Contracts - Formation Flashcards Preview

Bar Exam 2014 > Contracts - Formation > Flashcards

Flashcards in Contracts - Formation Deck (11):
1

Offer

An objective manifestation by the offeror of a willingness to enter into a bargain creating the power of acceptance in the offeree. Offeror is the master of the bargain.

2

Acceptance

An objective manifestation by the offeree to be bound by the terms of the offer.

3

Termination of an offer

1) death of the offeror
2) revocation (comes from offeror)
3) rejection (comes from offeree)
4) counteroffer (comes from offeree)
5) lapse of time (face to face conversation rule - alive for the short duration)

4

Rejection v "Mere" Inquiry

Rejection terminates the offeree’s power of acceptance. Mere inquiry does not terminate the offeree’s power of acceptance. Offeror can renew offer in the face of a rejection.

5

UCC 206-6: Non-Conforming Goods

If non-conforming goods are shipped, the shipment serves as an acceptance and at the same time a breach.

6

Unilateral K

Offeror makes an offer that calls for performance. Looking for action.

7

Bilateral K

Offeror and offeree exchange mutual promises. Looking for promise.

8

UCC 2-205: Firm Offer Rule

A signed writing by a merchant which by its terms gives assurances that it will be held open is not revocable for lack of consideration for the stated period of time not to exceed 3 months.

9

Consideration

Bargained for legal detriment

10

Modification

A subsequent agreement that alters or changes the parties’ duties and obligations under the terms of their original contract.
UCC: good faith, no consideration required
Common Law: pre-existing duty rule, new consideration required

11

Pre-Existing Duty Rule

Performance of an act by which a party is already contractually bound to perform does not constitute valid consideration for a new promise.