Download Understanding Contracts: Terms and Conditions and more Quizzes Finance in PDF only on Docsity! TERM 1 Agreement DEFINITION 1 Offer + Acceptance TERM 2 Offeror DEFINITION 2 The person who makes the offer TERM 3 Offeree DEFINITION 3 The person to whom the offer is made TERM 4 Merchant DEFINITION 4 Under the UCC, A person who regularly sells goods as her business or trade or employs people to sell those good; anyone who works for a selling those good or anyone who holds herself out as a "merchant" or a "dealer" TERM 5 Meeting of the minds DEFINITION 5 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 agreementA judge or jury will make an objective assessment of any disagreement about whether a contract was made TERM 6 Offer DEFINITION 6 An intentional act or statement, by the offeror, that proposed definite and certain terms, which is communicated to the offeree and permits the other to create a contract by accepting those thermsThe terms of the trade must be defined TERM 7 Material Terms DEFINITION 7 The Material Terms are those that allow a court to determine what the are in the event that one of the parties breaches the contract. TERM 8 Open Price DEFINITION 8 The UCC estblishes a pirce, based on market value or valuation by a neutral party, at the time of delivery TERM 9 Output Contract DEFINITION 9 Obligates a seller to sell all of his output to one buyer, who agrees to buy it. TERM 10 Requirement Contract DEFINITION 10 Obligates a buyer to obtain all of his needed goods from the seller TERM 21 Bilateral Contract DEFINITION 21 The Offeree generally must accept by making a promise TERM 22 Unilateral Contract DEFINITION 22 The offeree must accept by performing TERM 23 Mirror Image Rule (Common Law) DEFINITION 23 Requires that acceptance be on precisely the same terms as the offer TERM 24 Additional Terms DEFINITION 24 Terms that bring in new issues TERM 25 Additional Terms Under UCC DEFINITION 25 Additional terms are permitted in contracts for the sale of goods. Additional terms do not negate acceptance unless acceptance is made expressly conditional on assent to additional terms TERM 26 Different Terms DEFINITION 26 Terms that contradict terms in the offer TERM 27 Medium and Manner of Acceptance DEFINITION 27 If an offer demands acceptance in a particular medium of manner, the offeree must follow those requirements TERM 28 Mailbox Rule DEFINITION 28 An acceptance is generally effective upon dispatch, meaning the moment it is out of the offeree's control
