BMGT 380 Chapter Notes - Chapter 10: Consideration, Cierva C.4, Signify

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 380
• Professor: William Mc Clenahan

Document Summary

06:14: offer: the critically important first step in the contract formation process; says, this is it- if you agree to these terms, we have a contract. Offeror: the person who makes the offer; gives the power to bind themselves to the contract by the acceptance of the offeree. Offeree: the person to whom the offer is being made; given the power to bind the offeror to a contract simply by accepting the offer: intent to contract: the offeror must indicate present intent to contract. Present intent: the intent to enter the contract upon acceptance; signifies that the offeror is not joking, haggling, or equivocating. The subjective standard of intent: used by early american courts as an approach to contract formation, asking whether there was truly a meeting of the minds between the parties. Created uncertainty in the enforcement of contracts because it left every contract vulnerable to disputes about actual intent.