Contracts Flashcards
what is a unilateral contract?
a contract that can only be accepted by performance
Article 2 of the UCC applies to what kinds of contracts?
sale of goods (tangible items)
common law applies to what kinds of contracts?
service contracts
real estate
What happens if a contract involves both the sale of goods and land?
the most important part controls, unless there is a price for both. In that case, you use both.
what is a contract?
a contract is an agreement that is legally enforceable.
what is an offer?
a manifestation of commitment
how do you tell if there is an offer?
a reasonable person in the position of the offeree would believe that their assent would create a contract.
what is required in the sale of real estate?
the price and land description
what happens if there is a missing price term in the sale of land?
there is no contract
is there a price requirement for the sale of goods?
no, can be an offer even without price. Must look at intent of parties.
what happens if there are vague terms such as fair, appropriate, reasonable, in the sale of goods?
no offer. Has to state quantity, can use all, only, exclusively, solely.
can a buyer increase requirements so long as the increase is in line with prior demands?
yep
is an advertisement or price quotation an offer?
no
when is an advertisement or price quotation an offer?
if it is in the nature of a reward,
if it specifies and expressly indicates who can accept,
price quotation can be an offer in response to an inquiry
how can an offer be terminated?
- lapse of time - time stated or reasonable time (usually month)
- death of a party prior to acceptance
- offeror revokes
- offeree rejects
how can an offeror revoke an offer?
- unambiguous statement by offeror to offeree
- unambiguous conduct by offeror that offeree is aware of.
must be of unwillingness or inability.
does the fact that there are multiple offers revoke the initial offer?
no unless offeree learns of the inabilityt to the contract.
what are the 4 situations in which an offer cannot be revoked?
- option
- UCC firm offer rule
- reliance
- start of performance
when can an option not be revoked?
promise to not sell and payment/consideration for the promise, paid promise!!!
what are the elements to the ucc firm offer rule?
- offer to buy or sell goods
- party merchants
- written and signed promise to keep offer open
- cannot be more than 3 months
how does reliance prevent an offer from being revoked?
an offer cannot be revoked if there has been (1) detrimental reliance that is (2) reasonably foreseeable, and (3) detrimental
when is a unilateral contract offer irrevocable?
start of performance, for the reasonable time to complete performance. mere preparation is not enough.
what are the ways to reject an offer?
- counteroffer
- conditional acceptance
- additional terms (mirror image rule)
what happens when the offeree makes a counteroffer?
terminates the offer and creates a new offer.