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What is a gap filler?

Term the court supplies because it thought parties would've agreed on it if it had been brought to their attention, or it aligns with community standards of fairness and policy


Gap fillers are used because it is assumed that what?

Parties must have intended these terms, but just failed to express them


What do The courts consider when creating a gap filler?

The intention of the parties, purpose of the contract, good faith/fair dealing, and reasonableness


Courts refuse to fill material terms if what?

No objective standard can be found


How Can time become an indefiniteness issue?

If there was a duration problem


What is the major duration problem that happens to create indefiniteness?

Agreements to agree


If the contract is silent about a material term, does that necessarily mean it fails for indefiniteness?

No, the term can be implied from surrounding circumstances like trade/local usages, course of dealing, etc. or filled with a gap filler


How do courts deal with agreements to agree?

- CL: denies enforcement of these where further negotiation is contemplated
- modern: courts will supply the missing term if it was intentionally left open


Modernly, agreementsto agree have what implied promise in them?

A promise to negotiate in good faith


If an Employment contract doesn't state duration, what is it assumed to be?

At will employment


What is at will employment?

Employment that lasts as long as an employee is able to perform the work hired for and employer continues in the business


How can employment contracts be terminated?

For a good cause or no cause but not for morally wrong cause


What is considered morally wrong cause if you terminate an employee?

Termination motivated by bad faith, malice, or retaliation (considered a breach)


What are the things must be present in order to make an employee manual enforceable?

- clear language
- handed to employee
- employee reasonably believes it's an offer
- employee accepts by commencing or continuing work afterward


What is mutual agreement?

Offer and acceptance


Mutual agreement must be manifested by what?

The objective theory of contracts


What is the objective theory of contracts?

What a reasonable person would understand the expression to mean


What Is the rationale behind the objective theory of contracts?

To protect the parties' reasonable expectation in relying on a promise


How does the manifestation of assent occur?

When the party uses an expression that he knows/has reason to know the other would reasonably interpret as an offer or acceptance and the other party does interpret it that way


What is the legal effect of an offer?

Creates a power of acceptance in the offeree


What Is the legal effect of a rejection?

Terminates the power of acceptance


What is the legal effect of a conditional acceptance?

Terminates the power of acceptance, except under the UCC


What is The legal effect of a counter offer?

Terminates the offeree's power of acceptance and creates a new power of acceptance in the original offeror


What is the legal effect of acceptance?

Concludes the bargain if it is timely and in proper form


What is an offer?

Commitment or intention to be bound, containing definite terms, communicated to an identified offeree that invites that party to accept the terms


Who is the master of an offer?

The offeror


When is an offer effective?

When received and made known to the offeree


How does the addressee have the power to conclude a bargain if an offer has been made?

By entering the contract and binding the offeror if he gives assent in an appropriate way


Can a written offer be orally revoked?



What is shrinkwrap/click wrap?

Offer to grant a license that you agree to if you unwrap the disc/click the box, and become bound


Can silence by the offeree be an acceptance of an offer?

No, even if the offer states that it is


What are some ways that ambiguity in an offer can be resolved?

Through course of performance and custom or usage of trade


What are the four parts that constitute an offer?

Commitment, communicated, to an identified offeree, containing definite terms