Chapter 6
Offer and Acceptance
Elements of a Contract
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Offer and Acceptance (Agreement)
Genuine Assent
Legality
Consideration
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Something of Value
Capacity
Writing (Form)
Agreement
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Offer – A promise to do (or not do)
something provided the offeree does (or
does not do) something in return.
Acceptance – Act or promise in response
to an offer
Offer + Acceptance = Agreement
The Offer
Offeror – Makes the offer
Offeree – Receives the offer
Legal Focus pg 192
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Statements made in anger lack intent
Just Joking, excitement
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Reasonable person
The Offer
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Requirements of the offer:
Contractual intent must be present in the offer
2. Must be communicated to the offeree
3. Terms must be reasonably definite
1.
The Offer - Intent
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Legal Foci Pg 193
Nonoffers
1.
2.
3.
4.
5.
Jests
Statements made in anger or terror
Expressions of Opinion
Statements of intention
Preliminary Negotiations
1.
6.
Advertisements, Catalogs, etc
Social Agreements
The Offer - Intent
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An agreement to agree
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Law in action from Chapter 7
Auctioneer
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The audience actually makes the offer
Hammer falls – Contract formed
The Offer – Definite Terms
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Terms – promises, conditions, and
descriptions in a contract.
Important Terms (pg 112)
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Subject Matter
Parties
Price
Time for Performance
The Offer – Definite Terms
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Legal Focus Top of Pg 197
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Law in Action Pg 196
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mechanic
furs
Legal Focus Middle of Pg 197
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copiers
The Offer - Communication
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Legal Focus Pg 198
Must be communicated to the offeree
Termination of the Offer
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Termination by the Parties
Termination by Law
Termination by the Parties
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Revocation
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Must be made same way offer was
Rejection
Counteroffer
Termination by Law
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Time Stated
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Reasonable length
Death or Insanity of the parties
Destruction of the Subject Matter
Illegality
Keeping Offers Open
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WYV – pg 114
Options
Firm Offers
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Merchants
In writing
Binding offer for time stated < 3 months
Requirements of Acceptance
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Comes from offeree
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Matches terms of the offer
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Sometimes the offeree is the general public
Mirror image rule
Counteroffers are not acceptances
Be communicated to the offeror
Mirror image rule
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Most states only apply to major changes
UCC exceptions
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Pg 119
Communication of Acceptance
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Silence
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Tricky, tricky
Exception: prior practice, Old Legal Focus
Bilateral
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Promise for a Promise
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Words or conduct
Unilateral
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Promise for an act
Modes of Communication
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In person or other effective means
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Phone, text, mail, messenger, email, fax, etc.
Exception: stipulated in offer
Modes of Communication
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All forms of contractual communication
are effective once received EXCEPT
 Acceptance
Effective once sent
 Same mode as offer or faster
 Mailbox rule
 Unless otherwise stipulated in the offer
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