Law 3220 Clemson Exam 2 - Questions & Solutions

Acceptance {Ans: The offeree's expression of agreement to the terms of the offer. The power of acceptance is created by a valid offer.}Differentiate between a requirements contract and an output contract. {Ans: Requirements contract: a contract in which the buyer agrees to buy whatever he needs from the seller during a set period and the buyer may buy only from that one seller. The quantity for the contract is what the buyer requires Output contract: a contract in which the buyer agrees to buy all the goods that the seller produces for a set time and at a set price and the seller may sell only to that one buyer. The quantity for the contract is the seller's output}Describe a third party substitution {Ans: substitute agreement (modification): an agreement that replaces the original contract when the two parties agree to different duties. Third party performs duty instead of original party}Define what a condition is used for in a contract and distinguish conditions precedent from consequences subsequent. {Ans: An event that must occur before a contract obligation is triggered. Condition precedent: an event that must occur before performance under a contract is due Condition subsequent: an event