Term
Essentials of an offer
-definition |
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Definition
| indication of willingness to enter into a contract |
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Term
Essentials of an offer
-communication |
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Definition
| offeree must have knowledge of the offer and the offer must be made by the offeror to the offeree |
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Term
Essentials of an offer
-Intent |
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Definition
| determined by an objective standard of what a reasonable offeree would have believed |
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Term
Essentials of an offer
-definiteness |
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Definition
| offer's terms must be clear enough to provide a court with a basis for giving an appropriate remedy |
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Term
Duration of offer
-lapse of time |
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Definition
| offer remains open for the time period specified or, if no time is stated, for a reasonable period of time |
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Term
Duration of offer
-revocation |
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Definition
offer may be terminated at any time before it is accepted, subject to the following exceptions
-option contract - binds offeror to keep an offer open for a specified time
-firm offer - a merchant's irrevocable offer to sell or buy goods in a signed writing ensures that the offer will not be terminated for up to three months
-statutory irrevocability - offer made irrevocable by statute
-irrevocable offer of unilateral contract - a unilateral offer may not be revoked for a reasonable time after performance is begun
-promissory estoppel - noncontractual promise that binds the promisor because she should reasonably expect that the promise will induce the promisee (offeree) to take action in reliance on it |
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Term
Duration of offers
-rejection |
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Definition
| refusal to accept an offer terminates the power of acceptance |
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Term
Duration of offers
-counteroffer |
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Definition
| counterproposal to an offer that generally terminates the original offer |
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Term
Duration of offers
-death or incompetency |
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Definition
| of either the offeror or the offeree terminates the offer |
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Term
Duration of offers
-destruction of subject matter |
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Definition
| of an offer terminates the offer |
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Term
Duration of offers
-suubsequent illegality |
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Definition
| of the purpose or subject matter of the offer terminates the offer |
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Term
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Definition
| positive and unequivocal expression of a willingness to enter into a contract on the terms of the offer |
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Term
Requirements
-mirror image rule |
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Definition
| except as modified by the code, an acceptance cannot deviate from the terms of the offer |
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Term
communication of acceptance
-general rule |
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Definition
| acceptance effective upon dispatch unless the offer specifically provides otherwise or the offeree uses an unauthorized means of communication |
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Term
communication of acceptance
-stipulated provisions |
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Definition
| in the offer the communication of acceptance must conform to the specifications in the offer |
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Term
communication of acceptance
-authorized means |
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Definition
| the restatement and the code provide that unless the offer provides otherwise, acceptance is authorized to be in any reasonable manner |
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Term
communication of acceptance
-unauthorized means |
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Definition
| acceptance effective when received, provided that it is received within the time within which the authorized means would have arrived |
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Term
communication of acceptance
-acceptance following a prior rejection |
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Definition
| first communication received by the offeror is effective |
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Term
communication of acceptance
-defective acceptance |
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Definition
| does not create a contract but serves as a new offer |
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