Elements of a Contract
What do you get when you have a valid offer and a valid acceptance?
Genuine Agreement
The taking back of an offer is called....
Revocation
What do you call a legally binding contract?
Valid
True or False - Advertisements can never be offers.
False - if they deal with the problem of numerous poeple seeing the ad OR if there is a performance piece where only one person could complete it.
What kind of contract is stated in words and may be either oral or written?
Express
Who can void a contract?
A Minor
What requires that the acceptance exactly match the terms contained in the offer?
Mirror Image Rule
A contract that amounts to nothing and has no legal effect.
Void
What kind of contracts can you enter into without saying a word?
Implied
This type of contract can be cancelled by one of the parties
Voidable
A contract that contacins promises by both parties.
Bilateral Contract
A binding promise to hold an offer open for a specified time period is...
Option
What kind of contract is one that is stated in words and can be either oral or written?
Express Contract
Legal ability to enter into a contract.
Capacity
A contractual proposal in writing, signed by a merchant, and stating how long it is to stay open.
Firm Offer
The principle that requires an acceptance not to change the terms of an offer is .....
Mirror Image Rule
What types of contracts should be in writing?
Anything over $100 or Real Estate
What if you want to hold an offer open for a period of time?
Option
How long does an offer stay open, if not stated?
A “reasonable” period of time
What is it called when the offer is taken back?
Revocation
List all 6 elements of a contract.
Offer, acceptance, genuine agreement, capacity, legality, consideration
When does the contract come into existence?
When the acceptance is sent (if it is the same form of communication)
What kind of contract has no legal effect and amounts to nothing?
Void
List 3 ways to terminate an offer.
Revocation, rejection, counteroffer, expiration of time, option or death/insanity
Party to who the offer is made.
Offeree