US contract Law at Universität Bochum

= A contract is a promise or a set of promises, for breach of which the law gives a remedy, or the performance of which the law in some way recognizes a duty.

1. voluntary, consensual relationship of two or more parties
2.  intent to be bound
3. exchange relationship
4. promise 
5. enforceability 

= When creating a contract there usually is some form of negotiation, during which, at some point, one party makes a proposal (an offer) and the other agrees (an acceptance).

A contract is binding if there is an offer, acceptance, consideration, mutual assent, an intent to be bound, and both sides agree on all the essential terms

Intention of the parties —> was there a mutual assent?

A contracting party is bound by the apparent intention he or she outwardly manifests to the other party —> different, secret intention is immaterial 

No consideration of the actual intention / the subjective will of the party. Even if the party seeking to avoid the contract “could not possibly have understood” it.

= An offer creates a power of acceptance in the offeree and a corresponding liability on the part of the offeror. For a communication to be an offer, it must create a reasonable expectation in the offeree that the offeror is willing to enter into a contract on the basis of the offered terms.

= Free on board (incoterm) 

FOB specifies at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer

The term FOB is also used in modern domestic shipping within the United States to describe the point at which a seller is no longer responsible for shipping costs.

= International Commercial Terms

Offeree = receiving the offer 

Offeror = making the offer

Revocation terminates the offeree’s power to accept the offer 

1. Is there an expectation of a promise, undertaking or commitment to enter into a contract?
2. Were there certainty and definiteness in the essential terms?
3. Was there communication of the above to the offeree? 

= apparent intention he or she outwardly manifests to the other party (different, secret intention is immaterial)