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Terms in this set (31)
What is an offer?*
A proposal by one party
What is an offeror?
The party making the offer
What is an offeree?
The party to whom the offer is made
What are the powers of the offeror?
They create the proposal, initiates the contractual process and proposes the offer.
What are the powers of the offeree?
They have the power to create the contract by accepting the terms of the offer, assent of the offeree is required and disposes the offer.
What are the common law requirements for a proposal to qualify as a contractual offer?
Offeror must manifest present contractual intent, offer must be communicated to offeree, and offer must be certain and definite with respect to terms.
What are the Common Law contract requirements regarding contractual intent?
-Circumstances must appear to an objective, reasonable person that the offeror intended to make an offer
-Surrounding circumstances are the evidence in making this determination
-Serious words and expressions will likely demonstrate the element of intent
-Courts will attempt to find the most reasonable interpretation of circumstances
-Words of jest or sarcasm do not rise to the level of appropriate communication
What are the Common Law contract requirements regarding communication to offeree?
-Offeree can only accept offers that the offeree is aware of
-Method of communication is at the discretion of offeror
-Legally effective means of communication: oral, written, telephonic, mechanical
-Offers may be made to individuals or groups or a class of persons, any of whom may accept the offer
What are the Common Law contract requirements regarding certainty and definiteness elements of an offer?*
-parties to contract
-time of performance for fulfilling contract
Law requires terms to be...*
... definite, certain and capable of being understood by a reasonable person.
Vague and ambiguous terms...*
...invalidate the offer.
...is the bargain of the contract; it is the benefit conferred or the detriment incurred.
What is often the consideration or bargain of the contract?
True or False: If price term is left for future negotiation, there is no contract because the contract lacks consideration.
True or False: If the price term is completely omitted, the courts can insert a "reasonable price" and hear evidence to determine what that price would be under the circumstances.
Statements of vague and uncertain price terms...
...will result in the failure of the contract on grounds of indefiniteness.
Contracts for sale between commercial traders:*
- UCC permits contracts to be formed even if price is not quoted if parties have a history of past dealings and an objective standard can be used to determine price
- parties may refer to an objective standard to determine price an form a contract
...is also the consideration which forms the basis of the contract and thus must be stated in order to satisfy the requirements of contract
Common law requires subject matter to be specifically described in terms of...*
...content and quantity.
When the subject matter is described in terms that are capable of more than one interpretation.*
Offerer proposes a contract bases on alternative subject matter.
Output contract is when...
...one party agrees to purchase the entire output of the other party for a specified price.
Requirements contract is when...
...one party agrees to purchase all supplies actually used during a given period at a specified price.
Offerees (personally or by group)...
...must be specifically described (identity of offeror is obvious, but secret or unknown offeror will not invalidate contract unless it involves contracts for personal services)
If offeror intends contract to be made to a specific offeree,
that offeree must be specifically identified; otherwise offeree is anyone to whom the offer is properly communicated.
True or False: Offers last indefinitely.
True or False: If parties attempt to set a time for performance in vague terms, the offer fails.
Time is of the essence
-A term that is used if time is an important element to the parties
-Used with sale of perishable goods or when goods are needed for a specific purpose
-Failure to perform within this time frame will result in breach of contract
-Determined by general custom and usage
-Varies depending on circumstances of area, business and transaction
-Court considers surrounding circumstances to determine what is reasonable
Sale of Goods between merchants is covered by UCC to promote commerce.*
-Absence of one of the required terms will not invalidate contract
-Exception based on belief that merchants intend a contract and are in the best position to determine the essential requirements for their contract
-Defects in contracts can be cured by the actual -performance of the parties
-The acts of the parties create the specific terms of the contract
Which race car driver will give us an extra point for writing his name anywhere on the test?*
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