js5389's version from 2015-12-13 02:06
|§ 1.||Contract Defined||A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.|
|§ 2.||Promise; Promisor; Promisee; Beneficiary||(1) A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made. |
(2) The person manifesting the intention is the promisor.
(3) The person to whom the manifestation is addressed is the promisee.
(4) Where performance will benefit a person other than the promisee, that person is a beneficiary.
|§ 4.||How a Promise May Be Made||A promise may be stated in words either oral or written, or may be inferred wholly or partly from conduct.|
|§ 17.||Requirement of a Bargain||(1) Except as stated in Subsection (2), the formation of a contract requires a bargain in which there is a manifestation of mutual assent to the exchange and a consideration…|
|§ 20.||Effect of Misunderstanding||(1) There is no manifestation of mutual assent to an exchange if the parties attach materially different meanings to their manifestations and |
(a) neither party knows or has reason to know the meaning attached by the other; or
(b) each party knows or each party has reason to know the meaning attached by the other.
(2) The manifestations of the parties are operative in accordance with the meaning attached to them by one of the parties if
(a) that party does not know of any different meaning attached by the other, and the other knows the meaning attached by the first party; or
(b) that party has no reason to know of any different meaning attached by the other, and the other has reason to know the meaning attached by the first party.
|§ 22.||Mode of Assent: Offer and Acceptance||(1) The manifestation of mutual assent to an exchange ordinarily takes the form of an offer or proposal by one party followed by an acceptance by the other party or parties. |
(2) A manifestation of mutual assent may be made even though neither offer nor acceptance can be identified and even though the moment of formation cannot be determined.
|§ 24.||Offer Defined||An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.|
|§ 25.||Option Contracts||An option contract is a promise which meets the requirements for the formation of a contract and limits the promisor's power to revoke an offer.|
|§ 26.||Preliminary Negotiations||A manifestation of willingness to enter into a bargain is not an offer if the person to whom it is addressed knows or has reason to know that the person making it does not intend to conclude a bargain until he has made a further manifestation of assent.|
|§ 27.||Existence of Contract Where Written Memorial Is Contemplated||Manifestations of assent that are in themselves sufficient to conclude a contract will not be prevented from so operating by the fact that the parties also manifest an intention to prepare and adopt a written memorial thereof; but the circumstances may show that the agreements are preliminary negotiations.|
|§ 32.||Invitation of Promise or Performance||In case of doubt an offer is interpreted as inviting the offeree to accept either by promising to perform what the offer requests or by rendering the performance, as the offeree chooses.|
|§ 33.||Certainty||(1) Even though a manifestation of intention is intended to be understood as an offer, it cannot be accepted so as to form a contract unless the terms of the contract are reasonably certain. |
(2) The terms of a contract are reasonably certain if they provide a basis for determining the existence of a breach and for giving an appropriate remedy.
(3) The fact that one or more terms of a proposed bargain are left open or uncertain may show that a manifestation of intention is not intended to be understood as an offer or as an acceptance.
|§ 36.||Methods of Termination of the Power of Acceptance||(1) An offeree's power of acceptance may be terminated by |
(a) rejection or counter-offer by the offeree, or
(b) lapse of time, or
(c) revocation by the offeror, or
(d) death or incapacity of the offeror or offeree.
(2) In addition, an offeree's power of acceptance is terminated by the non-occurrence of any condition of acceptance under the terms of the offer.
|§ 38.||Rejection||(1) An offeree's power of acceptance is terminated by his rejection of the offer, unless the offeror has manifested a contrary intention. |
(2) A manifestation of intention not to accept an offer is a rejection unless the offeree manifests an intention to take it under further advisement.
|§ 39.||Counter-Offers||(1) A counter-offer is an offer made by an offeree to his offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer. |
(2) An offeree's power of acceptance is terminated by his making of a counter-offer, unless the offeror has manifested a contrary intention or unless the counter-offer manifests a contrary intention of the offeree.
|§ 40.||Time When Rejection or Counter-Offer Terminates the Power of Acceptance||Rejection or counter-offer by mail or telegram does not terminate the power of acceptance until received by the offeror, but limits the power so that a letter or telegram of acceptance started after the sending of an otherwise effective rejection or counter-offer is only a counter-offer unless the acceptance is received by the offeror before he receives the rejection or counter-offer.|
|§ 43.||Indirect Communication of Revocation||An offeree's power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect.|
|§ 45.||Option Contract Created by Part Performance or Tender||(1) Where an offer invites an offeree to accept by rendering a performance and does not invite a promissory acceptance, an option contract is created when the offeree tenders or begins the invited performance or tenders a beginning of it. |
(2) The offeror's duty of performance under any option contract so created is conditional on completion or tender of the invited performance in accordance with the terms of the offer.
|§ 50.||Acceptance of Offer Defined; Acceptance by Performance; Acceptance by Promise||(1) Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer. |
(2) Acceptance by performance requires that at least part of what the offer requests be performed or tendered and includes acceptance by a performance which operates as a return promise.
