Mutual Assent - Offer and Acceptance Flashcards

Mutual Assent - Offer and Acceptance Flashcards Yes.Can the circumstances surrounding the language be considered in determining whether an offer exists?No.How can an offer be terminated?Unless otherwise provided, when is an offer construed as inviting acceptance?Unless otherwise provided, an offer is construed as inviting acceptance inany reasonable mannerand byany mediumreasonable under the circumstances.A bilateral contract may be formedupon the start of performanceby the offeree. Therefore, once the offereebegins performance, the contract is complete andrevocation becomes impossible.Does death automatically terminate a contract?Can an offeree's power of acceptance be assigned? Not.However, if the offeree paid consideration to keep the offer open, the right to acceptistransferrable.No. The offeree is stillfreeto accept the original offer within the option period unless the offeror hasdetrimentally reliedon the offeree's rejection.What is renovation?more likely it is that the courts will view the communications as merely thesolicitation of an offer.Advertisements, catalogs, circular letters, and the like containing price quotations are ______ construed as mere

______ ______ ______.

(1) Express(2) Counteroffer as Rejection What is express rejection?Theofferee.Does "receipt" require that the receiver read the communication?A seller promises to sell to a certain buyer all of the goods that the seller produces, and the buyer agrees to buy that amount form the seller.For "requirements" and "output" contracts, because it is assumed that the parties will act in goods faith, there can't be a tender of or demand for a quantityunreasonably disproportionateto (1) ______ ______ ______, or (2) (in the absence of a state estimate) any ______ or otherwise ______ prior output or requirements.

• Appropriate- Fair- ReasonableIf a material term is to be agreed upon later, the offer is

______ ______.

Elements of a Contract ChartWhat is required for communication to be an offer?(1) No. There is a signed letter - letterhead is treated as signed!(2) Yes. 6 months is not a reasonable time. If you want to hold the period open for 6 months, you need topay consideration.(3) You are still entitled to merchant firm offer rule protection. A reasonable time period will be fixed by the court but it will not exceed 3 months.(4) Yes. There is no promise to hold the offer open!What is detrimental reliance?The retraction of an offer by the offeror. How may an offer be terminated by revocation?Must the offeree know of the offer in order to accept it?Yes! This is true whether the offer is for a bilateral or unilateral contract.

The officer, if accepted, is construed as creating a contract terminable at the will of either party.In contracts for services other than employment, what is required?too uncertain.To have the power to accept, the offeree must have ______ of the offer. Therefore, the proposal must be

______ ______ ______.

What is mutual assent?One party must accept the other's offer.No!What are the limitations on the offeror's power to revoke?An offeror may revoke by directly communicating the revocation to the offeree.How may an offer be revokedindirectly?Which events constitute a termination of an offer by operation of law?(1) Death or Insanity of Either Party(2) Destruction of the Proposed Contract's Subject Matter(3) Supervening Illegality Whether enough of the essential terms have been provided so that a contract including them iscapable of being enforced.To be considered an offer, a statement must ______ ______ the offeree, or a class to which they belong, to justify the interference that the offeror intended to create a ______ of ______.When an acceptance is made expressly conditional on the acceptance of new terms, it is arejectionof the offer. The conditional acceptance is anew offer, and the original offeror may form a contract by expressly assenting to the new terms.Disney sends Barack Obama an offer to appear in the film, "TheMan in the Tan Suit." Obama agrees on the condition that he getstop billing. Is there a contract?Whenreceivedby the offeror.Does rejection of or a counteroffer to anoptionconstitute a termination of the offer?

There arenodefinite terms!Offers for the sale of goods must include:

What type of standard do you use to determine whether mutual assent is present?An objective standard - did words or conduct manifest a present intention to enter into a contract?Theofferor.Who canrejectan offer?(1) Was there an expression of apromise, undertaking, or commitmentto enter into a contract?(2) Was therecertainty and definitenessin the essential terms?(3) Was therecommunicationof the above to the offer?Whatthreeelements are required for a communication to be an offer?The original offer is terminated and the roles of the parties are reversed.

MBE Tip: Question Mark =

A distinct contract in which the offeree gives consideration for a promise by the offeror not to revoke an outstanding offer.What is a merchant's firm offer under Article 2?What is acceptance?A manifestation of assent to the terms of an offer.(1) Use of Broad Communications MEdia(2) Advertisements, Etc.The broader the communicating media (i.e., publications) the ______ likely it is that the courts will view the communications as merely the ______ ______ _______

______.

Is the offer still open? Has it terminated due to lapse of time?How can you terminate an offer through rejection?If an offer does not specifically provide that it may be accepted only throughperformance, what is the result?The contract will be construed as an offer to enter into abilateralcontract andmaybe accepted either by a promise

to performorby thebeginning of performance.

Generally whenreceivedby the offeree.On Monday, I offer to sell my Prius to J. Lo. On Tuesday, I mail hera revocation. On Wednesday, J. Lo accepts my offer. On Thursday,she receives my revocation. Is my revocation effective?

No. There is foreseeable detrimental reliance. MBE Tip: Bids =

Yes.In determining whether certain remarks constitute an offer rather than preliminary negations, may a court look to the prior relationship and practice of the parties involved?Offers can be revoked at will be the offeror, even if he has promised not to revoke for a certain period.In whatfourcircumstances are an offeror's power to revokelimited?No. 12 months probably is not a reasonable time. MBE Tip: READ DATES CAREFULLY! If you see dates in your fact pattern, what do you have to do?A buyer promises to buy from a certain seller all of the goods the buyer requires, and the seller agrees to sell that amount to the buyer.What is an "output" contract?a reasonable time.Is there a presumption that the parties' intent was to include a reasonable term?The nature of the work to be performed must be included in the offer.What happens if one or more terms are left open?When may a court find that silenceworks as an acceptance?

If:(1) Custom - because of prior dealings or trade practices,

it would be commercially reasonable for the offeror to consider silence an acceptanceOR(2) the recipient of services knows or should have known that the services were being rendered with the expectation of compensation and, by a word, could have prevented the mistake.The majority of courts and Article 2 hold that thecourt can supply reasonable termsfor those that are missing.Does the failure to state a price prevent the formation of a contract?Whenpublished.Who canrevokean offer?An offer for a true unilateral contract becomesirrevocable once performance has begun. The offeror must give the offeree areasonable time to complete performance. The offeree isnot boundto complete performance - they may withdraw at any time prior to completion of performance, and there is not acceptance until performance is complete.Do substantial preparations to perform make the offer irrevocable?The price will be areasonable price at the time of delivery.If an agreement doesn't specify the time in which an act is to be performed, the law implies that it is to be performed within ______ ______ ______.

Yes.MBE Tip: Although price quotations generally are not

offers, can they be if given in response to an inquiry that contains a quantity term?

If:(1) The advertisement contains a promise;(2) The terms

are certain and definite;AND(3) The offeree is clearly identified.An offer must be ______ and ______ in its terms.When the offeror could reasonably expect that the offeree would rely to their detriment on the offer, and the offeree