Contract Formation

Question 1

Bargain

Manifestation of mutual assent to the exchange

Consideration

That all of (1), (2), and (3) relate to the same deal.

Answer 1

Three things you need to form a contract

Question 1

Depends on what the person actually believed

Answer 1

Meeting of the minds

Question 1

Whether a reasonable person in the position of the parties would have thought there was an offer and acceptance of the offer.

Answer 1

Manifestation of Mutual Assent

Question 2

to exist someone (the offeror) must make an offer and someone else (the offeree) must accept that offer.

Answer 2

Contract

Question 3

is a manifestation of intent to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.

Answer 3

Promise

Question 4

A manifestation of willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude a bargain until he has made a further manifestation of assent.

Answer 4

Preliminary Negotiations

Question 5

A manifestation of willingness to enter into a bargain

which justifies another person in understanding that his assent to that bargain

is invited and
will conclude it.

Answer 5

offer

Question 6

An offer made by an offeree to his offeror

relating to the same matter as the original offer and
proposing a substituted bargain

differing from that proposed by the original offer.

An offeree’s power of acceptance is terminated by his making of a counter-offer, unless the offeror has manifested a contrary intention or unless the counter-offer manifests a contrary intention of the offeree.

Answer 6

Counter-Offer

Question 7

To give something for something else.

A promise is given for a promise.
A promise for a performance.
A performance for a promise.
A performance for a performance.

Answer 7

Exchange

Question 8

What was requested to be done in the offer.

Answer 8

Performance

Question 9


An offeree’s power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract.

Answer 9

Revocation

Question 10

Acceptance is made only when the indicator of assent reaches the offeror
Once an acceptance has been dispatched, the offeree may not revoke the offer

Answer 10

CISG Mailbox Rule

Question 11

once an acceptance is put in the mail, the offeror cannot revoke his/her offer.

Answer 11

Mailbox Rule

Question 12

are generally not considered offers.

But can rise to the level of an offer if a reasonable person would interpret the ad that way.

is clear, definite, and explicit, and leaves nothing open for negotiation, it constitutes an offer, acceptance of which will complete the contract.

Answer 12

Advertisements

Question 13

by one party (the offeror) making an offer

to another party (the offeree) which the offeree accepts.

Answer 13

Manifestation of mutual assent

Question 14

manifestation of intent to act or refrain from acting in a specified way
so made as to justify a promisee in understanding that a commitment has been made.

Answer 14

Promise

Question 15

promises by both parties

Answer 15

Bilateral Contract

Question 16

Exchange = Giving of a promise for a performance
Promise =Manifestation of intent to act or refrain from acting So made that the promisee knows a commitment has been made.
for Performance= Doing of the thing requested (before its revoked)

a promise only by one of the parties

Answer 16

Unilateral Contract

Question 17

is created
When there is a unilateral contract 
and the offeree tenders performance 
or begins the invited performance 
or tenders a beginning of the performance

Answer 17

Option Contract

Question 18

Is ready and willing to perform and

Has given notice to the other party of such readiness.

Answer 18

Tender

Question 19

is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer.

Answer 19

Acceptence

Question 20

Agreement to agree as to a material term prevents the formation of a contract.
Such an agreement leaves a material term too vague and indefinite to be enforced.
It shows a lack of present agreement

Answer 20

Traditional rule of Agreement to Agree

Question 21

An agreement to agree carries with it an implied promise to negotiate in good faith.

Answer 21

Modern rule of Agreement to Agree

Question 22

Agreements to agree have a valuable commercial purpose.
So they reject the traditional rule because it nullifies an agreement the parties intended to be binding.
Generally this works out as the parties intended the open term to be filled in a reasonable way.

Answer 22

Minority Modern Rule of Agreement to Agree

Question 23

as the transferring of title for a price between buyer and seller

Answer 23

Sale

Question 24

things that are movable and tangible.

Answer 24

Goods

Question 25

The parties if they so intend can conclude a contract for sale even though the price is not settled. In such a case the price is a reasonable price at the time for delivery if a)nothing is said as to price; or b)the price is left to be agreed by the parties and they fail to agree; or c)the price is to be fixed in terms of some agreed market or other standard as set or recorded by a third person or agency and it is not so set or recorded. A price to be fixed by the seller or by the buyer means a price for him to fix in good faith. When a price left to be fixed otherwise than by agreement of the parties fails to be fixed through fault of one party the other may at his option treat the contract as cancelled or himself fix a reasonable price. Where, however, the parties intend not to be bound unless the price be fixed or agreed and it is not fixed or agreed there is no contract. In such a case the buyer must return any goods already received or if unable so to do must pay their reasonable value at the time of delivery and the seller must return any portion of the price paid on account. 

Answer 25

UCC 2-305 Agreement to Agree

Question 26

means honesty in fact in the conduct or transaction concerned.

Answer 26

Good Faith

Question 27

Whether the type of agreement involved is one usually put into writing Whether the agreement contains many or few details Whether the agreement involves a large or small amount of money Whether the agreement requires a formal writing for the full expression of the covenants Whether the negotiations indicated that a formal written document was contemplated at the completion of negotiations.

Answer 27

Factors for deciding if parties intend to reduce their agreement to a writing

Question 28

``` Is an event Not certain to occur but must occur unless excused before performance is due ```

Answer 28

Conditions

Question 29

is an act or event, other than a lapse of time, which must exist or occur before a duty to perform a promise arises. Example - Tom agrees to pay John $1,000 if a specified ship arrives in port before a certain date. Tom’s duty to pay does not arise unless and until the ship arrives.If the ship does not arrive by the date, then Tom has no duty to pay.

Answer 29

Condition Precedent