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Flashcards in Offer Deck (32):
1

What must an offer communicate?

An intent to enter into a contract.

2

Are advertisements offers?

No, they are invitations for offers.

3

What must be included in an offer involving real estate?

a description of the land and a price term

4

What must be included in an offer involving the sale of goods?

a quantity term

5

Requirements Contract

a buyer promises to buy from a certain seller all of the goods the buyer requires and the seller agrees to sell that amount to the buyer.

6

Output Contract

a seller promises to sell to a certain buyer all of the goods that the seller produces, and the buyer agrees to buy that amount from the seller.

7

The failure to state a price in a contract does not prevent the formation of a contract if the parties intended to form a contract without the price being settled, except for what kind of contract?

contracts involving real estate.

8

If an agreement does not specify the time in which an act is to be performed, the law implies that it is to be performed . . .

within a reasonable time.

9

How can uncertainty as to a vague term be cured?

by partial performance which clears up the ambiguous term

10

What happens if a material term is ambiguous?

There is no offer.

11

What is the effect of a material term being agreed upon at a later date?

There is no offer.

12

To have the power to accept an offer, the offeree must have _________ of the offer.

knowledge

13

An offer cannot be accepted after it has been ____________.

terminated

14

A revocation is effective when _____________

received by the offeree.

15

Does "received" mean that the recipient has actually read the communication?

No. A written communication is received when it is delivered to the place of business through which the contract was made. The recipient need not actually read the communication to have received it.

16

Can an offeror revoke an offer he has promised not to revoke?

Generally, yes. However, there are exceptions.

17

Option

a distinct contract in which the offeree gives the offeror consideration in exchange for the offeror's keeping the offer open for an agreed upon period of time.

18

Can an option be revoked prior to the end of the agreed on period?

No.

19

Merchant's Firm Offer

a signed writing from an offeror purporting to keep an offer open for a given period of time to an offeree. Basically these are options between a merchant and a buyer.

20

How long can a merchant's firm offer be held open?

3 months. They can agree to shorter or longer, but the merchant's liability ends at three months. He can revoke at any time after three months despite having agreed for longer.

21

Is consideration necessary for a merchant's firm offer?

No, but offerees can support it with consideration.

22

What is the effect of consideration in a merchant's firm offer?

Where there is consideration for a merchant's firm offer, the offer will be held open for however long the parties agree. The three month rule does not apply because consideration has been put down.

23

Under the doctrine of detrimental reliance, when the offeror could reasonably expect that the offeree would rely on her detriment on the offer, and the offeree so relies, the offer will be held . . . .

as an irrevocable offer for a reasonable period of time.

24

When does an offer for a true unilateral contract become irrevocable?

when performance has begun

25

Is an offeree to a true unilateral contract bound to complete performance once she has begun?

No, because one does not accept a unilateral contract until performance has been completed.

26

Substantial preparation to perform does not make an offer irrevocable. However, it could evince what?

detrimental reliance

27

A bilateral contract may be formed upon . ..

the start of performance by the offeree.

28

Express rejection _____________ the offer.

terminates

29

A counteroffer by an offeree to an offeror is . . .

both a rejection and a new offer.

30

Does inquiring about a price terminate an offer?

No.

31

A rejection is effective when it is ___________.

received.

32

Can options be terminated by a counteroffer?

No. Options are contracts to keep an offer open. The offeree is free to accept the offer at any time, even after making a counteroffer, so long as he accepts the original offer within the originally agreed upon period.