business law 10.1

  1. agreement
    manifestation by two or more persons of the substance of a contract, requires offer and acceptance
  2. required for offer to be effective
    • 1. the offerer must objectively intend to be bound by the offerer
    • 2. the terms of the offer must be definite or reasonably certain
    • 3. the offer must be communicated to the offeree
  3. objective intent
    uses objective theory of contracts; whether a reasonable person veiwing the circumstances would concede that the parties intended to be legally bound
  4. definiteness of terms
    • offer and contract must contain:
    • identification of parties
    • identification of subject matter and quantities
    • consideration to be paid
    • time of performance
  5. implied terms
    reasonable terms may be implied
  6. communication
    an offer must be communicated to the offeree by the offerer
  7. advertisements
    advertisement generally, an invitation to make an offer; unless offer so definite intent bound to advert
  8. reward
    an offer to create a unilateral contract
  9. auctions
    • 1. auction with reserve; invitation to make offer, retains right to refuse
    • 2. auction without reserve; is an offer, must except, stipulated
  10. termination of an offer by action of the parties
    revocation, rejection, counteroffer
  11. revocation
    offeror revokes the offer any time prior to the acceptance by the offeree
  12. rejection
    the offeree rejects the offer by his words or conduct
  13. counteroffer
    counteroffer by the offeree creates a new offer and terminates the offeror's offer
  14. termination of an offer by operation of the law
    • destruction of the subject matter
    • death or incompetency
    • supervening illegality
    • lapse of time
  15. destruction of the subject matter
    subject matter destroyed prior to acceptance through no fault of either party
  16. death or incompetency
    prior to acceptance, offeror or oferree dies or becomes incompetent
  17. supervening illegality
    prior to acceptance, object of the offer made illegal by statute, regulation, court decision or other law
  18. lapses of time
    offer terminates after stated time, if no time stated, after reasonable time
  19. rules for acceptance
    • 1. mirror image rule
    • 2. acceptance-upon-dispatch rule
    • 3. prior dispatch rule
    • 4. mode of acceptance
  20. mirror image rule
    under CLoC, offeree must accept the terms of offeror to create contract; change constitutes counteroffer not acceptance
  21. acceptance-upon-dispatch rule
    unless otherwise provided in offer, acceptance is effective when dispatched by offeree (mailbox rule)
  22. proper dispatch rule
    acceptance must be properly dispatched to be effective
  23. mode of acceptance
    must be by the express means of communication stipulated in offer, if not addressed, by reasonable circumstances
  24. implied authorization
    may be inferred from what is customary in similar transactions, usage of trade, or prior dealings
Card Set
business law 10.1