Chp 10. The Offer

Question 1

Offeror

Answer 1

person who makes the offer

Question 2

Offeree

Answer 2

person who has the power to bind the contract by accepting offer

Question 3

Offer

Answer 3

proposal created to establish legal relations on acceptance by offeree

Question 4

Present Intent to Contract

Answer 4

intent to enter the contract upon acceptance

Question 5

Objective Theory of Contracts

Answer 5

predictable and consistent results in contract cases

reviewing parties’ outward manifestations of intent

Question 6

Master of The Offer

Answer 6

person who has the power to establish the terms & conditions under which both parties are bound

Question 7

Revocation

Answer 7

offeror revokes the offer any time prior to acceptance

Question 8

Option

Answer 8

separate contract where offeror agrees not to revoke offer for stated time in exchange for consideration (benefit; money)

ex. jamie wants to buy marks house, pays mark $5,000 to give her 5 months to consider buying house. Mark cannot sell or accept other offers during that time

Question 9

Firm Offer

Answer 9

similar to option; does not require consideration (benefit; money) to be given in exchange for promise to keep offer open

To be a firm offer:

• Must be made by a merchant
• signed in writing
• give assurances that the offer will be kept open

All firm offers can be revoked after 3 months

Question 10

Counteroffer

Answer 10

implied rejection of original offer

Question 11

Rejection

Answer 11

expressed unwillingness to accept offer

Question 12

Intervening Illegality

Answer 12

if proposal becomes illegal before offer is accepted

ex. computer company agrees to sell to china; congress enforces an embargo; offer becomes illegal