CHAPTER 7 Offer and Acceptance Lessons 7-1 Creation of

1
Offer and Acceptance
CHAPTER 7

• 7-1 Creation of Offers
• 7-2 Termination of Offers
• 7-3 Acceptances

2
Creation of Offers
LESSON 7-1

• List the elements required to form a contract
• Describe the requirements of an offer

3
WHAT IS A CONTRACT?

• A contract is an agreement that courts will
  enforce.
• Contracts between two parties are the basis for
  all economic activity.
• Contracts are the legal links between the
  individuals and companies producing and consuming
  goods and services.

4
CONTRACT REQUIREMENTS

• There are six major requirements that must be
  satisfied before courts will treat transactions
  as contracts.

• Offer and acceptance
• Genuine assent
• Legality

• Consideration
• Capacity
• Writing

5
REQUIREMENTS OF AN OFFER

• Expression of intent to create a legal obligation
• Offer must be complete and clear
• Offer must be communicated to the offeree

6
Termination of Offers
LESSON 7-2

• Describe how an offeror can end an offer
• Tell how an offeree can end an offer
• Explain how the parties can create offers that
  cannot be ended by the offeror

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HOW CAN OFFERS BE ENDED?

• Revocation by the offeror
• Time stated in the offer
• Reasonable length of time
• Rejection by the offeree
• Counteroffer
• Death or insanity of either the offeror or offeree

8
HOW CAN AN OFFER BE KEPT OPEN?

• Options
• Firm offers

9
Acceptances
LESSON 7-3

• Discuss the requirements of an effective
  acceptance
• Determine at what point in time an acceptance is
  effective

10
HOW AREACCEPTANCES CREATED?

• Who can accept an offer?
• Acceptance must match the offer
• Acceptance must be communicated to the offeror

11
ACCEPTANCE MUST MATCH THE OFFER

• Mirror image rule
• Goods

12
ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR

• Silence as acceptance
• Unilateral acceptance
• Bilateral acceptance
• When acceptance is effective