Termination of Offers
1. Termination by Revocation - effective when the offeree receives it.
a. Note that offers are freely revocable, even when the offeror
promised to keep the offer open.
b. Exceptions to the rule of revocability include
1. The offeree must say or do something to accept. In general, silence is not effective as
acceptance, unless parties have otherwise agreed.
In a bilateral contract, the offeree generally must accept by making a promise.
In a unilateral con
A. Consideration means that there must be bargaining that leads to an exchange
between the parties.
Consideration can be anything that someone might want to bargain for. Measurable
value is required. This means thing bargained for must have
Agreement prohibiting business seller from opening competing operation within
two mile radius for two years very likely enforced.
Courts more likely to enforce noncompetes in connection with sale of business.
1. This is a cla
A statement is material where it is likely to influence the decision of the misled party
Where a statement is obviously untrue, reliance is not justifiable.
Where fraud, victim can sue to rescind, sue for damages or some
The damages awarded are called quantum meruit, meaning that the plaintiff gets as
much as he deserved.
- Note the benefit cannot be conferred voluntarily.
- Examples include a nursing home required to provide care to an impoverished
Restitution required to disaffirm. This means party must return consideration received, to extent
he or she is able.
Where consideration received has been lost or destroyed, most states still allow minor to
Minority of states hold tha
Meeting of the Minds
A. The parties can form a contract only if they had a meeting of the minds.
They must understand each other and intend to reach an agreement.
A judge will make an objective assessment of any disagreements about whether a
Mistake also inapplicable where party is aware of risk he or she is assuming. Buyer of car
sold as is, who believes that he can repair the vehicle and get it to run, cannot later sue
for rescission based on mistake.
An exculpatory clause will not be enforced unless it is clearly written and readily visible.
C. Unconscionable Contracts
1. This is a contract courts refuse to enforce because of fundamental unfairness.
2. Typically these contract