Name ______________________________________ Date __________ Class _______________
LESSON 6-1 CREATION OF OFFERS
Lesson 6-1 Outline
I.
What Must Be in a Contract?
A. Offer and Acceptance
B. Genuine Assent
C. Legality
D. Consideration
E. Capacity
F. Writing
II.
Requirements of an Offer
A. Contractual Intent Must be Present
1. Jests
2. Statements Made in Anger or Terror
3. Preliminary Negotiations
4. Social Agreements
B. Offer Must Be Communicated to the Offeree
C. Essential Terms Must be Complete and Definite
1. Complete
2. Definite
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Copyright © Thomson/South-Western Publishing
Lesson 6-1 Review
Vocabulary Review
Define the following vocabulary term.
1. offeror
The party who communicates a serious, definite offer.
2. offeree
The party to whom an offer is made.
3. offer A proposal by an offeror to do something, provided the offeree does something in
return.
Concept Review
4.
Describe three ways genuine assent may be missing from an offer or assent.
One party may be deceiving another, there may be an important error in the offer or assent,
or there may be unfair pressure exerted to obtain either the offer or the acceptance.
5.
Why are most advertisements considered invitations rather than offers?
Most advertisements are not complete and clear because they do not address the question of
having limited merchandise to offer for sale. Instead, they invite a consumer to make an
offer to buy one of the limited items.
Goals Review
6.
What are the elements required to form a contract?
(1) There must be a serious, definite offer and the party to whom it was communicated must
accept the offer. (2) There must be genuine assent. (3) What the parties agree to must be
legal. (4) Both sides must receive something of legal value. (5) The parties must have the
capacity to contract for themselves. (6) Some agreements must be in writing.
7.
What are the requirements for an offer?
The requirements for an offer are: (1) The offeror must appear to intend to create a legal
obligation. (2) The offer must be communicated to the offeree. (3) The terms must be
definite and complete.
Chapter 6 Offer and Acceptance
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Name ______________________________________ Date __________ Class _______________
LESSON 6-2 TERMINATION OF OFFERS
Lesson 6-2 Outline
I.
How Can Offers Be Ended?
A. Revocation by the Offeror
B. Time Stated in the Offer
C. Reasonable Length of Time
D. Rejection by the Offeree
E. Counteroffer
F. Death or Insanity of Either the Offeror or Offeree
G. Destruction of the Specific Subject Matter
II.
How Can an Offer Be Kept Open?
A. Options
B. Firm Offers
Lesson 6-2 Review
Vocabulary Review
Define each of the following vocabulary terms.
1. counteroffer
A change the offeree makes to the offeror’s terms.
2. option A binding contract in which the offeree gives the offeror something of value in
return for a promise to keep the offer open.
3. firm offer An offer by a merchant for a sale or purchase of goods that states in a signed
writing how long the offer is to stay open.
4. revocation
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The right to withdraw an offer before it is accepted.
Copyright © Thomson/South-Western Publishing
Lesson 6-2 Review (continued)
Concept Review
5. Why is it prudent to state a time available for acceptance when making an offer?
An offer is alive for a reasonable length of time after it is offered. However, either the
offeror or offeree may misunderstand what a reasonable length of time is. Therefore, to
avoid misunderstandings a time period should be stated.
6. How can an offeree make certain his or her offer is kept open with the offeror?
To be certain his or her offer is kept open an offeree may give the offereor something of
value in return for a promise to keep the offer open. This agreement is a binding contract
called an option.
Goals Review
7. Describe how an offeror can end an offer.
An offeror can end an offer by revoking it before it has been accepted or by stating how and
when the offer must be accepted.
8. Explain how the parties can create offers that cannot be ended by the offeror.
An offeree may give the offeror something of value in return for a promise to keep the offer
open; if this option is accepted by the offeror, the offeror cannot withdraw the offer during
the stated period of the option. A firm offer in a signed writing specifying how long the offer
is to stay open will also prevent the offeror from withdrawing the offer before the specific
time.
Chapter 6 Offer and Acceptance
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Name ______________________________________ Date __________ Class _______________
LESSON 6-3 ACCEPTANCES
Lesson 6-3 Outline
I.
What Is Required of an Acceptance?
A. Only Offerees May Accept
B. The Acceptance Must Match the Offer
C. Acceptance Must be Communicated to the Offeror
1. Silence as Acceptance
2. Bilateral Acceptance
3.
Unilateral Acceptance
4. Modes of Contractual Communication
5. When Acceptances are Effective
Lesson 6-3 Review
Vocabulary Review
Define each of the following vocabulary terms.
1. mirror image rule The rule that the terms in the acceptance must exactly match the terms
contained in the offer.
2. bilateral contracts Contracts in which the offer implies that it can be accepted by giving a
promise instead of performing the contracted-for act.
3. unilateral contracts Contracts in which the offeror requires that the offeree indicate
acceptance by performing his or her obligations under the contract.
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Copyright © Thomson/South-Western Publishing
Lesson 6-3 Review (continued)
Concept Review
4. When does acceptance occur and under what terms is it enforceable?
Acceptance occurs when a party to whom an offer has been made agrees to the proposal. In
creating an enforceable contract, the acceptance must (1) come from the person or persons
to whom the offer was made, (2) match the terms in the offer, and (3) be communicated to
the offeror.
5. What are some of the ways acceptances can be communicated?
Contractual communications can be conveyed by a variety of means, including telephone,
fax, e-mail, face-to-face negotiations, ground mail, and hand signals.
Goals Review
6. What are the requirements of an effective acceptance?
An effective acceptance must be made by the person or persons to whom the offer was made,
match the terms in the offer, and be communicated to the offeror.
7. At what point in time is an acceptance effective?
An oral acceptance is effective at the moment the words are spoken directly to the offeror.
Other acceptances are generally effective at the moment they are sent, if they are sent
properly and the offer has not specified a different means of acceptance.
Chapter 6 Offer and Acceptance
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