Offers Flashcards
What is an offer?
a manifestation of willingness to enter into a bargain that invites and justifies acceptance
What are examples of things that are not considered valid offers?
preliminary negotiations, advertisements, and jokes
What are examples of preliminary negotiations?
proposals, price quotes, and invitations to bed
When is an advertisement considered a valid offer?
when it contains a promise to sell items in a reasonably certain manner that leaves no room for negotiation (specifies time, date, types of items)
An offer made in jest is not valid if:
the offeree knew or should have known that the offer was a joke
What are five ways in which an offer is terminated?
revocation, counteroffer, death, legal incapacity, lapse of time
An offeror’s revocation must be:
communicated to the offeree
What are two types of offers that cannot be revoked?
option contracts and firm offers
When is an option contract created?
When the offeror gives the offeree the option to accept the offer for a limited time and the offeree provides consideration to the offeror
When is a firm offer created?
When a merchant provides a signed writing assuring the offeree that an offer to buy or sell goods will be held open for a limited amount of time
What is a counteroffer?
an offer, made by the offeree to the offeror, that proposes different terms relating to the same matter as the original offer
the offeree refuses the offer
rejection
What is a counteroffer?
the offeree makes a counteroffer proposing a different bargain regarding the same subject
What are 6 ways to terminate an offer?
revocation, counteroffer, rejection, lapse of time, revocation, death or incapacity, destruction of subject matter
What is an option contract?
an option guarantees, in exchange for something of value, that an offer will not be revoked for a specified amount of time (an offeree provides consideration in exchange for irrevocability) COMMON LAW
What is a firm offer?
a firm offer guarantees that a merchant will not revoke an offer to sell goods for a specified amount of time UCC
To form a contract, the offer must be ______, ________ to the offeree, and must not have _______ prior to acceptance
valid; communicated; terminated
For an offer to contain reasonably certain terms, typically it identifies the ______, descries the _____ of the agreement, and includes some sort of _______
parties; subject; price term
Does asking if the offeror might accept different terms constitute a counteroffer?
No if a reasonable person would know the original offer had not been rejected
When a reasonable or specified amount of time has lapsed without acceptance, an offer _______.
terminates
Revocation becomes effective when
the notice actually received by the offeree
______ and _____ made in a signed writing are irrevocable
firm offers; option contracts
A ___ ____ guarantees, in exchange for something of value, that an offer will not be revoked for a specified amount of time
option contract
A _____ _____ guarantees that a merchant will not revoke an offer to sell goods for a specified amount of time (does not require consideration)
firm offer
The offeror of a ______ contract may not revoke the offer after the offeree has begun performance
unilateral
Once the offeree has begun performance, she is entitled to a ______ ___ for completion before the offeror may revoke
reasonable time
In a unilateral contract, a contract is not formed until
performance of the offeree is complete
An offer will automatically terminate when the subject matter of the offer is _____
destroyed
When can the offeror not revoke an offer under detrimental reliance?
When the offeror should reasonably expect that the offeree may change position or do something in preparation for performance in detrimental reliance on the offer remaining open (may revoke after a reasonable period of time has passed)
