Chapter 6 Business Law Vocabulary

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Contract
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Agreements between two or more parties that create obligations.
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Offeror
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A person who makes an offer.
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Offeree
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A person to whom an offer is made.
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Offer
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Proposal by an offeror to do something, provided the offeree does something in return.
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Revocation
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The right to withdraw an offer before it is accepted.
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Counteroffer
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When the offeree rejects the terms of the offeror and changes them and offers it back.
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Option
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If the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement itself is a binding contract.
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Firm Offer
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An offer with a set amount of time its open.
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Acceptance
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When a party to whom an offer has been made agrees to a proposal.
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Mirror image rule
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Requires that acceptance must exactly match the terms contained in the offer.
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Bilateral contracts
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Require that the offeree accept by communicating the requested promise to the offeror
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Unilateral Contracts
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The offer requires that the offeree indicate acceptance by performing their obligations under the contract.

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