Final Exam Flashcards
What is an Offer?
A promise or a set of promises made by the offeror to the offeree
What is an ITT?
An invitation to treat is not a legal offer, but a signal of willingness to negotiate. It invites others to make an offer, which can then be accepted or rejected
What are the 3 main ways an offer can be made?
Verbally, in writing, or by gesture/conduct
What is a standard form contract?
A pre-drafted contract where one party sets all the terms and the other must accept or reject it as-is. Often used in routine or mass transactions. “take it or leave it”
Who has the burden of proof when an offeree claims they didn’t know a term in a contract?
If the offeree proves they were not aware of a term, the offeror must show—on an objective basis—that they took reasonable steps to bring the term to the offeree’s attention
When an offer lapses, it can no longer be accepted, Lapse occurs on the earliest of:
- failure to accept within specified time period
- failure to accept within a reasonable time
- when either party dies or becomes incompetent before acceptance
Revocation – an offeror can revoke or withdraw an offer any time prior to acceptance as long as:
- Needs to be communicated or
- offeree needs to be aware that the offeror can no longer complete the deal
What is a counter offer?
rejection of the original offer, and a subsequent offer on different term - new offer - once counter is made old offer is gone
Acceptance must be:
certain and unconditional, ie positive act
Ex: signing of agreement, shaking hands
What is a unilateral contract?
A contract where one party makes a promise and the other party accepts by performing a specific action. No obligation exists until performance occurs.
When analyzing offer and acceptance what are the 4 things to remember?
- Who made the offer
- When was it communicated
- Who accepted the offer
- When was it accepted
What is consideration?
Something of value exchanged between parties to form a legally binding agreement. It can be a promise, act, or forbearance.
What is a gratuitous Promise?
A promise made without consideration—meaning the promisor gets nothing in return
What is Equitable/ Promissory Estoppel?
prevents someone from going back on a promise, even without consideration, if the other party reasonably relied on it and suffered a detriment
What are the 3 types of legal mistakes
- Unilateral Mistake - one party is mistaken
- Mutual Mistake - both parties are mistaken but its not the same mistake
- Common Mistake - both parties are mistaken and its the same mistake
What is representation and misrepresentation?
Representation - statement of fact that induces the other part to enter the contract
Misrepresentation - untrue statements that is made by the promisor and relied upon
What is undue influence?
When one party uses improper pressure or manipulation to get another to enter a contract, often exploiting a position of trust or authority
What is strict interpretation and the downsides?
Based on ordinary or dictionary definition.
-few words have one meaning and definitions shift over time
What is liberal interpretation and the downside?
purpose/ intent, meaning in context
-judge’s interpretation of the intent can be baseless
What is Parole Evidence?
oral or written statements made before or during contract signing that are not part of the final written contract
When is Parole Evidence allowed to be used?
-fraud, duress, misrepresentation
-ambiguous word
-legality of contract
What situations allow parole evidence?
-document doesn’t contain full contract
-subsequent oral agreement
-collateral agreement
-condition precedent
What is the privity of contract doctrine?
Only parties to a contract can enforce or be bound by its terms. Third parties usually have no rights or obligations.
What are the four main exceptions to the rule of Privity?
- Insurance
- Undisclosed Principal
- Contracts concerning land
- Collateral Contracts
