BSL 212 Chapter 10

What constitutes mutual assent?

A valid offer and a valid acceptance creating a binding agreement between parties.

What must an offer be>

Communicated clearly to the offeree, manifest and intent to enter into the contract, and be definite in its terms.

What are the ways to terminate an offer?

An offer can be terminated by revocation, rejection, expiration, death, subsequent illegality, or by operation of law.

What are the rules of revocation?

An offer can be revoked any time prior to acceptance. Merchants are bound to keep an offer open

What is an option contract?

Binds the offeror to keep the offer open for an extended period of time

What is the mirror image rule?

The mirror image rule states that an acceptance must exactly match the terms of the offer for a valid contract to be formed. Any changes or additional terms in the acceptance constitute a counteroffer rather than an acceptance.

What are the rules that effective moment states?

An offer, counteroffer, rejection, and revocation are effective upon reciept. Acceptance is effective upon dispatch.