCC 2-207(1) say about different or additional terms?

Answer 36

operates as acceptance even thouh it states additional/different terms from those offered unless acceptance is expressly made conditional on assent to the additional or different terms

Question 37

what does UCC 2-207(2) in Battle of Forms say about additional terms?

Answer 37

additional terms are construed as proposals for addition to the conract - between merchants, such terms become part of the contract unless the offer expressly limits acceptance ot the terms of the offer, they materially alter it, or they’re objected to in a reasonable time

Question 38

what are the terms of a Contract Through Conduct in the Battle of the Forms UCC 2-207(3)?

Answer 38

conduct by both parties which recognizes existence of a contract is sufficient to establish a contract - terms consist of those terms on which the writings of the parties agree, together with supplementary terms (knock out rule)

Question 39

when is the knock out rule used for UCC?

Answer 39

when conduct by both parties recognizes the existence of a contract