Business Law Ch 14

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Business Law Ch 14
2013-07-16 20:25:02
Business Law 14

Business Law Ch 14
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  1. acceptance
    A key factor in the agreement element of a contract; consists of the agreement of one party, the offeree, to the terms of the offer in the contract made by the other party, the offeror.
  2. communication
    In a contract, an offer made to the offeree or the offeree’s agent.
  3. counteroffer
    An offer made by an offeree to the offeror that relates to the same matter as the original offer but proposes a substituted bargain that differs from the one proposed in the original offer.
  4. definite and certain terms
    The requirement, under common law, that a contract must include and clearly define all material terms.
  5. intent
    The intended purpose or goal of an action, especially in a contract.
  6. mailbox rule
    A rule which holds that an acceptance is valid when it is placed in the mailbox, whereas a revocation is effective only when received by the offeree. In some jurisdictions the mailbox rule has been expanded to faxes.
  7. material terms
    In a contract, the terms that allow a court to determine what the damages are in the event that one of the parties breaches the contract; include the subject matter, quantity, price, quality, and parties.
  8. mirror-image rule
    A principle which holds that the terms of an acceptance must mirror the terms of the offer. If the terms of the acceptance do not mirror the terms of the offer, no contract is formed and the attempted acceptance is a counteroffer.
  9. option contract
    An agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror’s agreement to hold the offer open for a specified period of time.
  10. rejection
    Termination of a contract that occurs when an offeree does not accept the offer or terms of the contract.
  11. revocation
    Termination of a contract that occurs when an offeror takes back the initial offer and annuls the opportunity for the offeree to accept the offer.
  12. termination
    In a contract, the point at which an offer can no longer be accepted as part of a binding agreement or an offeree no longer has the power to form a legally binding contract by accepting the offer; can occur through revocation by the offeror, rejection by the offeree, death or incapacity of the offeror, destruction or subsequent illegality of the subject matter of the offer, or lapse of time or failure of another condition stated in the offer.