Flashcards in Page 11 Deck (13):
What is the difference between repudiation and a rejection of an acceptance?
This is acceptance and then repudiation, not rejection from beginning
What is the problem with withdrawal of acceptance?
Mailbox rule applies, so contact was formed, and withdrawal is not effective.... The person usually never knows about it (because it was withdrawn before they saw it)
Can an acceptance be different from an offer?
Acceptance must be positive, unconditional, unequivocal, unambiguous and must not change, add to, or qualify the terms of the offer
What is the UCC knockout rule?
If an issue is covered one way in the offer, and another in the acceptance, the conflicting clauses knock each other out, and neither enters the contract, but A gap filler is used
What is an illusory promise?
Statement that looks like a promise, but isn't (doesn't limit your future options). Apparent commitment that actually leaves a way out
What are some examples of language used in illusory promises?
Insofar as I want to buy, I may terminate my obligation anytime
What is the effect of an illusory promise?
Neither party is bound
If there is a contractual relationship between two parties for a long period of time, and the contract says either can cancel at any time, what do courts imply?
A reasonable notice requirement before either can terminate, to make sure contract is not illusory
If a party making a promise doesn't provide consideration, is a contract enforcible?
What is the implied promise in every contact under the UCC?
To use best efforts
Are the two most common types of illusory promises?
- promise to do an act "if I want to" (still free todo what he wants)
- right to terminate at will without notice
If orange crush makes an agreement with Coke that they can make their drink and Coke can cancel at any time, is that contract proper?
No, it is void because of lack of mutuality