Business Law Ch. 12

acceptance
voluntary act by the offeree that shows assent (agreement) to the terms of an offer
[includes either words or conduct]
agreement
includes both offer & acceptance
Essential requirement for contract formation.
[mutual assent]
browse-wrap terms
do not require Internet users to assent to the terms before downloading or using certain software. The person can install the software without clicking “I agree” to the terms of a license.
click-on agreement
agreement resulting from clicking on a box indicating “I accept” to accept an online offer
counteroffer
rejection of the original offer and the simultaneous making of a new offer
e-contract
electronic contract
[must meet same basic requirements as paper contracts]
e-signature
electronic sounds, symbol, or process attached to a record and executed by a person with the intent to sign the record
forum-selection clause
indicates the forum, or location (court or jurisdiction), in which the contract disputes will be resolved
mailbox rule
acceptance takes place once the completed information is sent via the mode agreed to by the offeror
{a.k.a. rule that acceptance of an offer is binding to the offeror when the offer is dispatched.}
mirror image rule
requires the offeree’s acceptance to match the offeror’s offer exactly
[to mirror the offer]
offer
agreement or commitment to do or refrain from doing some specified action in the future
3 elements to an offer:
(1) serious intention to become bound by offer
(2) reasonably certain terms
(3) offer communicated to offeree
option contract
created when an offeror promises to hold an offer open for a specified period of time in return for a payment given by the offeree
-take away offeror’s power to revoke the offer for the period of time specified in the option
[form of irrevocable offer]
partnering agreement
seller and buyer who frequently do business together agree in advance on the terms and conditions that will apply to all transactions subsequently conducted electronically
record
information that is inscribed on a tangible medium or is stored in an electronic or other medium and is retrievable in perceivable form
revocation
offeror’s act of withdrawing (revoking) an offer
shrink-wrap agreement
terms are expressed inside the box in which the goods are packaged
[the part who opens the box is told that he agrees to the terms by keeping whatever is in the box]