Contracts (Missed MBE) Flashcards
(5 cards)
When is an Ordinary Offer Revocable? What are the exceptions?
Formation of Offer, Recovaction
An ordinary offer is revocable at the will of the offeror. However, there are several exceptions to the general rule allowing revocation (i) the standard option contract; (ii) firm offers under the UCC (ii) temporary irrevocability as a result of the Offeree’s part performance or detrimental reliance.
When is an offer a firm offer?
Formation of Offer, Revocation
The UCC allows an offer to be irrovocable under certain circumstances even if no recatation of the payment of consideration is made if the offer: 1) is made by a merchant 2) is contained in a signed writing 3) gives explicit assurances that he will hold the offer open. When an offer is given under these circumstances it will be irrecocable even though there is no consideration given for keeping it open.
If a firm offer does not state a period of time that it will remain open an irrevocable, what is the effect?
Formation of Offer, Revocation
the offer will be irrevocable for a reasonable period of time
What is a Requirnments Contract?
A contract whereby the Buyer agrees to buy as much of a specific good as the buyer requires from the seller
What is an output contract?
When the seller agrees to sell and the buyer agrees to buy the seller’s** entire output** of a specific good.
