BUSINESS LAW - CHAPTER 10 (Contract Agreement)

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BUSINESS LAW - CHAPTER 10 (Contract Agreement)
2014-03-25 14:26:43

BUSINESS LAW Contract Agreement
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  1. Agreement
    • A mutual understanding or meeting
    • of the minds between two or more individuals regarding the terms of a contract.
  2. Offer
    • A promise or commitment to
    • perform or refrain from performing some specified act in the future.
  3. ICE (What elements are neccesary for a good offer)
    • Intent is serious (no jokes/emotions)
    • Clearly Stated (not vague)
    • Expressed to intended target (public or person)
  4. TIRED (How to terminate an offer)
    • Time Limit - Deadline
    • Illness(old:performance/now:anything)
    • Rejection or Revocation
    • Expiration of reasonable time
    • Death or Destruction (critical object/person ex: special skills (DaVinci example))
  5. Rejection
    When the offeree says no to the offer
  6. Revocation
    When the offeror takes the offer back before it is accepted
  7. Counteroffer
    • An offeree’s response to an offer
    • in which the offeree rejects the original offer and at the same time makes a
    • new offer.
  8. Mirror Image Rule
    • A common law rule that requires
    • that the terms of the offeree’s acceptance adhere exactly to the terms of the
    • offeror’s offer for a valid contract to be formed.
  9. Mailbox Rule / Deposited Acceptance Rule
    • A common law rule that acceptance
    • takes effect, and thus completes formation of the contract, at the time the
    • offeree sends or delivers the acceptance via the communication mode expressly
    • or impliedly authorized by the offeror.
  10. Option Contract
    • A contract under which the
    • offeror cannot revoke the offer for a stipulated time period (because the
    • offeree has given consideration for the offer to remain open).
  11. Acceptance
    • The act of voluntarily agreeing,
    • through words or conduct, to the terms of an offer, thereby creating a
    • contract.
  12. UETA
    Uniform Electronic Transactions Act