R6 Flashcards
Methods of Contract Formation
- express (oral or written)
- implied-in-fact (conduct)
- quasi-contract (prevents unjust enrichment)
Unilateral Contract
one promise; contract is not formed until the other party has performed
Bilateral Contract
two promises
Executory vs. Executed Contracts
Executory - remain to be performed
Executed - performed all of the duties
Items to which common law pertains
R eal estate
I nsurance
S ervices
E mployment
Three Common Elements in a Contract
- agreement made up of offer and acceptance
- consideration
- no defenses
Offer Requirements
- intent
- definiteness and certainty
- communication to the offeree
Which theory does contract law follow?
Objective theory
Are advertisements considered offers?
Generally, they are considered invitations to make offers; exception when the number of offerees is explicitly mentioned
Terms must be definite and certain. What does this mean for UCC and for Common Law?
UCC - only quantity needs to be definite
Common - all aspects must be definite
If the offeree has no knowledge of the offer, can he/she accept?
no knowledge, no acceptance
Three Methods to Terminate Offer
- rejection
- revocation
- automatic (process of law)
When can an offeror revoke an offer?
any time before acceptance by communicating to the offeree
!*can even revoke an offer when a promise was made to keep it open (unless it is an option)
Limitations on Offeror’s Power to Revoke an Offer
- option contract
- unilateral contracts
- Merchant Firm Offers (rain checks)
Methods to Reject Offer
- express
2. counteroffer
Counteroffer vs. Mere Inquiry
Counteroffer = rejection
Mere inquiry = no rejection and valid offer remains
When is a rejection effective?
when it is received
Is silence taken as acceptance or rejection?
rejection
Termination by Operation of the Law
- death or incompetency
- destruction of subject matter
- illegality
What happens to an acceptance if it is invalid?
it becomes a counteroffer
Does Common Law or the UCC use the Mirror Image Rule?
Common Law
Mailbox Rule
will be on exam
*generally, acceptances are effective when dispatched
EXCEPTION: offeror can opt-out by saying acceptances must be received on a certain date
The Mailbox Rules makes what effective on dispatch?
acceptances ONLY
*revocations, rejections, and counteroffers are effective on receipt
Consideration Elements
- something of legal value given by each party
2. bargained for exchange