Chapter 6&7 Review Guide

An agreement between two or more parties that create an obligation

• Promise
• Understanding
• Contract

The party who makes an offer to form a contract

• Oferee
• Offeror
• Negotiator

the party to whom an offer is made

• Offeree
• Offeror
• Contractor

an agreement to enter into a contract that is evidenced by words or conduct between the parties

• Contact
• Genuine Assent
• Proposal

what a person demands and generally must receive in order to make his or her promise legally binding

• Obligation
• Consideration
• Promise

The ability to understand the terms of a contract

• Negotiability
• Capacity
• Causation

Withdrawing an offer before it is accepted

• Revocation
• Correction
• Nevermind

Offeree’s response to an offer which modifies it

• Acceptance
• Correction
• Counteroffer

Contractual proposal in writing by a merchant stating how long the offer is to stay open

• Firm offer
• Option
• Soft offer

When a party to whom an offer has been made agrees to the proposal

• Rejection
• Acceptance
• Counteroffer