AFM231 Chapter Notes - Chapter 6: Estoppel

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

Offer: a promise to perform specified acts on certain terms. Invitation to treat: an expression of willingness to do business. Standard form contract: a take it or leave it contract, where the customer agrees to a standard set of terms that favors the other side. Offeree: the person to whom the offer is made. Can happen via: revocation, lapse, rejection, counter-offer, death, or insanity. Option agreement: an agreement where, in exchange for payment, an offeror is obligated to keep an offer open for a specific time. Lapse: the expiration of an offer after a specified or reasonable period. Counteroffer: the rejection of one offer and proposal of a new one. Acceptance: an unqualified willingness to enter into a contract on the terms in the offer. Acceptance can be communicated by words or conduct. Generally, acceptance finalizes an off er only when explicitly communicated (although in some cases the postbox rule may apply, ie when acceptance is mailed not delivered).