Business Law I: Offer and Acceptance

These flashcards cover key concepts related to agreements, offers, and acceptances in business law, aimed at preparing for exams.

Agreement/Consensus

An agreement between two or more parties that creates legally binding and enforceable rights and duties.

Contract

An agreement that creates legally binding and enforceable rights and duties between parties.

Offer

A proposal setting out the terms on which the offeror is willing to contract.

Acceptance

The agreement to the terms of the offer, which concludes the contract.

Serious Intention

The parties must have the intention to create a legally binding contract.

Contractual Capacity

The ability of parties to enter into a legally binding contract.

Meeting of Minds

Both parties must understand and agree on the terms of the contract.

Lawful Agreement

The agreement must be for a lawful purpose and not contrary to public policy.

Possibility of Performance

The obligations under the contract must be capable of being performed.

Formalities

The agreement must comply with legal requirements specific to that type of contract.

Certain Terms

The terms of the agreement must be clear and specific.

Invitation to Treat

An invitation to make an offer, not an offer in itself.

Revocation of Offer

Withdrawal of an offer by the offeror before acceptance.

Lapse of Offer

An offer no longer exists after a specified time or reasonable time.

Rejection of Offer

Refusal of the offer by the offeree, which prevents acceptance.

Counteroffer

A response to an offer that modifies its terms, thereby rejecting the original offer.

Bait Marketing

Advertising goods at a specific price while ensuring availability for consumers.

Negative Option Marketing

Promotion of goods that automatically creates a contract unless the consumer declines.

Cooling-Off Period

A period during which a consumer can cancel a contract without penalty.

Equitable Remedy

A legal remedy that is typically not monetary, but involves restoring a right.

Common Law

Law derived from judicial decisions rather than statutes.

Consumer Protection Act (CPA)

Legislation aimed at protecting consumers against unfair trade practices.

Conditioned Offer

An offer that is subject to certain terms being met.

Express Offer

An offer communicated through spoken or written words.

Implied Offer

An offer inferred from the conduct of the parties.

Specific Offer

An offer made to a particular individual or group.

General Offer

An offer made to the community at large.

Acceptance in Writing

Formal acceptance of an offer documented in written form.

Electronic Communications and Transactions Act (ECTA)

Legislation regulating electronic contracts and communications.

Information Theory

The theory that acceptance is valid only when communicated to the offeror.

Expedition Theory

Acceptance takes effect when the acceptance letter is posted.

Reception Theory

Contract formation occurs when acceptance is received by the offeror.

Legally Binding

A contract that is enforceable by law.

Counteroffer

A new offer made in response to an original offer.

Express Acceptance

Acceptance made explicitly, either verbally or in writing.

Implied Acceptance

Acceptance inferred from actions or conduct rather than words.

Mirror Image Rule

Acceptance must match the terms of the offer exactly.

Promisor

The person making the proposal or offer.

Promisee

The person to whom the proposal or offer is made.

Essential Terms

The fundamental elements necessary for the contract to be valid.

Vague Terms

Unclear or indefinite terms that can make a contract unenforceable.

Social Arrangements

Proposals that do not constitute legal offers.

Adverts as Offers

Situations where advertisements can be considered offers based on context.

Legal Obligations

Duties that parties are required to perform according to law.

Consumer Rights

Legal entitlements held by consumers regarding the purchase of goods or services.

Formal Contracts

Contracts that require a specific format or method of execution.

Performance of a Contract

Fulfillment of the obligations as stated in the contract.

Default Theory

A guiding principle used when no specific theory of acceptance applies.

Court Jurisdiction

The authority of a court to hear and decide a case.

Spoken Offer

An offer communicated verbally.

Written Offer

An offer documented in writing.

Proposal

A suggestion put forward for consideration.

Contractual Intent

The intent of parties to create a legal relationship with their agreement.

Fundamental Requirement

Core principles that must be adhered to for a valid contract.

Statutory Requirements

Legal obligations established by law that must be followed.