Offer & Acceptance
What is an offer under the Restatement?
What is A manifestation of willingness to enter a bargain, so made as to justify another person in understanding that their assent is invited and will conclude it
What’s the difference between objective and subjective mutual assent?
What is
- Objective looks at outward manifestations;
- subjective looks at actual internal intent.
What are the three elements of consideration?
What is Bargained-for exchange, something of legal value, and mutual inducement.
What is the goal of expectation damages?
What is
-To give the injured party the benefit of the bargain — put them in the position as if the contract was performed.
What section defines a contract?
What is
- Restatement (Second) §1 — A promise or set of promises for the breach of which the law gives a remedy.
What rule makes an acceptance effective once sent, even if not received?
What is the The Mailbox Rule?
Name one condition that may render a person without capacity to contract under Restatement §12.
What is Guardianship, infancy, mental illness, or intoxication.
Under §71(2), when is a promise or performance “bargained for”?
What is
- When it is sought by the promisor in exchange for their promise and given by the promisee in exchange for that promise.
What are reliance damages?
What is
- Compensation for expenses incurred in reliance on the promise.
What is a promise under §2?
What is
- A manifestation of intention to act or refrain from acting in a way that justifies the promisee in understanding that a commitment has been made.
What are two ways an offer can terminate before acceptance?
What are Revocation, rejection, counteroffer, lapse of time, or death/incapacity.
What happens if a contract is made with a mentally ill person who cannot understand the transaction and the other party knows?
What is The contract is voidable by the mentally ill person (Restatement §15).
What makes an option contract enforceable?
What is
- Separate consideration given for a promise to keep the offer open
What are illusory promises?
What is Promises that give one party discretion not to perform
What’s the difference between the Restatement and the UCC?
What is
- Restatement = general contract law
- UCC = governs sales of goods and commercial contracts.
What case established that advertisements are not offers?
What is Leonard v. PepsiCo.
What does “voidable” mean in contract law?
What is The contract is valid until one party with the right to avoid it chooses to do so.
What is the difference between express, implied-in-fact, and implied-in-law terms?
What is
- Express = stated
- Implied-in-fact = inferred from conduct
- Implied-in-law = imposed by courts.
When does partial performance in a unilateral contract make the offer irrevocable?
What is When the offeree begins performance — Restatement §45.
Under Restatement §211(3), when will a term in a standardized (form) contract not be enforced against a party who assented to it?
What is
- When the other party has reason to believe that the assenting party would not have agreed if they knew the writing contained that term.
What’s the difference between a bilateral and unilateral contract?
What is...
- Bilateral = promise for a promise
- Unilateral = promise for performance.
Under §16, when can an intoxicated person void a contract?
What is When the other party has reason to know they were unable to understand or act reasonably.
Under the UCC, do you need additional consideration for contract modification?
What is
- No, not if it’s made in good faith.
Explain the difference between restitution and liquidated damages.
What is
- Restitution returns benefits conferred
- Liquidated damages are a reasonable pre-estimate of loss agreed upon in the contract.
What Restatement principle governs foreseeability of harm in damages?
What is
- §351 — Damages are limited to losses foreseeable as probable results of the breach.