Contract Law Test Part 1

Acceptance

occurs when a party to whom an offer has been made agrees to the proposal

Bilateral contract

offeree can accept offer by giving a promise to the offeror instead of performing the contracted-for act

Contract

agreement between two parties that creates an obligation

Counteroffer

offeree's response to an offer which modifies it

Firm offer

contractual proposal in writing by a merchant stating how long the off er is to stay open

Mirror image rule

requires that the terms in the acceptance must exactly match the terms contained in the off er

Offer

proposal by an offeror to do something, provided the offeree does something in return

Offeree

party to whom an off er is made

Offeror

party who makes an off er to form a contract

Option

separate contract arising when the offeree gives the offeror something of value in return for a promise to leave an off er open

Revocation

withdrawing an offer before it is accepted

Unilateral contract

offeror promises something in return for the offeree's performance and indicates that this performance is the way acceptance must be made

Capacity

ability to understand

Consideration

what a person demands and generally must receive in order to make his or her promise legally binding

Genuine Assent

agreement to enter into a contract that is evidenced by words or conduct between the parties (not forced or coerced into contract)

Invitation to Negotiation

Offer coming from party responding to an add; not a guaranteed offer

Merchant

seller who deals regularly in a particular type of goods or who claims special knowledge in a certain type of sales transaction

Jest

Words that take the form of offers but which are spoken as a joke

Express

Contract where terms are either written or oral

Implied-in-fact

Type of contract where conduct creates and defines the terms of the contract

Binding contract

An agreement that can be enforced in a court of law if one of the parties to the agreement fails to fulfill any of its terms