Formation of a K

Question 1

Offer

Answer 1

Outward manifestation to enter into a K

Intent AND specific acts

Question 2

Advertisement

Answer 2

Generally not considered an offer
“invitation to offer”

Question 3

Termination of Offer

Answer 3

1. Death - cannot sue estate
2. Lapse of time - too long becomes unreasonable that it terminates to be fair
3. Rejection
4. Revocation

Question 4

Direct Revocation

Answer 4

Retraction of an offer by the offeror

Offeror changes their mind before there is any acceptance

Question 5

Indirect Revocation

Answer 5

Learning from someone else that the offeror made another deal.
Once the offeree learns about the second deal their power of acceptance has been terminated.

Question 6

Option K

Answer 6

Need additional consideration to keep the offer open for a longer period of time

Question 7

Firm Offer

Answer 7

UCC
Promise to keep the offer open for a longer period of time BUT it needs to be in writing signed by the merchant

-Maximum period of time is three months

Question 8

Unilateral K

Answer 8

A promise for an act
Irrevocable the moment performance begins

Question 9

Bilateral K

Answer 9

Promise for a promise

Question 10

Mirror Image Rule

Answer 10

Acceptance must mirror the offer

Question 11

Mailbox Rule

Answer 11

Acceptance is effective when sent

Question 12

Exception to Mailbox Rule

Answer 12

When a rejection letter is sent and shortly after an acceptance letter is sent whichever arrives first prevails.

Question 13

UCC - Acceptance

Answer 13

Acceptance is construed liberally

Exceptions:
-Materially changes the terms of the K
-Objection to the change of a term in a reasonable amount of time
-Offer limits acceptance

Question 14

Consideration

Answer 14

Bargain for exchange amount does not matter

Question 15

Illusory Promise

Answer 15

Not valid consideration
-This is when the party making the offer retains control

Question 16

Gift

Answer 16

-Promise to give a gift is not valid consideration
-Already gave the gift is VALID consideration

-Cannot take back a gift

Question 17

Past or Moral Consideration

Answer 17

Not valid consideration

Question 18

Promise to pay a debt that was barred by the statute of limitations

Answer 18

This is valid consideration

Question 19

Promise to pay a debt discharged by bankruptcy

Answer 19

Valid consideration

Question 20

Forbearance to Sue

Answer 20

Valid consideration

Question 21

Promissory Estoppel

Answer 21

Detrimental Reliance

“A person does something that they would not ordinarily do, they only did it because of the promise”

Answer has to be about reliance

Question 22

Accord and Satisfaction

Answer 22

There are three different scenarios

1. We agree that there’s a debt I owe B $100 but I give him a $50 check that says paid in full. B can still come after me for the remaining balance,
2. Negotiation with a credit card company and we settle for $200 instead of $450 that is satisfied, and they cannot come after me for more money.
3. If I have a doubt that the debt exists but I pay you anyways whatever amount I pay you satisfies the debt.