Revocation Flashcards
(21 cards)
What is a merchant’s firm offer?
A merchant’s firm offer arises when a merchant offers to buy or sell goods in a signed writing and assures that the offer will be held open.
This concept is defined under Article 2.
What must be present in the writing for a merchant’s firm offer?
The writing must be signed and give assurances that the offer will be held open.
This is crucial for the enforceability of the offer.
How long does a merchant’s firm offer remain open if no specific time frame is stated?
A reasonable time, but not exceeding three months.
The exact duration can vary, but three months is the maximum limit.
Is it necessary for both parties to be merchants for a merchant’s firm offer?
No, only the offeror must be a merchant.
This allows for broader applicability of the firm offer concept.
Is consideration required for a merchant’s firm offer to be enforceable?
No, consideration is not necessary for enforceability.
This distinguishes merchant’s firm offers from other types of contracts.
What rule does not apply to the exercise of options?
The mailbox rule
Acceptance is effective when received by the offeror.
When is acceptance effective in the context of option contracts?
When received by the offeror
In this case, it was received on October 1.
What does the battle of the forms provision of Article 2 address?
It lists specific rules for determining what terms are included in a contract when the terms of acceptance do not match the terms of the offer.
What rule has Article 2 abandoned?
The mirror image rule.
What does the mirror image rule require?
An absolute and unequivocal acceptance of each and every term of the offer.
What are gap fillers used for in contract law?
They are used when certain terms are not included in the contract.
Do gap fillers apply to additional or different terms in the acceptance?
No, they do not apply to additional or different terms in the acceptance.
What rule determines the timing of acceptance of a contract?
The mailbox rule.
What does the Article 2 battle of the forms provision state about the offeree’s proposal of additional terms?
The proposal of additional or different terms by the offeree in a definite and timely acceptance is effective as an acceptance, unless made conditional on assent to those terms.
This provision applies unless both parties are merchants.
What happens if the acceptance is expressly made conditional on assent to additional or different terms?
The acceptance is not effective as an acceptance.
It indicates that the offeree is not accepting the original offer as is.
What is the significance of whether both parties are merchants under Article 2?
Whether the additional or different terms become part of the contract depends on if both parties are merchants.
The treatment of additional terms varies based on the status of the parties.
What rule has Article 2 abandoned regarding acceptance of offers?
Article 2 has abandoned the mirror image rule.
The mirror image rule required absolute acceptance of the original offer without deviations.
What does the mirror image rule state about different or additional terms in an acceptance?
Any different or additional terms in the acceptance make the response a rejection and counteroffer.
This rule enforced strict conformity to the original offer.
What is the effect of a definite expression of acceptance in contracts for the sale of goods?
It operates as an acceptance even if it states additional terms.
This is specific to contracts for the sale of goods under the UCC.
Under what conditions do additional terms proposed by the offeree become part of the contract between merchants?
They become part of the contract unless:
* They materially alter the original terms
* The offer expressly limits acceptance to the terms of the offer
* The offeror had already objected to the additional terms or objects within a reasonable time.
These conditions help maintain the integrity of the original offer.
Why would the disclaimer not become part of the contract?
Because the disclaimer materially altered the original terms of the offer.
This alteration is key in contract law and affects the enforceability of the terms.
