MGMT 402 Exam 2 WITH ANSWERS |\ |\ |\ |\ |\
Acceptance
an action by an offeree that forms a contract based on the terms
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of an offer
|\ |\
advertisement
an invitation for a customer to make an offer
|\ |\ |\ |\ |\ |\ |\ |\
assent
when parties voluntarily and knowingly intend to enter into a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contract
contract
an agreement between two or more parties that can be enforced
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in court
|\
definite
the requirement that an offer must unequivocally demonstrate
|\ |\ |\ |\ |\ |\ |\ |\
that the offeror is willing to enter into a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
,duress
when one party enters into a contract as the result of the other
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
party threatening to take a harmful action
|\ |\ |\ |\ |\ |\
express terms |\
a contract term that has been explicitly agreed upon
|\ |\ |\ |\ |\ |\ |\ |\
fraud in the inception
|\ |\ |\
when one party persuades the other party to sign a contract by
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
claiming that what is being signed is something other than the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contract
fraud in the inducement
|\ |\ |\
when one party voluntarily enters into an agreement because the
|\ |\ |\ |\ |\ |\ |\ |\ |\
other party has misrepresented a material fact
|\ |\ |\ |\ |\ |\ |\
fraudulent misrepresentation |\
when a fraudster consciously intends to deceive another party,
|\ |\ |\ |\ |\ |\ |\ |\ |\
causing that party to rely and act on a misrepresentation
|\ |\ |\ |\ |\ |\ |\ |\ |\
, implied terms |\
a contract term that does not need to be specifically
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
communicated but is inferred by the conduct of the parties or by|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reference to some external authority |\ |\ |\ |\
mailbox rule |\
a rule whereby an acceptance is effective the moment it is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
transmitted by the offeree |\ |\ |\
material terms |\
the essential terms required to form a contract
|\ |\ |\ |\ |\ |\ |\
mirror-image rule |\
a rule whereby offerees must accept offers without changing any
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of their terms
|\ |\
mutual mistake of a material fact
|\ |\ |\ |\ |\
when both parties are mistaken about a fact that is central to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
formation of a contract
|\ |\ |\ |\
Acceptance
an action by an offeree that forms a contract based on the terms
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of an offer
|\ |\
advertisement
an invitation for a customer to make an offer
|\ |\ |\ |\ |\ |\ |\ |\
assent
when parties voluntarily and knowingly intend to enter into a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contract
contract
an agreement between two or more parties that can be enforced
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in court
|\
definite
the requirement that an offer must unequivocally demonstrate
|\ |\ |\ |\ |\ |\ |\ |\
that the offeror is willing to enter into a contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
,duress
when one party enters into a contract as the result of the other
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
party threatening to take a harmful action
|\ |\ |\ |\ |\ |\
express terms |\
a contract term that has been explicitly agreed upon
|\ |\ |\ |\ |\ |\ |\ |\
fraud in the inception
|\ |\ |\
when one party persuades the other party to sign a contract by
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
claiming that what is being signed is something other than the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contract
fraud in the inducement
|\ |\ |\
when one party voluntarily enters into an agreement because the
|\ |\ |\ |\ |\ |\ |\ |\ |\
other party has misrepresented a material fact
|\ |\ |\ |\ |\ |\ |\
fraudulent misrepresentation |\
when a fraudster consciously intends to deceive another party,
|\ |\ |\ |\ |\ |\ |\ |\ |\
causing that party to rely and act on a misrepresentation
|\ |\ |\ |\ |\ |\ |\ |\ |\
, implied terms |\
a contract term that does not need to be specifically
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
communicated but is inferred by the conduct of the parties or by|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
reference to some external authority |\ |\ |\ |\
mailbox rule |\
a rule whereby an acceptance is effective the moment it is
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
transmitted by the offeree |\ |\ |\
material terms |\
the essential terms required to form a contract
|\ |\ |\ |\ |\ |\ |\
mirror-image rule |\
a rule whereby offerees must accept offers without changing any
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
of their terms
|\ |\
mutual mistake of a material fact
|\ |\ |\ |\ |\
when both parties are mistaken about a fact that is central to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
formation of a contract
|\ |\ |\ |\
