Contracts Study Guide

Steven Thel Fall 2012 Contract An oral or written agreement between two or more people, an exchange relationship, at least one promise, enforceable. Mutual Assent each party must intend to enter the contract and must agree to do so on mutually agreeable terms. Assent is legally sufficient if each party, by the deliberate use of words or conduct, manifests agreement to be contractually bound. Lucy v. Zehmer joke and intoxication was not enough to get Zehmer out of a contract that Lucy took seriously. Offer Acceptance Offer creates a power of acceptance in the offeree so that she can bring the contract into existence. A counter offer will terminate/reject the original offer and create a new offer RS24 An offer is a manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. Offer must convey a reasonable understanding that the offeror intends a contract and not merely a proposal to contract RS 40 face to face conversation when an offer is made the acceptances must occur before the close of the conversation and no contract is made unless there is an indication that the offer is intended to continue beyond the immediate circumstances When an offer terminates RS36 Silence/inaction cannot constitute acceptance Cannot reject and then accept that would be a counteroffer of sorts A counteroffer terminates an offer Offerors death or mental disability before acceptance terminates offer Offeror can revoke at any time before acceptance, unless there is an option to keep the offer open (notice required) Indirect revocation if the offeree finds out from 3rd party that the offer has been revoked (Dickenson v. Dodds after Dickenson found out Dodds sold the offered property to another he communicated his acceptance but was too late) RSC 42 Power of acceptance is terminated when offeree receives manifestation of intention not to enter into proposed contract RS 43