Part 2 Flashcards
What does a valid contract require?
A valid contract requires mutual assent: which consists of:
(1) an offer and acceptance
(2) and consideration.
AND (3) no defenses to formation.
What is an offer?
An offer is a manifestation of willingness to
enter into a bargain.
What does an offer require?
An offer requires :
(1) a demonstration of intent to enter into a contract, (2) definite and certain terms,
(3) and communication to the offeree
What is intent in this context
The words or conduct of the offeror (the person making
the offer) must demonstrate a present intent to enter into a contract.
What can be used to help determine
the offeror’s intent?
Language:
The language used by the offeror can help
establish the offeror’s intent.
Precise language, such as“I offer,” is not required.
The objective standard of how a reasonable person would interpret the language
is used to determine intent.
Context:
The context in which an offer is made can help
establish intent.
Is an offer made in jest a valid offer?
An offer made in jest is not a valid offer.
Does a preliminary negotiation present willingness to
contract
Not necessarily. A party’s language may invite
preliminary negotiations but lack present willingness to
contract (e.g., “I’m thinking of selling my car.” or “I’d
consider taking $5,000 for my car.”)
Name one example of something that is likely to be a
preliminary negoitation
Solicitation of bids is likely preliminary negotiations.
How would you classify an advertisement?
Advertisements are typically invitations to deal and
not offers to sell.
What’s the exception to the advertisement rule?
Ads containing words of commitment
and where the offeree can be identified with
specificity can be sufficiently definite to be an offer.
Are Catalogs with specified goods and services typically an offer or an invitation to deal?
Catalogs with specified goods and prices are typically
an invitation to deal, not an offer.
When can Rewards and auction bids be considered offers?
Rewards and auction bids: can be offers if it is clear who
can accept/win.
Why must the offer contain definite and certain terms?
Definite and certain terms:
The offer must contain definite and certain terms so that the content of the bargain can be determined and enforced.
(The parties can communicate back
and forth, which as a whole provides the essential terms, and the court may supply some missing terms.)
Elaborate on the definite and certain terms (QTIPS)
a. Quantity: The quantity term must be stated or
ascertainable.
b. Time of performance can be a missing term supplied by the court as a “reasonable” time.
c. Identity of the parties: The parties must be identified.
d. Price: Price must be stated for real estate contracts. However, the UCC provides “reasonable price at the time of delivery” if missing.
e. Subject matter must be identified clearly.
