Business Law: Chapter 10 Agreement in Traditional and E-Contracts – Flashcards

A mutual understanding or meeting of the minds between two or more individuals regarding the terms of a contract.

A promise or commitment to perform or refrain from performing some specified act in the future.

1) There must be a serious, objective intention by the offeror. 2) The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract. 3) The offer must be communicated to the offeree.

1) The identification of the parties. 2) The identification of the object or subject matter of the contract (also the quantity, when appropriate), including the work to be performed, with specific identification of such items as goods, services, and land. 3) The consideration to be paid. 4) The time of payment, delivery, or performance.

The withdrawal of a contract offer by the offeror. Unless an offer is irrevocable, it can be revoked at any time prior to acceptance without liability.

An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.

A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer for a valid contract to be formed.

1) Lapse of time 2) Destruction of the specific subject matter of the offer. 3) Death or incompetence of the offeror or the offeree. 4) Supervening illegality of the proposed contract. (A statute or court decision that makes on offer illegal automatically terminates the offer.)

A contract under which the offeror cannot revoke the offer for a stipulated time period (because the offeree has given consideration for the offer to remain open).

The act of voluntarily agreeing, through words or conduct, to the terms of an offer, thereby creating a contract.

A common law rule that acceptance takes effect, and thus completes formations of the contract, at the time the offeree sends or delivers the acceptance via the communication mode expressly or impliedly authorized by the offeror.