Term
| What are the elements of a contract? |
|
Definition
1. Offer
2. Acceptance
3. Consideration
4. Legal Capacity
5. Legal Subject Matter |
|
|
Term
| What is required for mutual consent? |
|
Definition
1. Both parties must understand the subject matter.
2. The offeree must communicate their acceptance.
3. The offeror must have made a valid offer.
|
|
|
Term
|
Definition
| Consideration is the property being given up by each party in the contract. |
|
|
Term
| What does it mean to be legally competent? |
|
Definition
| You have to be at least 18 years old, emancipated, and have not been adjudicated incompetent by a court of law. |
|
|
Term
| When is an advertisement considered an offer? |
|
Definition
This type of advertisement is a specific advertisement.
1. It offers you terms and conditions to pay for an offer.
2. Specific Identification (i.e. Car VIN) |
|
|
Term
| What terms should be in an offer? |
|
Definition
1. Parties in contract
2. subject matter and quantity
3. consideration to be paid.
4. time of performance |
|
|
Term
| What terminates an offer? |
|
Definition
1. Lapse of time
2. Death of party or parties
3. rejection
4. revocation
5. illegality of the offer
6. destruction of subject matter |
|
|
Term
| When is an offer rejected? |
|
Definition
1. Rejection given by offeree to offeror.
2. Counteroffer.
3. conditional acceptance-acceptance based on changed terms and/or conditions |
|
|
Term
| When is an offer revoked? |
|
Definition
1. Offeror communicates rejection to offeree before acceptance.
2. When the rejection is communicated by any reasonable means.
3. An open offer may be terminated via notice of withdrawal.
4. effective when recieved. |
|
|
Term
| When is an offer not revocable? |
|
Definition
1. There is a set time period for acceptance.
2. The item is up for a no reserve auction and bidding has started.
3. NOTE: A third party offer to buy the subject matter does not terminate the offer. |
|
|
Term
| How is acceptance demonstrated? |
|
Definition
1. Communication through word or actionas a reasonable person would understand.
2. Taking possession or exercising dominion on something may be acceptance.
3. SIlence-with circumstances that apply, silence may constitute acceptance . |
|
|
Term
| What is a unilateral contract? |
|
Definition
| One party makes a promise, and the other party accepts by performance. It may not be revoked after performance starts. There is no need to give acceptance via communication. |
|
|
Term
| What is a bilateral contract? |
|
Definition
| In a bilateral contrac,t both parties exchange promises; if the offeror does not want ot be bound until after profrmance, it is not a bilateral contract. If you use a certain medium of acceptance, than it is definitely a bilateral contract. |
|
|
Term
| What is the mailbox rule and how does it work? |
|
Definition
| Under MR rule, acceptance is effective upon dispatch in proper medium by offerree. If the mode is unauthorized, then effective only upon reciept. If the reject is sent first, whichever gets there first is the result of the offer. |
|
|
