Chapter 11
Key Terms
Communicating Media: these are tvs, radios, and web where offers are’nt intended for
anyone specific thus are not generally considered real offers
Limited Class of Offeree: these type of offers pertain to a limited number of offerees,
such as the first ten people
Offer: a clear and defined proposal insinuating a contract
Output-Requirement: an exception to the quantity terms for contracts under the UCC
which allows merchants to purchase goods on a need based contract.
Reasonable Third-Party: one who would use the objective test to qualify whether or not
an exchange could be considered a contract.
First Come First Serve: a type of limited number offer pertaining to the first one.
Lucy V. Zehmer: A case is which the court decided that the contract between a farmer
and his friend in a semi-drunken state was legal and binding. In brief, the farmer was
trying to play a joke on his friend when he jokingly signed a napkin promising to sell his
land.
Offeror: the one who makes the offer
Power of Acceptance: this power only rest with the offeree whose consent or decline
would cause the establishment of a contract.
Reward K: This is a type of offer which can only be obtained through an act.
Gap Filling: in a contract where the price is not established, the courts will decide what
price the contract should have.
Offeree: the person being offered, they have the power of acceptance.
Objective test: asking whether or not a reasonable person would see a certain exchange as
a contract exchange.
Preliminary Negotiation: this is vague and unclear proposals and answers between the
offeror and offeree that does not establish a contract.
Vague K: a vague contract in which one or more elements have been left out, this type of
contract is not enforceable
