Contracts Cheat Sheet

Contracts Cheat Sheet - MUTUAL ASSENT: mutual assent =...

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MUTUAL ASSENT : mutual assent = offer + acceptance; objective theory : duty to read. Subjective approach : “meeting of the minds,” intent. Lucy : secret intent doesn’t matter if promisee was reasonable in believing offer was serious. Pepsico: if not reasonable to believe offer was serious, no contract. Bilateral contracts : offer = expression of fixed purpose. Preliminary negotiations = invitation to an offer. Offer must be communicated to a specific person (no ads, form letters); duty to accept w/in reasonable amount of time. Mailbox rule : when placed in mailbox unless offer says acceptance must be received. Termination of Power of Acceptance : (a) counter-offer; (b) lapse of time; (c) revocation (must be communicated); (d) death/incapacity. Counter-offer : requires material change, mirror image rule. Qualified acceptance = counter-offer. Unilateral contracts : classical theory : offeror may revoke at any time; modern view : partial performance creates an option contract. CONSIDERATION : (1) benefit/detriment test – offeror receives benefit and offeree receives a detriment. (2) bargain-for-exchange test – the promise must induce the detriment and the detriment must induce the promise (quid pro quo); a promise is bargained for if something is sought by the promisor in exchange for his promise, and something is given by the promisee in exchange for that promise. Promises of past/moral consideration unenforceable. Consideration doesn’t have to be equivalent. MUTUAL ASSENT ISSUES : promissory estoppel (substitute for consideration): a promise which the promisor should reasonably expect to induce action/forbearance and which does is binding if this is only way to avoid injustice.” Options
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Contracts Cheat Sheet - MUTUAL ASSENT: mutual assent =...

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