R6 Contracts 2 (Th)

Question 0

Termination of Offer

Answer 0

Revocation by Offeror
Rejection by Offeree
Termination by Operation of Law

Question 1

Communication to the Offeree

Answer 1

The offeree must have Offeree knowledge of the offer

Question 2

Revocation by Offeror

Answer 2

The general rule is that the offeror can revoke an offer any time before acceptance bycommunicating the revocation to the offeree.

This is true even if the offeror promises to keep the offer open

Question 3

Ways Offeror can Revoke Offer

Answer 3

May be direct or Indirect

Revocation by publication

Effective when received

Question 4

Limitation on Offeror’s Power to Revoke

Answer 4

Option contract

Unilateral contract

Merchant’s firm offers under UCC sales

Question 5

Rejection by Offeree

Answer 5

Once an offer is rejected, it can no longer effectively be accepted

Can say “no” or reject through counteroffer

Effective when received

Lapse of time - if no time period is specified, within a reasonable time

Silence is understood as a rejection of an offer

Question 6

Counteroffer

Answer 6

Consider to be both a rejection (which terminates the original offer) and an offer (of which the original offeror is now the offeree who may accept or reject). Merely asking a question is not a counteroffer

Question 7

Termination by Operation of Law

Answer 7

Termination by death or incompetency of parties
Termination by destruction of subject matter
Termination by illegality

Question 8

The Acceptance

Answer 8

The offeree’s asset to enter into a contract

Only the person to whom the original offer was made may accept

Question 9

Method of Acceptance

Answer 9

Generaly, acceptance made be made in any manner reasonable under the circumstances. However, if the offeror specifies a method of communication, that method must be used

Question 10

Acceptances Must be Unequivocal

Answer 10

Common law contracts folow the mirror image rule, which requires an acceptance to mirror the offer to be effective

Question 11

The Mailbox Rule

Answer 11

Acceptances are generaly effective when they are dispatched. It is irrelevant if a properly addressed acceptance is lost or delayed. The exception is when the offeror states in the offer that acceptances must be received to be effective

Question 12

Consideration

Answer 12

The price of contracting; both sides of the contract must be supported by legaly sufficient consideration

Question 13

Legal Value

Answer 13

The promisor’s promise is supported by consideration only if promisee agrees to do something he or she is not already obligated to do

Need not have monetary value
Need not flow to party
Courts wil not inquire adequacy
Preexisting legal duties generaly not sufficient

Question 14

Bargained-For Exchange

Answer 14

Something is not consideration unless it is given in exchange for other consideration

Gifts are unenforceable
Past or moral consideration is unenforceable
Detrimental reliance/promissory estoppel

Question 15

Promissory Estoppel (Detrimental Reliance)

Answer 15

A promise made by one party and detrimentaly relied upon by another can be enforced without consideration. For the doctrine to apply the promise must be reasonably relied upon and detrimental