REG mod 26b Flashcards
Describe the Mailbox rule.
The Mailbox rule dictates that when an acceptance is sent the offer has been accepted.
What is the term used to describe a corporation’s action to relieve a promoter from his personal liability on a contract?
Novation.
Who has the right to accept an offer?
Only the offerree—the person to whom the offer was made
When are offers, revocations, rejections, and counteroffers valid under the Uniform Commercial Code?
When received. Note: This is the same as common law.
Which type of contract law requires new consideration when modifying a written contract?
Common law requires new consideration from both parties to the contract. The UCC requires modifications to be ‘in good faith’.
What is the statute of limitations for a contract for the sale of goods?
The statute of limitations is four years, beginning of the date the contract was breached.
Name the three elements of a valid contract offer.
Intent – the offeror intended to make an offer
Terms – the parties are aware of their obligations
Communication – the offeror must communicate the offer to the offerree.
Under what circumstances may an oral contract be sufficient for the purchase of goods in an amount greater than $500?
When the goods are specifically manufactured for the buyer.
What is an anticipatory breach of contract?
This occurs when one party to the contract decides to breach the contract, prior to the performance deadline. The party breaching the contract may be sued immediately.
Is a surety agreement required to be in writing?
Yes, due to the Statute of Frauds.
What is the mirror image rule?
The acceptance of an offer must be for the exact same (‘mirror image’) terms as the offer. Note: the mirror image rule only applies to common law contracts
Describe what happens if the offerror dies prior to acceptance of the offer.
The offer is void. The offer is also void if the offeror goes insane prior to the acceptance of the offer.
May the offeror require the offerree to accept the offer through a certain type of communication, such as through e-mail?
Yes, and if the offeree accepts the offer via a written and mailed letter (and the offerror required acceptance to be through e-mail), the acceptance is not considered valid.
Describe the Firm Offer Rule.
A firm offer exists when a merchant makes a written offer, and promises to hold the offer open for a period of time. The maximum period of time is three months. The written offer must be signed by the merchant.
What is the most significant requirement related to a contract for the sale of land?
The contract must be in writing. This is due to the statute of frauds.
