Chapter 9 Agreements in Traditional and E-Contracts Flashcards
(37 cards)
What is an agreement?
An essential element for contract formation is an agreement.
What is an offer?
An offer is a promise or commitment to perform or refrain from performing some specified act in the future.
What is an offeree?
The party to whom the offer is made
What are the three elements necessary for an offer to be effective?
1) There must be a serious, objective intention by the offeror.
2) The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.
3) The offer must be communicated to the offeree.
How is intent determined?
It is determined by what a reasonable person in the offeree’s position would conclude the offeror’s words and actions meant.
Is an opinion an offer?
No. An expression of opinion is not an offer.
Is a statement of an intention an offer?
No. A statement of an intention to do something in the future is not an offer.
Is a request or invitation an offer?
No. A request or invitation to negotiate is not an offer.
Are advertisements, catalogues, price lists, and circular letters offers?
No. Advertisements, catalogues, price lists, and circular letters are treated as invitations to negotiate, not as offers to form a contract.
Are agreements to agree binding contracts?
The modern view is that agreements to agree may be enforceable agreements (contracts) if it is clear that the parties intended to be bound by the agreements.
Are preliminary agreements binding contracts?
Yes. Preliminary agreements constitutes a binding contract if the parties have agreed on all essential terms and no disputed issues remain to be resolved.
What is definiteness?
An offer must have reasonably definite terms so that a court can determine if a breach has occurred and give an appropriate remedy.
What must be included in a contract in regards to definiteness?
1) The identity of the parties.
2) The identification of the object or subject matter of the contract.
3) The consideration to be paid.
4) The time of payment, delivery, or performance.
Communication
The offer must be communicated to the offeree.
What is revocation?
The offeror’s act of withstanding an offer.
What is a counteroffer?
A rejection of the original offer and the simultaneous making of a new offer.
What does the mirror image rule require?
That the offeree’s acceptance match the offeror’s offer exactly.
When can a contract be terminated by operation of law?
1) Lapse of time
2) Destruction of the specific subject matter of the offer.
3) Death or incompetence of the offeror or the offeree
4) Supervening illegality of the proposed contract. (A statute or court decision that makes an offer illegal automatically terminates the offer)
When can an offer be irrevocable?
Courts refuse to allow an offeror to revoke an offer when the offeree has changed position because of justifiable reliance on the offer (under the doctrine of promissory estoppel).
What is an option contract?
An option contract is created when an offeror promises to hold an offer open for a specified period of time in return for a payment (consideration) given by the offeree.
What is an acceptance?
An acceptance is a voluntary act by the offeree that shows assent, or agreement, to the terms of an offer.
Can silence constitute an acceptance?
Yes and no.
How must acceptance be communicated?
In unilateral contracts, the full performance of some act is called for and notification is unnecessary.
In a bilateral contract, communication of acceptance is necessary.
What is the mailbox rule (deposited acceptance rule)?
Acceptance takes effect, and thus completes formation of the contract, at the time the offeree sends or delivers the acceptance via the mode of communication expressly or impliedly authorized by the offer.
