Business Law Chapt 10
Terms in this set (6)
The manifestation by two or more persons of the substance of a contract.
Objective theory of contracts
A theory that says the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
The following three are required for an offer to be effective
1. The offeror must objectively intend to be bound by the offer
2. The terms of the offer must be definite or reasonably certain
3. The offer must be communicated to the offeree
To be considered definite (clear enough for the offeree to be able to decide whether to accept or reject the terms of offer), an offer must include
1. Identification of the parties
2. identification of the subject matter and quantity
3. consideration to be paid
4. Time of the performance
A term in a contract that can reasonably be supplied by the courts
-Common low of contracts require an exact specification