Chapter 12 – Agreement in Traditional and E-Contracts
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Agreement
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the parties must agree on the terms of the contract and manifest to each other their mutual assent to the same bargain
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Offer
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a promise of commitment to do or refrain from doing some specified action in the future
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Under common law, list the three elements necessary for an offer to be effective
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1. The offeror must have a serious intention to become bound by the offer. 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.
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Revocation
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the offeror's act of withdrawing (revoking) an offer
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Option contract
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another form of irrevocable offer; created when an offeror promises to hold an offer open for a specified period of time in return for a payment (consideration) given by the offeree
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Counteroffer
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a rejection of the original offer and the simultaneous making of a new offer
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Mirror image rule
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requires the offeree's acceptance to match the offeror's offer exactly - to mirror the offer
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List the 4 events that can terminate a legal obligation by operation of law
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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
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Acceptance
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a voluntary act by the offeree that shows assent (agreement) to the terms of an offer
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E-contracts
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electronic contracts; must meet the same basic requirements as paper contracts
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List the basic requirements of paper contracts
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1. agreement 2. consideration 3. contractual capacity 4. legality
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List the 7 minimum provisions an online offer should include:
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1. Acceptance of terms 2. Payment 3. Return policy 4. Disclaimer 5. Limitation on remedies 6. Privacy policy 7. Dispute resolution
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Forum-selection clause
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indicates the forum, or location (i.e. a court or jurisdiction), in which contract disputes will be resolved
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Click-on agreement
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the agreement resulting from such an acceptance
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Shrink-wrap agreement (shrink-wrap license)
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the terms are expressed inside the box in which the goods are packaged
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E-signature
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an \"electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record
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Cybernotary
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legally recognized certification authority, issues the key pair, identifies the owner of the keys, and certifies the validity of the public key
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Partnering agreement
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a seller and a buyer who frequently do business with each other agree in advance on the terms and conditions that will apply to all transactions conducted electronically
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Record
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information that is inscribed on a tangible medium or that is stored in an electronic and is retrievable in form
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An agreement is normally evidenced by an offer and an acceptance
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True
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A contract does not need to contain reasonably definite terms to be enforced
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False
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Rejection of an offer by the offeree will terminate it
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True
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There are no irrevocable offers
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False
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Under the mirror image rule, an offeree's acceptance does not need to adhere exactly to the terms of the offeror's offer to create a contract
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False
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It is not possible for an offeree to accept an offer in silence
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False
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An offer terminates when the time specified in the offer has passed and the offeror has given one last chance to the offeree to accept
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False
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Anyone who is aware of an offer can accept it and create a binding contract
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False
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Acceptance is timely if it is made before an offer terminates
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True
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Acceptance is effective when sent if the offeree uses a mode of communication authorized by the offeror
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True
