WEEK4: Consideration; Agreement to Agree; Unilateral Contracts; Option Contract; Battle of Forms Flashcards
Agreement to Agree
Where *essential terms such as price are not contained in an *option contract, and *no standards are included whereby such terms may be judicially determined (specific formula, designated arbitrator, extrinsic market source, etc.), *no contract exists.
Unilateral Contracts
A unilateral contract is a contract in which performance is based on the *wish, will, or pleasure of one of the parities. An offer to make a unilateral contract is *accepted when the requested performance is rendered. An *offeror may not revoke an offer where the offeree has made *substantial performance.
Option Contracts
An option contract involves a *promise to keep an *offer open, a promise that is binding on the offeror. However, to be *binding on the offeror, the promise to keep the offer open must either be supported by “consideration” given by the offer or have some other basis for enforcement.
Battle of Forms 1
A *preprinted document that gives all the *legal protection required in a *particular type of transaction, with blanks for selling personnel to fill in the small amount of information that varies from sale to sale.
Battle of Forms 2
Mirror Image Rule
The *Counter Offer *extinguishes the original power of acceptance created by the *original offeror. The counter offer, which includes any modifications or nullifications to the original offer, then conveys the power of acceptance from who was once the offeree and now the present offeror to the new offeree (the orginal offeror).
Battle of Forms 2
Last Shot Rule
Under that rule, a party impliedly assented to and thereby *accepted a counter-offer by *conduct indicating lack of objection to it. In addition to being based on a questionable notion of implied assent, the last shot rule tended in practice to favor sellers over buyers, because sellers normally “fire the last shot”.
