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Business Law 9

Chapter 9

TermDefinition
Agreement A meeting of two or more minds in regard tot he terms of a contract.
Offer A promise or commitment to perform or refrain from performing some specified act in the future.
Revocation In contract law, the withdrawl of an offer by an offeror. Unless the offer is irrevocable, it can be revoked at any time prior to acceptance without liability.
Option Contract A contract under which the offeror cannot revoke his or her offer for a stipulated time period and the offeree can accept or reject the offer during this period.
Counteroffer An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer.
Mirror Image Rule A common law rule that requires, for a valid contractual agreement, that the terms of the offeree's acceptance adhere exactly to the terms of the offeror's offer.
Acceptance A voluntary act by the offeree that shows assent, or agreement, to the terms of an offer.
Mailbox Rule A rule providing that an acceptance of an offer becomes effective on dispatch.
Created by: kndandress
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