Explore the legal terms and concepts related to Contract Formation. Click on any term below to learn more about its definition and applications.
What are requirement and output contracts?
Contracts for the sale of goods can state that the quantity of goods to be delivered is equal to eit...
What are the methods of terminating an offer?
Generally, offers create a power of acceptance within the person to whom the offer was made. If an o...
Though offers can generally be freely revoked, what are the 4 exceptions?
(1) An option contract, (2) a merchant's firm offer, (3) detrimental reliance, and (4) part performa...
What is an option contract?
An option contract, under common law and UCC, is an offer that cannot be revoked. It is created when...
What is the effect of a conditional acceptance on an offer?
A conditional acceptance terminates the original offer, and usually occurs where one party "accepts"...
Under battle of the forms, what happens to additional terms in an acceptance between two merchants?
Additional terms become part of the contract unless they: (1) materially alter its original terms; o...
Under battle of the forms, what happens to different terms in an acceptance between two merchants?
There is no clear authority on this. Some courts treat different terms like additional terms, but ot...
What are the UCC Gap Fillers?
UCC Gap Fillers (1) Price: Reasonable price at time of delivery. (2) Place of Delivery: Seller's pl...
What is the effect of an offeree beginning to perform in response to an offer?
Generally, when an offeree starts performance, it is treated as an implied promise to perform and ac...
What are consideration substitutes?
Generally, a legally binding contract cannot be formed without consideration. However, a promise is...
What is promissory estoppel?
A promise may be enforceable if it is necessary to prevent injustice. This occurs when: (1) the prom...
When are advertisements valid offers?
Advertisements are not offers, unless: (1) the offer is a reward (e.g., a unilateral contract); or (...
What is the Mailbox Rule and when does it apply?
Under the Mailbox Rule, acceptances are generally effective when mailed. There are a couple exceptio...
When is past or moral consideration valid?
Past or moral consideration is only adequate in 2 situations: (1) if a past obligation is not enforc...
Are pre-existing duties valid consideration?
Under the common law, generally, doing what you are already legally obligated to do is not new consi...
What are illusory promises and how do they affect a contract?
An illusory promise is occurs when only one party is bound to perform, and is unenforceable.
