| A | B |
|---|
| Contracts | Agreements between two or more parties that create obligations. |
| Offeror | The person who makes the offer. |
| Offeree | The person to whom the offer is made. |
| Offer | A proposal by an offeror to do something, provided the offeree does something in return. |
| Revocation | The right to withdraw an offer before it is accepted. |
| Counteroffer | A _____ occurs if the offeree changes the oferor's terms in important ways and sends it back to the offeror. |
| Option | When the offeree gives the offeror something of value in order for a promise to keep the offer open. |
| Firm Offer | Same as an option, only it applies to merchants. |
| Acceptance | Occurs when a party to whom an offer has been made agrees to the proposal. |
| Mirror Image Rule | Requires that the acceptance must exactly match the terms contained in the offer. |
| Bilateral Contracts | Require that the offeree accept by communicating the requested promise to the offeror. |
| Unilateral Contracts | The offeror promises something in return for the offeree's performance. |
| Invitations to Negotiate | Examples include putting signs on merchandise with a certain price, or ads in a newspaper. |
| Consideration | both sides receive something of legal value |
| Capacity | The parties must be able to contract for themselves |
| Genuine Assent | The agreement must not be based on deceiving, mistake or unfair pressure |
