RST Provisions Flashcards
1 contract defined
A contract is a promise or set of promises for which the law gives a remedy
2 promise; promisor; promise
1) a promise is a manifestation of intention to act or refrain from acting in a specified way so made as to justify a promisee in understanding that a commitment has been made
2) person manifesting the intention is promisor
3) person to whom manifestation is addressed is promisee
4 how a promise may be made
A promise is stated in words, written or oral, or may be inferred wholly or partly from conduct
21 intention to be legally bound
Neither real nor apparent intention that a promise be legally binding is essential to the formation of a contract, but manifestation of intent not to be legally bound may prevent formation of a contract
17 requirement of a bargain
1) except as stated in subsection 2 formation of a contract requires a bargain in which there is a manifestation of mutual assent to exchange and consideration
2) contract may be formed without bargain under 82-94
3 agreement defined and bargain defined
An agreement is a manifestation of mutual assent between two or more persons a bargain is an agreement to exchange promises, performances, or promise for performance
22 mode of assent offer and acceptance
Manifestation of mutual assent to exchange ordinarily takes the form of offer by one party and acceptance by one or more other parties
24 offer defined
Offer is a manifestation of willingness to enter into bargain so made as to justify another in understanding his assent to the bargain is invited and will conclude it
26 prelim negotiations
A manifestation of willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude bargain until he has made a further manifestation of assent
30 form of acceptance invited
1) offer may invite or require acceptance to be made by an affirmative answer in words or by performing or refraining from performing a specified act or may empower the offeree to make a selection of terms in his acceptance
2) unless otherwise indicated by language or circumstances, an offer invites acceptance by any medium and in any manner reasonable in the circumstances
50 acceptance and offer defined acceptance by performance acceptance by promise
1) acceptance of an offer is a manifestation of assent to the terms thereof, made by the offeree in a manner invited or required by the offer
2) acceptance by performance requires that at least part of what the offer requests be performed or tendered
3) acceptance by promise requires that the offeree complete every act essential to the making of the promise
60 acceptance of offer which states place, time, or manner of acceptance
If an offer prescribes the place time or manner of acceptance, its terms on this should be complied with to create a contract. If an offer merely suggests a permitted place, time, or manner of acceptance, another method of acceptance is not precluded
35 offerees power of acceptance
1) offer gives to offeree a continuing power to complete the MMA by accepting the offer
2) contract cannot be created by acceptance after the power of acceptance has been terminated in one of the ways listed in 36
36 methods of terminating power of acceptance
1 offeree’s POA may be terminated by
A) rejection or counter offer by the offeree
B) lapse of time
C) revocation by offeror
D) death or incapacity of either party
38 rejection
1) Offeree’s power of acceptance is terminated by rejection of the offer, unless offeror manifests contrary intention
2) manifestation of intention not to accept an offer is rejection unless its a manifestation of intention to take it under further advisement
39 Counter offers
1) counter offer is an offer made by offeree to offeror relating to same Matt as original offer ne proposing a different bargain from original offer
2) Offeree’s power of acceptance is terminated by making of a counteroffer, unless a contrary intention has been manifested
41 lapse of time
1) offeree’s POA is terminated by time specified in offer or if no time is specified, in reasonable time
2) reasonable time is a question of fact, depends on circumstances made when offer and attempted acceptance are made
3) unless otherwise indicated by language or circumstances and subject to 49, offer sent by mail is seasonably accepted if acceptance is mailed before midnight on day when offer is received
42 Revocation
POA is terminated when offeree receives manifestation of intention not to enter into proposed contract from offeror
63 when acceptance takes effect
Unless offer provides otherwise
A) acceptance, made in invited manner, is operative and completes MMA as soon as it is put out of offeree’s possession, without regard to whether it reaches offeror, but
B) acceptance under an option contract is not operative until received by offeror
56 acceptance by promise, necessity of notification to offeror
Except as stated in 69 or where offeror manifests contrary intention, it is essential to acceptance by promise that either offeree exercise reasonable diligence to notify offeror of acceptance or that the offeror receive acceptance seasonably
66 acceptance must be properly dispatched
Acceptance sent by mail or from a distance is not operative when dispatched unless properly addressed and other ordinarily observed precautions have been taken to ensure safe transmission of similar messages
59 purported acceptance which adds qualifications
Reply to an offer which purports to accept but is conditional on offerors assent to terms different from those offered is not acceptance but counteroffer
43 indirect communication of revocation
Offeree’s POA is terminated when offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect
