C2) Contract Formation Flashcards
(18 cards)
What is an invitation to treat?
an invitation to treat is not an offer, but rather an indication that someone is willing to negotiate or invite offers.
Is an invitation to treat legally bounding ?
No
What are some examples of invitations to treat?
Goods displayed in a store window
Advertisement in a newspaper
Menu in a restaurant
Auction starting bid
Online catalog listing
What happens when a pre-condition is satisfied?
The offer becomes unconditional
A letter of revocation is effective when posted. True or False
False - The postal rule only applies to acceptance not revocation
What is revocation?
Revocation most commonly refers to the withdrawal of an offer by the offeror before it is accepted by the offeree.
When a letter of acceptance is posted is it the day its posted or the day it is received
The day it is posted
Who is the offeror and who is the offeree?
-offeror is the person who makes the offer.
-offeree is the person who receives the offer and has the power to accept or reject it.
What is a rebuttable presumption?
assumption that stands as fact until it is challenged and disproven with evidence. (Innocent until proven guilty)
What does consideration need to be?
Sufficient but need not be adequate
A contractual offer may be terminated by Rejection T OR F ?
True
A contractual offer may be terminated by lapse of time T OR F ?
True
Does a Valid contract have to contain written evidence of the principal terms of the contract ?
No
Does a valid contract have to contain an agreement?
Yes
What is Executory Consideration?
A promise to do something in the future
What is Executed Consideration ?
When one party performs their part of the bargain when the agreement is made
What is past consideration?
Refers to something done before the agreement is made
