Chapter 12

Question 1

Requirements of an Offer

Answer 1

1. Offeror must have serious intention to be bound by offer
2. Terms must be reasonably certain, definite, so parties and court can ascertain the terms of contract
3. Offer must be communicated to the offeree

Question 2

Situations Where Intent May Be Lacking

Answer 2

1. Expressions of opinions
2. Statement of future intent (I plan to sell my shirt)
3. Preliminary negotiations (request/invite to negotiate is not an offer)
4. Invitations to bid (construction bids)
5. Advertisements and price lists
6. Live/Online auctions

Question 3

Definiteness of Terms

Answer 3

1. Identification of parties
2. Identification of object or subject matter of contract
3. Consideration to be paid
4. Time of payment, delivery, or performance

Question 4

Termination by Act of Parties

Answer 4

1. Revocation
2. Irrevocable Offers
3. Rejection
4. Counteroffer

Question 5

Revocation

Answer 5

offeror’s act of revoking, withdrawing, an offer.

Question 6

Irrevocable Offer

Answer 6

contract under which the offeror cannot revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer at any time during this period. The offeree must give consideration for the option to be enforceable.

Frequently used with sale or lease of real estate

Question 7

Counteroffer

Answer 7

Rejection of the original offer and simultaneous making of new offer

Question 8

Termination by Operation of Law

Answer 8

1. Lapse of Time
2. Destruction of specific subject matter
3. Death or incompetence of offer/offeree
4. Supervening illegality of contract

Question 9

Unequivocal Acceptance

Answer 9

Mirror Image Rule

Question 10

Silence as Acceptance

Answer 10

cannot constitute as an acceptance

Question 11

Mailbox Rule

Answer 11

rule providing that an acceptance of an offer becomes effective on dispatch.

Not applied to instantaneous form of communications ie emails, those are considered sent when it leaves the control of the sender.

Question 12

E-Contract Acceptance Provisions

Answer 12

1. Acceptance of Terms
2. Payment
3. Return Policy
4. Disclaimer
5. Limitation on Remedies
6. Privacy Policy
7. Dispute Resolution

Question 13

Forum Selection Clause

Answer 13

A provision in a contract designating the court, jurisdiction, or tribunal that will decide any disputes arising under the contract

Question 14

Choice of Law Clause

Answer 14

specifying that any contract dispute will be settled according to the law of a particular jurisdiction, such as a state or country.

Question 15

Click On Agreements

Answer 15

agreement that arises when a buyer, engaging in a transaction on a computer, indicates his or her assent to be bound by the terms of an offer by clicking on a button that says, for example, “I agree”; sometimes referred to as a click-on license or a click-wrap agreement.

Question 16

Shrink Wrap Agreements

Answer 16

agreement whose terms are expressed in a document located inside a box in which goods (usually software) are packaged; sometimes called a shrink-wrap license.

Question 17

Browse Wrap Terms

Answer 17

terms and conditions of use that are presented to an Internet user at the time a product, such as software, is downloaded but that need not be agreed to before the product is installed or used.

Question 18

Partnering Agreements

Answer 18

agreement between a seller and a buyer who frequently do business with each other on the terms and conditions that will apply to all subsequently formed electronic contracts

Question 19

U.S. Laws Affecting E-Contracts

Answer 19

1. E-Sign Act
2. UETA

Question 20

E-Sign Act

Answer 20

E-signature has defined as “an electronic sound, symbol or process attached to or logically associated with a record and executed or adopted by a person with intent to sign the record.

Question 21

UETA

Answer 21

Primary purpose is to remove barriers to e-commerce by giving the same legal effect to electronic record and signatures as is given to paper documents and signatures. (relating to transaction)