Business Law Chp 7
Terms
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- Invitation to Trade
- An announcement published for the purpose of creating interest & attracting a response by many people. It is not considered a valid offer because it does not contain sufficient words of commitment to sell.
- Fraud, Misrepresentation, Mistake, Undue influence, duress, contract of adhesion, unconscionable contract
- Defective Agreements
- Unilateral
- MIstake made by one party
- Public Offer
- A general offer made to the public at large. An (Advertisement which offers a reward for information that may lead to arrest, or for the return of a lost article) Acceptance of this will result in an enforceable contract.
- Unconscionable Contract
- A contract that is so one sided that it is oppressive and gives unfair advantage to one of the parties.
- Characteristics of a Valid Offer
- An offer must be definite & certain. An offer must be communicated. An offer must intend an enforceable obligation
- Mistake
- A belief that is not in accord with the facts.
- Mutual
- Mistake made by both parties
- Contract of Adhesion
- A contract drawn by one party that must be accepted as is on a take-it-or-leave-it basis
- Counteroffer
- A response to an offer in which the terms and conditions of the original offer are changed
- Undue Influence
- The improper use of excessive pressure by the dominant member of a confidential relationship to convince the weaker party to enter a contract that greatly benefits that dominant party.
- Duress
- The act of applying unlawful or improper pressure or influence to a person to gain his/her agreemetn to a contract
- Bids & Estimates
- A call for a bid or estimate for materials to be furnished or work to be done is considered a request for an offer or an invitation to negotiate that can be accepted or rejected by the person calling for the bid. (Request for proposal)
- Fraud
- The intentional misstatement or nondisclosure of a material (essential) fact made by one party with the hope of influencing the other party.
- Misrepresentation
- A (unintentional) misstatement of a material fact that results in inducing another to enter into an agreement to his/her injury.
- Terminations of Offers
- Lapse of time, revocation by offerer, rejection by offeree, acceptance by offeree