Contract Formation
Restatement 24
Offer Defined
manifestation of willingness to enter into bargain, so another person knows assent would conclude offer
Restatement 36
Methods of Termination
a. rejection, b. counter offer, c. lapse of time, d. revocation, e. death/incapacity
Restatement 46
Revocation of General Offer
when advertisement or public offer is made public, revocation must be in similar public revocation (like an ad in the newspaper must be revoked by an ad in the newspaper as well) *ads are generally not offers*
Restatement 83
promise to pay debt discharged in bankruptcy
promise after bankruptcy, or during the bankruptcy proceedings, has discharged a debt is binding.
Restatement 12
Capacity to Contract
no one can be bound by a contract who is under guardianship, infant, mental illness, intoxication
Restatement 2
Promise
manifestation of intention to act or refrain from acting
Restatement 38
Rejection
offeree expressly rejects the offer by verbal intent, or rejection is communicated by silence.
Restatement 50
Acceptance of Offer Defined
manifestation of assent to the terms made by the offeror in the manner requested, performance is at least part performance, promise is to complete every aspect of offer
Restatement 33
Certainty
the terms must be reasonably certain and give a basis for determining the breach and for giving an appropriate remedy for the contract.
Restatement 14
Infants
unless a statute provides, 18+ to contract, unless the item is a necessary, then the minor may be able to contract for that item.
Restatement 18
Manifestation of Mutual Assent
each party makes a promise or begins to render performance to constitute manifestation
Restatement 39
Counter-Offer
an offer made by the offeree to the offeror that is on different terms but relates to the same subject matter.
Restatement 52
Who may Accept an Offer
offer can only be accepted by those invited to furnish consideration
Restatement 34
certainty and choice of terms; effect of performance or reliance
even if some terms are different, if the main terms are specific, then it is certain
Restatement 15
Mental illness or defect
person has voidable contractual duties if (1) inability to understand contract (cognitive test), and (2) inability to control impulse to contract (motivational test); if no knowledge of mental illness, and if performance in whole or part, will not be voidable if unjust.
Restatement 19
Conduct as Manifestation of Assent
manifestation of assent is created when you act or refrain from acting, but only if intended and has reason to know the other party believes his conduct equals his assent
Restatement 41
Lapse of Time
when contract says time has lapsed by the terms of the contract or a reasonable time depending on the circumstances of the contract
Restatement 30
Form of Acceptance Invited
any method accepted, reasonable if not specific
Restatement 60
Acceptance of offer that specifies time, place, or manner
must meet specifics of acceptance
Restatement 16
Intoxicated Person
if the other party has reason to know of the intoxication, that person incurs voidable contractual duties
Restatement 26
Preliminary Negotiations
manifestation of willingness to enter into a bargain is not an offer if the offeree knows or has reason to know that the offeror's manifestation is not intended to conclude the bargain until further manifestation is made.
Restatement 42
Revocation by Communication from Offeror Received by Offeree
offeree's power to accept terminated when receives revocation not to contract anymore by the offeror
Restatement 69
Acceptance by silence or exercise of dominion
if the offeree silently takes offered benefits, the courts will often find an acceptance. This is especially true if prior dealings between the parties create a reasonable expectation by the offeror that silence represents an acceptance. In such a case, the offeree is under a duty to notify the offeror if she does not intend to accept.
Restatement 62
Effect of Performance by Offeree Where Offer invites Either Performance or Promise
When an offer can be accepted either by performance or promise, the commencement of performance constitutes an implied promise to complete the performance within the time called for by the offer.
Restatement 19 (3)
Conduct as Manifestation of Assent
The conduct of a party may manifest assent even though he does not in fact assent. In such cases a resulting contract may be voidable because of fraud, duress, mistake, or other invalidating cause.