Agreement Offer and Acceptance

1
AgreementOffer and Acceptance

• Chapter 2

2
Offer

• Offer A promise or commitment to do or refrain
  from doing some specified thing in the future.
  Offer must
• 1. Indicate a present and serious intent to be
  bound.
• 2. Be reasonably certain and definite and contain
  the material terms of the agreement.
• 3. Be communicated by the offeror to the offeree.

3
Offer

• Intention
• Objective intent
• Expression of opinion is not an offer.
• Preliminary negotiations
• Advertisements Auctions
• Material Terms
• Terms which will allow a court to determine the
  obligations of each party and determine a remedy
  in the event of a breach.

4
Offer

• Communication
• 1. Offer must be communicated by offeror or
  offerors authorized agent.
• 2. Offeree must be aware of offer when he/she
  accepts the offer.

5
Termination of Offer

• By action of the parties
• Revocation
• Option contracts
• Detrimental Reliance
• Rejection
• Counteroffer

6
Termination

• By Operation of Law
• Lapse of time
• Destruction of subject matter
• Death of incompetence of either party
• Supervening illegality

7
ACCEPTANCE

• Mirror Image Rule
• Acceptance must be the mirror image of the offer.
  (exactly the same as the offer).
• Any different or additional terms will be a
  counteroffer which will terminate the offer
  resulting in no contract

8
Acceptance

• Acceptance is effective when sent
• Mailbox Rule, also known as the Dispatch Rule
  or the Deposited acceptance Rule.
• Rule does not apply if
• Authorized means of communication is not used
• Dispatch is defective (i.e. insufficient postage)
• Offer requires receipt
• Prior rejection sent