Chapter 10-Vocab Flashcards
(15 cards)
Offer
An act or statement that proposes definite terms and permits the other party to create a contract by accepting those terms
Meeting of the minds
A situation where the parties understand each other and intend to reach an agreement
Offeror
The person who makes the offer
Offeree
The person whom an offer is made
Letter of intent
A letter that summarizes negotiating progress
Gap-filler provisions
UCC rules for supplying missing terms
Output contract
An agreement that obligates the seller to sell all of his output to the buyer, who agrees to accept it
Requirements contract
An agreement that obligates a buyer to obtain all of his needed goods from the seller
Implied warranty of merchantability
A warranty that goods must be of at least average, passable quality in the trade
Implied warranty of fitness for a particular purpose
A warranty requiring that if the seller knows that the buyer plans to use the goods for a particular purpose, the seller generally is held to warrant that the goods are in fact fit for that purpose
Firm offer
An offer that by its own terms will be held open for a given period
Mirror image rule
A principle in contract law that requires that acceptance be on precisely the same terms as the offer
Additional terms
Terms that bring up new issues
Different terms
Terms that contradict terms in the offer
Mailbox rule
Acceptance is generally effective when it is sent
