Formation of Contracts - Offer and Acceptance

These flashcards cover key concepts from the lecture on the formation of contracts, focusing on offer and acceptance.

Agreement

An agreement is composed of an offer and acceptance.

Offer

An offer must have contractual intent, be legal, have definite terms, and be communicated.

Advertising

Advertising is generally not treated as an offer, but as an invitation to negotiate.

Option Contract

An option contract is a promise supported by consideration to hold an offer open for a specific time period.

Firm Offer

A firm offer is a U.C.C. offer that is in writing, between merchants, for the sale of goods, and states it is irrevocable for up to 3 months.

Termination of Offers

Offers can be terminated by revocation, counter-offer, rejection, lapse of time, death or disability of a party, or subsequent illegality.

Acceptance of Offer

Only the offeree has the power of acceptance, and acceptance must be unconditional and not vary material terms.

Silence as Acceptance

Silence can be considered acceptance but is rare and usually applies when there is a long practice of recurring contracts.

Mailbox Rule

Under the mailbox rule, revocations of offers are effective upon receipt, but acceptances are effective upon posting.