Was a contract formed? Flashcards
(19 cards)
Rule for was a contract formed?
Based on UCC §1-201(b)(12), a contract is defined as the total legal obligation that results from the parties’ agreement. Under §1-201(b)(3), an agreement is defined as the bargain of the parties in fact, as found in their language or inferred from other circumstances including course of performance, course of dealing, or usage of trade. Under §2-204(1), a contract may be made in any manner sufficient to show agreement. Because the statute is ambiguous and does not explain show agreement, I’m going to look at statute interpretation to further the analysis.
What is the second paragraph of the rule fro UCC?
In order to find a contract, courts will look for mutual assent, i.e., a meeting of the minds that consists of an offer and an acceptance, and also requires consideration. In order to determine if mutual assent and consideration is present the court utilizes the objective theory of interpretation. This theory of interpretation analyzes the oral or written words, conduct, and circumstances from the perspective of a reasonable person in the position of the hearer would understand. To determine if a contract was formed, I will first look to for an offer, then acceptance, and then consideration. If all three are found, I will conclude that a contract has been formed.
What is the rule for Offer?
An offer is the (1) manifestation (2) of willingness to (3) enter into a bargain so made as to (4) justify (5) another person in understanding that their (6) assent to that bargain is invited and will (7) conclude the deal now. There are seven elements of an offer and all seven elements are necessary.
What is the meaning. of manifestation in offer?
(1) Manifestation, i.e., tangible and perceived expression shown through conduct or words (oral or written)
What is the meaning of willingness in offer?
(2) Willingness, i.e., a present intent to conclude a deal now
What is the meaning of a bargain in offer?
(3) A bargain, i.e., an exchange,
What is the meaning of to be justified in offer?
(4) To be justified, i.e., having reasonable certainty that the offer is expressed with sufficient detail such that a court could identify a breach and provide a remedy
Wst is the meaning of the another person in understanding for offer?
(5) Another person, i.e., a party other than the offeror who the communication is specifically directed towards
What is the assent to that bargain is. invited?
(6) Assent to that bargain. is invited, i.e., the communication commands a yes or a no answer
What is the sevent element in offer A?
(7) To conclude, i.e., there is no other information to be conveyed by the offeror,
What is the Rule for offer communicated?
An offer is not effective until it has been communicated. Once the offer is communicated and received (actual or constructive), it creates the power of acceptance in the offeree.
What is the rule for acceptance?
An acceptance is a (1) manifestation of (2) unequivocal assent to (3) the terms thereof made by the (4) offeree in the (5) manner invited or required by the offeror. There are 5 elements and all 5 elements are necessary.
What is the meaning fo unequivocal assent?
(2) An unequivocal assent, i.e., an agreement to the same bargain proposed by the offeror
What is the meaning of manifestation?
(1) manifestation, i.e., tangible and perceived expression shown through conduct or words (oral or written). It is tangible because someone else can see it or touch it or hear it. It is perceptible because someone else can understand it.
What do the terms mean in acceptance?
(3) To the terms, i.e., an understanding of the content of the offer as specified by the offeror.
What does the oferee in mean in acceptance?
(4) An offeree i.e., the party whom the offeror invites to furnish consideration
What does the manner invited mean in acceptance?
(5) In the manner invited or required by the offeror, i.e. an agreement to the mode of acceptance specified by the offeror, and if not specific or exclusive (clear, explicit and definite), then by reasonable means.
What is the rule for acceptance communicated?
Acceptance is communicated and complete, actual or constructive, upon receipt by the offeror.
What is the rule for revocation?
An offer is freely revocable until acceptance, and a contract cannot be created after the power of acceptance has been terminated. Offers have a duration and the offeror is the master of the offer. Thus, the offer can be revoked. An offer can be revoked directly or indirectly.
