CONTRACT OUTLINE - I MUTUAL ASSENT: A. Mutual assent is a...

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I MUTUAL ASSENT: A. Mutual assent is a 2-way manifold, whereby both parties conduct manifests intent to be bound to a contract B. M.A. is determined by the objective theory of contracts : would a reasonable person in the position of the other party think that the 1 st party’s objective manifestation of intent was binding? C. Performance is a good indicator of mutual assent D. Words and actions, circumstances, evidence intent to be bound E. Parties must express a “meeting of the minds” II THE OFFER : A. An offer gives the offeree a power to accept and the offeror a liability to follow through B. There must be a reasonable expectation that the offeror is willing to enter into the K based on the terms C. 3 questions to ask: 1. Was there an expression of a promise, undertaking, or commitment ? 2. Was there certainty and definiteness in the essential terms? 3. Was there sufficient communication of the terms to the offeree? D. There must be a promise, undertaking, or commitment to enter into a K rather than just an invitation to begin preliminary negotiations a. This can be evidenced by the parties language : technical language (i.e. “I offer you/I promise”) will usually evidence a K. Other language such a mere quotes or “I am asking for” may not (unless backed up by other language) b. The surrounding circumstances may evidence the formation of an offer: was the offer made in jest, while drunk, etc… Even if so, if the offeree reasonably understood the offer to be real, it might be enforced c. Prior relationships of the parties might also evidence an offer E. Advertisements, catalogues, etc. are usually mere invitations to offers. They announce the price at which the seller is willing to receive offers. However , if the language of the ad is definite and certain enough, it may evidence that a promise exists and thus an offer
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III ACCEPTANCE : -Golden rules: the offeror can specify how the offer is to be accepted and the offeror can w/draw the offer at any time before the offeree has communicated acceptance A. A voluntary act of the offeree whereby he exercises the power conferred upon him by the offeror, and thereby creates the set of legal relations called a contract B. General elements to acceptance: 1) Must manifest intent to be bound to the promise 2) Must manifest assent to be bound by the offeror’s terms 3) Must manifest assent in the manner that is sought or required by the offeror C. Identify if the offer is for a bilateral or unilateral promise: a. Bilateral : whereby the offeror is seeking a return promise or commitment to perform (ill promise this if u promise that) b. Unilateral : Whereby the offeror seeks a return performance instead of a return promise (ill be bound if u perform…) D. Acceptance of a Bilateral offer: 1. Acceptance of a bilateral offer can be made either by words or written in a reasonably timely manner 2. Master of K can also specify acceptance terms (i.e. he can suggest a certain manner of acceptance or waive
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CONTRACT OUTLINE - I MUTUAL ASSENT: A. Mutual assent is a...

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