Mutual assent info: According to objective theory of contracts, mutual assent is expressed by anexternal action taken by the party. In the law it doesn’t matter what the party’s intention was,only the external expression. Subjective intentions are difficult to read and may be misread;objective/external actions are a more solid basis for enforcing contracts between any given parties.
: A promise to exchange something or perform an action (or restrain from acting), that becomes binding when accepted by the offeree.
: Agreeing to the specified terms of an offer, resulting in formation of a bindingcontract. Acceptance must be communicated to be valid.
Objective Theory of Assent
: If assent is externally expressed towards a contract, that contractmust be upheld by the party regardless of the party’s intention. (Ray v. William G. Eurice &Bros.)Unilateral mistake: When only one party to a contract misunderstood some term. Not a basis for relief by rescission.
: There must be a
meeting of the minds
and a definite offer and acceptance between the parties for the contract to be enforceable. (
Lonergan v. Scolnick
.)-In common law, acceptance must be the mirror image of the offer. A change in terms creates acounteroffer that terminates other party’s original offer.-Person must state that original offer is still open if wishes it such.
: The main thing in interpreting an offer or acceptance is not what the contract-making partyintended the ad to mean, but what a reasonable person would have thought it meant.(paraphrasing Williston). (
Izadi v. Machado Gus Ford Inc
: Prospective buyer cannot accept a counteroffer after receiving notice of its revocation byaccepting the counteroffer within the time period given in the original offer. (Normile v. Miller).
: Acceptance of an offer is valid upon being dispatched by the offeree, unlesscontract states that it’s not effective until received.-Revocation is effective only when it’s received by a party.-Offeror is the master of the offer—decides mode of communication for acceptance.Unauthorized acceptance is still valid when it is actually received by offeror.
: Agreement in which both parties exchange promises with each other, andcontract becomes binding upon the exchange.-If one item is being sold but there are multiple potential buyers, the advertisement is aninvitation to an offer, not the offer itself.