Ch 12: Agreement in Traditional and E-Contracts

An essential element for contract formation by which the parties must agree on the terms of the contract and manifest to each other their mutual assent to the same bargain.

Theory by which a party's words and conduct are held to mean whatever a reasonable person in the offeree's position would think they meant.

A promise or commitment to do or refrain from doing some specified action in the future.

1) The offeror must have a serious intention to become bound by the offer.2) The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.3) The offer must be communicated to the offeree.

1) Expressions of opinion 2) Statements of future intent 3) Preliminary negotiations4) Advertisements5) Online auctions 6) Live auctions7) Auctions with and without Reserve 8) Agreements to agree 9) Preliminary agreements (sometimes)

1) The identification of the parties 2) The identification of the object or subject matter of the contract (also the quantity when appropriate), including the work to be performed, with specific identification of such items as goods, services, and land.3) The consideration to be paid 4) The time of payment, delivery, or performance

1) Revocation2) Rejection3) Counteroffer

An offeror's act of withdrawing an offer.

Usually the offer can be withdrawn as long as it is communicated to the offer before the offer accepts. It becomes effective upon being physically received.

1) Express repudiation of the offer (such as "I withdraw my previous offer of October 17")2) Performance of acts that are inconsistent with the existence of the offer and are made known to the offeree (such as selling the offered property to another person in the presence of the offeree).

A form of irrevocable offer. It is created when an offeror promises to hold an offer open for a specified period of time in return for a payment (consideration) given by the offeree. This action takes away the offeror's power to revoke the offer for the period of time specified in the option.

A rejection of the original offer and the simultaneous making of a new offer.

A common law rule by which the offeree's acceptance is required to match the offeror's offer exactly.

1) Lapse of time2) Destruction of the specific subject matter of the offer3) Death or incompetence of the offeror or the offeree4) Supervening illegality of the proposed contract. ( A statute or court decision that makes an offer illegal automatically terminates the offer.

)

1) By action of the parties2) By operation of law

A voluntary act by the offeree that shows assent (agreement) to the terms of an offer. It can be words or conduct.

1) When an offeree takes the benefit of offered services even though he or she had an opportunity to reject them and knew that they were offered with the expectation of compensation.2) When the offeree has had prior dealings with the offeror.

Also known as the deposited acceptance rule.

Says that acceptance takes effect, thus completing formation of the contract, at the time the offeree sends or delivers the communication via the mode expressly or impliedly authorized by the offeror. This means that if the authorized mode of communication is the mail, then an acceptance becomes valid when it is dispatched (placed in the control of the US Postal Service) - not when it is received by the offeror.

Electronic contracts, or contracts formed online.

1) Acceptance of terms2) Payment3) Return policy4) Disclaimer5) Limitation on remedies6) Privacy policy 7) Dispute resolution

A clause contained in many online contracts which indicates the forum, or location, in which contract disputes will be resolved.

Clause included in many online contracts which specifies that any contract dispute will be settled according to the law of a particular jurisdiction, such as state or country.

A compilation of common law contract principles. It states that parties may agree to a contract "by written or spoken words or by other action or by failure to act."

The agreement resulting from the act of clicking on a box indicating "I accept" or "I agree" to accept an online offer.

An agreement for which the terms are expressed inside the box in which the goods are packaged.

Terms which occur in transactions conducted over the internet and do not require Internet users to assent to the terms before downloading or using certain software.

These terms are often unenforceable because they do not satisfy the agreement requirement of contract formation.

An electronic sound, symbol, or process attached to or logically associated with a record and executed for adopted by a person with the intent to sign the record.

Agreement in which a buyer and seller who frequently do business with each other agree in advance on the terms and conditions that will apply to all transactions subsequently conducted electronically.

Information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.