Offer and Acceptance Flashcards
Whether [one party] made [another party] an offer capable of acceptance?
An offer is a proposal by one party to the other, manifesting a willingness to enter into a bargain and made by words or conduct that the other party is justified in believing that her/his assent to that bargain is invited, if given, will create a contract.
Whether the offer called for acceptance by a return promise or by performance? (Bilateral vs. Unilateral Contract)
The acceptance must be in the same manner requested or authorized by the offeror because the offeror is the master of the offer. If it is not specified on the offer, an offer is interpreted as inviting the offeree to accept either by: 1) an exchange of promises (bilateral contract) or
2) the exchange of a promise for performance (bilateral contract). However, some offers may only be accepted by performance, the doing of the requested act, and not a return promise.
whether offeree had begun performance?
If the offer calls for acceptance by return performance, once the offeree begins performance, the offer becomes irrevocable. The offor’s duty to render her/his return performance is conditional on the offeree’s completing performance as specified in the offer but once performance has begun, the offeror is no longer free to revoke but must allow the offeree to complete performance within the time specified or within a reasonable time. Irrevocability takes effect only when actual performance is commenced, not when preparations for performance are begun.
Assuming that a court fails to find a valid offer and acceptance, party can seek recovery based on reliance theory, the doctrine of promissory estoppel.
This doctrine allows a contract to be binding if it was
foreseeable that the offeree would be induced by the promise, the offeree was induced by that
promise, and the offeree relied upon that promise to her detriment.
Advertisements (prof.)
The general rule is that an advertisement is not an offer. However, there are certain exceptions
that exist when the terms are certain, definite, and include a date of expiration.
UCC (prof.)
The UCC governs all sales of goods under Article 2. A good is defined as any moveable item at the time of contract formation, as to be distinguished from a service. If the UCC applies, any issue that arises that is not covered by the UCC will be supplemented by common law, including provisions of the Restatement (Second) of Contracts that jurisdictions have adopted. In this case, the dispute is over a [item], which falls under the category of a “good” in the UCC. This dispute will be governed by Article 2 of the UCC.
