chapter 8: agreement and consideration
Order by
12 terms
Terms | Definitions |
|---|---|
 requirements of offer | 1. serious objective intent 2. terms must be reasonably certain/ definite 3. offer must be communicated |
| what does not constitute an offer | 1. expressions of opinion 2. statements of intention 3. preliminary negotiations 4. ads, catalogues, price lists 5. auctions = invitations to submit offers |
| termination of offers | 1. termination by actions of the parties: -revocation: offeror withdraw offer -rejections -coutneroffer -questions about an offer is not a rejection 2. by operation of law -lapse of time -destruction of subject matter -death or incompetence by one of the parties -when offer is illegal |
| revocation | by statement or performance of acts inconsistent with existence of offer. 1. becomes effective when communicated to offeree 2. offers to general public can be revoked in same manner offer was originally communicated |
| acceptance | 1. unequivocal: mirror image rule - acceptance must match offer exactly 2. silence: receipt of offered service after they had a chance to decline, prior dealings 3. communication: bilateral acceptance 4. acceptance is timely if it is made before offer is terminated |
| mail box rule | acceptance is effective on dispatch when sent by whatever means is authorized by the offerrer |
| requirements of consideration | ... |
| elements of consideration | = value given in return for a promise 1. something of legally sufficient value must be given in exchange for the promise = consideration is of value to the eye 2. must be a bargained for exchange 3. adequacy of consideration: the fairness of the bargain |
| unconscionability | if consideration is so one-sided under the circumstances as to be unfair |
| no consideration if... | - there is a prexisting duty - past consideration: promises made for actions that have already taken place - illusory (unclear or uncertainty that promisor has agreed) |
| settlement of claims | 1. accord & satisfaction: debtor offers to pay, creditor accepts lesser amount that the creditor originally claimed was owed. 2. release: where one party forfeits right to pursue legal claim against the other party. Binding if a) given in good faith b) stated in signing c) consideration 3. covenant not to sue: does not always bar further recovery. Parties substitute a contractual obligation for some other type of legal action based on claim |
| promissory estopel | detrimental reliance: a person who relies on promise of another can recover if 1. clear and definite promise 2. reliance must be of substantial and definite character 3. promisee must justifiably rely on promisee 4. justice will be better served by enforcement of promise |
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