Contract Terms and Definitions, Quizzes of Accounting

Download Contract Terms and Definitions and more Quizzes Accounting in PDF only on Docsity! TERM 1 Acceptance DEFINITION 1 a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the offer as measured by the objective theory of contracts TERM 2 Acceptance-upon-dispatch rule (mailbox rule) DEFINITION 2 a rule that states that an acceptance is effective when it is dispatched, even if it is lost in transmission TERM 3 Advertisement DEFINITION 3 an invitation to make an offer, or an actual offer TERM 4 Agreement DEFINITION 4 the manifestation by two or more persons of the substance of a contract TERM 5 Auction DEFINITION 5 a sale in which a seller of goods offers goods for sale through an auctioneer TERM 6 Auction with reserve DEFINITION 6 an auction in which the seller retains teh right to refuse the highest bid and withdraw the goods from sale. unless expressly stated otherwise, an auction is an auction with reserve TERM 7 Auction without reserve DEFINITION 7 an auction in which the seller expressly gives up his or her right to withdraw the goods from sale and must accept the highest bid TERM 8 Authorized means of communication DEFINITION 8 a rule which states that an offeree must accept an offer by means expressly specified in the offer, or if there is no such requirement than by any means customary in similar transactions, usage of trade, or prior dealings between the parties TERM 9 contract DEFINITION 9 an agreement that is enforceable by a court of law or equity TERM 10 counteroffer DEFINITION 10 a response by an offeree that contains terms and conditions different from or in addition to those of the offer. TERM 21 Offerree DEFINITION 21 the party to whom an offer to enter into a contract is made TERM 22 Offeror DEFINITION 22 the party that makes an offer to enter into a contract TERM 23 Option Contract DEFINITION 23 a contract that is created when an offeree pays an offeror compensation to keep an offer open for an agreed upon period of time; these prevent the offeror from revoking his or her offer during the option period TERM 24 Properly Dispatched DEFINITION 24 an acceptance of an offer being properly addressed, packaged, and posted TERM 25 Rejection DEFINITION 25 express words or conduct by the offeree that rejects an offer;; rejection terminates the offer TERM 26 Revocation DEFINITION 26 the withdrawal of an offer by the offeror prior to its acceptance by the offerree TERM 27 Reward DEFINITION 27 an award given for performance of some service or attainment. to collect a reward, the offeree must 1. have knowledge of the reward offer prior to completiung the requested act and 2. perform the requested act TERM 28 Supervening illegality DEFINITION 28 the enactment of a statute, regulation, or court decision that makes the object of an offer illegal; this action terminates the offer TERM 29 Termination of an offer by act of the parties DEFINITION 29 the termination of an offer when one party takes an action that indicates that he is not interested in forming a contract under the terms of the offer, including 1. rejection of an offer by the offerree 2. counteroffer by the offerree and 3. revocation of an offer by the offeror TERM 30 termination of an offer by operation of law DEFINITION 30 the termination of an offer by the operation of law, including 1. the destruction of the subject matter 2. the death of imcompetency of the offeror or the offeree 3. a supervening illegality and 4. lapse of time of the offer TERM 31 Unequivocal acceptance DEFINITION 31 an offeree's acceptance of an offer that is clear, unambigious, and has only one possible meaning