LS Chapter 14: Agreement (Exam 2)

What are the 3 required elements of an offer?

offeror must seriously intend to be bound by the offer; terms must be reasonably certain or definite; communication of the offer to the offeree

Who can accept a K?

only the offeree or an authorized representative

The original offer is considered _______ if the offeree makes a counteroffer.

terminated

Say you send an email agreeing to a contract, then rethink it and realize you want to reject it. You send another email rejecting the contract. Which email will the court go by?

the rejection, because it was the last email sent

What does definiteness of terms mean?

you have a responsibility to know what the thing is you are contracting for (If I say do you want to buy my car but I have 4 cars, I have to be definite about which one I want to sell you)

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances,

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000.

What are not examples of words of intention?

I think, might, maybe

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?

Louis has not accepted the offer as required by the offeror, and there is no contract.

What case is used as an example even today for objective theory of contract?

Lucy v Zehmer

Is the following an example of a valid contract? Why? Ex: you buy a new car and something's wrong with it. Frustrated, you yell, "Ugh! I would sell this for $100!" and someone says, "I'll take it!"

No, because it was said out of anger and wasn't intentionally offered to the offeree

What is an option K?

Offeror promises to keep offer open in exchange for consideration (Walt Disney ex from class)

Freddie offers to sell Lucy five video poker machines. Before Lucy can accept or reject Freddie's offer, the state legislature passes a statute that the purchase, sale, and possession of video poker machines is illegal. In this scenario, Freddie's offer terminates due to which of the following rules?

Subsequent illegality of the subject matter

How is an offeror's intent to be bound by an agreement demonstrated?

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

Under common law, if the offeree's acceptance with terms that are not identical to the offeror's terms, then which of the following is true?

The offeree's attempted acceptance is considered a counteroffer rather than an acceptance.

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event?

When the offeror loses the legal capacity to enter into a contract.

Define revoke in terms of contracts

a party can pull back an offer and can do so as long as there has been no acceptance

Define counter offer in terms of contracts

a party simultaneously rejects the original offer and makes a new one, offeree becomes offeror

How can acceptance be recognized under the law?

by action of the parties or mutual promises

What is permanency of writings?

contracts have to be in writing; even napkins, t-shirts, something that can be written on is considered permanent enough to be binding

An offer made by an offeree to the offeror regarding the same matter as the original offer is called a(n)

counteroffer

Generally, silence is not acceptance even if K says so. Exceptions to this are:

implied-in-fact contracts, unilateral contracts, prior dealings (like regular shipments)

Why can intoxication not always be used as a defense?

just because you're drinking doesn't mean you're drunk; if you can only remember some things about your contract that doesn't absolve what you've done

How to terminate an offer by law?

lapse of time, illegality, death/incapacity of either party, superseding event (natural disaster, act of war, etc)

According to the _______ rule, an acceptance is valid when the offeree places it in the mailbox, whereas a revocation is effective only when the offeree receives it.

mailbox

If an offer provides certain ways of acceptance but does not require a specific way of acceptance, use of a different means of acceptance

results in a contract only after the acceptance is received by the offeror.

"I want to buy this product for this color at this price," and a signature is an example of what type of negotiation?

Type 1

"I'm going to buy a mug" without signature, color, price, etc is a nexample of what type of negotiation?

Type 2

What are the requirements of an offer?

must be definite terms, identifiable offeree, communicated to the offeree

Why are expression, preliminary negotiation, and statements of intent not offers?

there is no intent to be bound

If you are over the age of 18, the court assumes you have fully read the contract in question because

they don't care if you didn't read it if you agreed to the terms