Chapter 11 Flashcards
(16 cards)
Mutual agreement
Offeror and offeree both agree to the terms of the proposed agreement
Mirror image rule
- To form a mutual agreement the terms of the offer and acceptance much mirror each other
Offer
- Binding proposal made by an Offeror to form a contract
2. The terms of the offer dictate the terms of the contract
Elements of a valid/binding offer
- Offeror shows serious intent to be bound by offer
- Offer contains clear and definite material terms
- Offer effectively communicated to the offeree
“Mail box rule”
Acceptance takes effect when the offeree delivers the acceptance not when it is received
Revocation mail box rule
Revocation effective when received by the offeree
Irrevocable offers
May not withdraw offer even though no acceptance yet
Common law irrevocable offers
Detrimental reliance in a unilateral contract.
Option contract
Rejection of offers
Offeree shows clear intent to reuse the offer
Rejection mail box rule
Rejections are effective when received by the offeror
Revocation
Offerors act of withdrawing an offer is referred to as this
Option contract
A contract under which the offer cannot be revoked for a stipulated time period
Online offer provisions
Acceptance of terms Payment Return policy Disclaimer Limitation on remedies Privacy policy Dispute resolution
Forum-selection clause
Designated where disputes under the contract will be discussed (court)
Shrink wrap agreement
Agreement whose terms are expressed in a document located inside the box of which goods are packaged
Browse wrap terms
Online buyer does not have to agree prior to installing product
