Business Law Mid Term II Key Concepts

Agreement shall be kept

• Manifestation of offeror’s intent to be bound
• -Intent determined by objective, “reasonable person” standard
• -Preliminary negotiations and advertisements do not constitute offers
• Definite and certain terms (including subject matter, price, quantity, quality, and
• parties)
• Communication of offer to offeree (or offeree’s agent)

Acceptance by mail effective when placed in mailbox; however, revocation of offer effective only when received by offeree

• 1. A false statement about a past or existing fact that is material to the contract
• 2. Intent to deceive, which can be inferred from the particular circumstances
• 3. Justifiable reliance on the false statement by the innocent party to the agreement
• 4. Damages