(3) Acceptance by a promise requires that the offeree complete every act essential to the making of the promise.
|§ 58.||Necessity of Acceptance Complying with Terms of Offer||An acceptance must comply with the requirements of the offer as to the promise to be made or the performance to be rendered.|
|§ 59.||Purported Acceptance Which Adds Qualifications||A reply to an offer which purports to accept it but is conditional on the offeror's assent to terms additional to or different from those offered is not an acceptance but is a counter-offer.|
|§ 60.||Acceptance of Offer Which States Place, Time, or Manner of Acceptance||If an offer prescribes the place, time or manner of acceptance its terms in this respect must be complied with in order to create a contract. If an offer merely suggests a permitted place, time or manner of acceptance, another method of acceptance is not precluded.|
|§ 63.||Time When Acceptance Takes Effect||Unless the offer provides otherwise, |
(a) an acceptance made in a manner and by a medium invited by an offer is operative and completes the manifestation of mutual assent as soon as put out of the offeree's possession, without regard to whether it ever reaches the offeror; but
(b) an acceptance under an option contract is not operative until received by the offeror.
|§ 69.||Acceptance by Silence or Exercise of Dominion||(1) Where an offeree fails to reply to an offer, his silence and inaction operate as an acceptance in the following cases only: |
(a) Where an offeree takes the benefit of offered services with reasonable opportunity to reject them and reason to know that they were offered with the expectation of compensation.
(b) Where the offeror has stated or given the offeree reason to understand that assent may be manifested by silence or inaction, and the offeree in remaining silent and inactive intends to accept the offer.
(c) Where because of previous dealings or otherwise, it is reasonable that the offeree should notify the offeror if he does not intend to accept.
(2) An offeree who does any act inconsistent with the offeror's ownership of offered property is bound in accordance with the offered terms unless they are manifestly unreasonable. But if the act is wrongful as against the offeror it is an acceptance only if ratified by him.
|§ 71.||Requirement of Exchange; Types of Exchange||(1) To constitute consideration, a performance or a return promise must be bargained for. |
(2) A performance or return promise is bargained for if it is sought by the promisor in exchange for his promise and is given by the promisee in exchange for that promise.
(3) The performance may consist of
(a) an act other than a promise, or
(b) a forbearance, or
(c) the creation, modification, or destruction of a legal relation.
(4) The performance or return promise may be given to the promisor or to some other person. It may be given by the promisee or by some other person.
|§ 73.||Performance of Legal Duty||Performance of a legal duty owed to a promisor which is neither doubtful nor the subject of honest dispute is not consideration; but a similar performance is consideration if it differs from what was required by the duty in a way which reflects more than a pretense of bargain.|
|§ 77.||Illusory and Alternative Promises||A promise or apparent promise is not consideration if by its terms the promisor or purported promisor reserves a choice of alternative performances unless |
(a) each of the alternative performances would have been consideration if it alone had been bargained for; or
(b) one of the alternative performances would have been consideration and there is or appears to the parties to be a substantial possibility that before the promisor exercises his choice events may eliminate the alternatives which would not have been consideration.
|§ 79.||Adequacy of Consideration; Mutuality of Obligation||If the requirement of consideration is met, there is no additional requirement of |
(a) a gain, advantage, or benefit to the promisor or a loss, disadvantage, or detriment to the promisee; or
(b) equivalence in the values exchanged; or (c) “mutuality of obligation.”
|§ 81.||Consideration as Motive or Inducing Cause||(1) The fact that what is bargained for does not of itself induce the making of a promise does not prevent it from being consideration for the promise. |
(2) The fact that a promise does not of itself induce a performance or return promise does not prevent the performance or return promise from being consideration for the promise.
|§ 82.||Promise to Pay Indebtedness; Effect on the Statute of Limitations|
|§ 83.||Promise to Pay Indebtedness Discharged in Bankruptcy|
|§ 84.||Promise to Perform a Duty in Spite of Non-Occurrence of a Condition|
|§ 85.||Promise to Perform a Voidable Duty|
|§ 86.||Promise for Benefit Received||(1) A promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent necessary to prevent injustice. |
(2) A promise is not binding under Subsection (1)
(a) if the promisee conferred the benefit as a gift or for other reasons the promisor has not been unjustly enriched; or
(b) to the extent that its value is disproportionate to the benefit.
|§ 87.||Option Contract||(1) An offer is binding as an option contract if it |
(a) is in writing and signed by the offeror, recites a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or
(b) is made irrevocable by statute.
(2) An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.
|§ 90.||Promise Reasonably Inducing Action or Forbearance||(1) A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires. |
(2) A charitable subscription or a marriage settlement is binding under Subsection (1) without proof that the promise induced action or forbearance.