CHAPTER 6
Offer and Acceptance
6-1
6-2
6-3
Creation of Offers
Termination of Offers
Acceptances
LAW for Business and Personal Use
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6-1
Creation of Offers
 GOALS
 List the elements required to form a contract
 Describe the requirements of an offer
Introduction to Contract Law
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 2
REQUIREMENTS OF A LEGALLY
ENFORCEABLE CONTRACT
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Offer and acceptance: contract must have an offeror
and an offeree.
Genuine assent: agreement by both parties.
Legality: terms of contract be of a legal nature.
Consideration: what is exchanged for promise.
Capacity: must have legal ability to contract.
Proper form: certain agreements must be in writing.
Contract law songs
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 3
NATURE AND CLASSES OF CONTRACTS
Class 1:
 Executed contracts: all promises met.
 Executory contracts: something remains.
Class 2:
 Express Contracts: terms expressly stated.
 Implied-in-fact Contracts: terms are inferred.
 Implied-at-law (quasi) Contracts: allows enforcement.
Class 3:
 Unilateral contracts: promises something in return for
performance.
 Bilateral contracts: mutual exchange
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 4
REQUIREMENTS OF AN OFFER
 Contractual intent must be present
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Jests
Statements made in anger or terror
Preliminary negotiations
Social agreements
 Offer must be communicated to the offeree
 Essential terms must be complete and
definite
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 5
6-2
Termination of Offers
 GOALS
 Describe the various ways to end offers
 Explain how an offeree can ensure an offer will
remain open
 Roommate Contract
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 6
HOW CAN OFFERS BE ENDED?
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Revocation by the offeror
Time stated in the offer
Reasonable length of time
Rejection by the offeree
Counteroffer My Cousin Vinnie
Death or insanity of either the offeror or
offeree
 Destruction of the specific subject matter
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 7
HOW CAN AN OFFER BE KEPT
OPEN?
 Options: offeree gives offeror consideration
in return to keep offer open.
 Firm offers: offer made in writing, stating how
long offer is to stay open.
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 8
6-3
Acceptances
 GOALS
 Discuss the requirements of an effective
acceptance
 Determine at what point in time an acceptance is
effective
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 9
WHAT IS REQUIRED OF AN
ACCEPTANCE?
 Acceptance must come from the person or
persons to whom the offer was made.
 The acceptance must match the offer.
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 10
WHAT IS REQUIRED OF AN
ACCEPTANCE?
 Acceptance must be communicated to the
offeror:
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Silence as acceptance
Promises as acceptance
Performance as acceptance
Modes of contractual communication
When acceptances are effective
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 11
PREVENT
LEGAL
DIFFICULTIES
 When you seek to enter into a contract . . .
 When negotiating, assume the worst and include terms in
the contract addressing potential problems.
 For important contracts, put offers and acceptances in
writing. If either an offer or an acceptance is made orally,
promptly confirm it in writing.
 Obtain and keep a copy of every important document you
sign.
 Express your intentions in offers and acceptances with
clear, complete, and understandable language.
Continued on the next slide
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 12
PREVENT
LEGAL
DIFFICULTIES
 Remember that the offeror may specify how and when the
offer must be accepted. Otherwise the offeree may use the
same means used by the offeror, a faster means, or other
reasonable means.
 When appropriate, buy an option, if one is available, to
keep the offer open for as long as you need.
 Remember that for an offeror to withdraw or revoke an
offer, the offeree must receive notice. For speed, use the
telephone, e-mail, or fax machine to withdraw or revoke an
offer.
LAW for Business and Personal Use
Chapter 6
© 2012 Cengage Learning. All Rights Reserved.
May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
SLIDE 13