Formation of Contract

1
Formation of Contract

• Offer Acceptance Contract

2
Offer

• Definitions
• Basic elements
• Some problems about offer

3
The Common Law

• An offer is a promise or commitment to perform
  or refrain from performing some specified act in
  the future.
• An offer must involve a definite promise by the
  offeror that he will bind himself if the exact
  terms specified by him are accepted.
• An offer may be made either to a particular
  person or to the public at large.

4
The Chinese Law

• An offer is a proposal with a view to entering
  into a contract with other parties. The proposal
  shall comply with the following stipulations
• (1)    Its contents shall be detailed and
  definite
• (2)   It indicates the intention of the offeror
  to be bound in case of acceptance

5
CISG

• A proposal for concluding a contract addressed
  to one or more specific persons constitutes an
  offer if it is sufficiently definite and
  indicates the intention of the offerors to be
  bound in case of acceptance.

6
What are the basic elements to make an effective
offer?

• a proposal communicated to the offeree
• the sufficiently definite, specific or detailed
  proposal
• (How can an offer be considered
  sufficiently definite?)
• 3. the intention of offeror to be bound in case
  of acceptance

7
Some Problems

• 1.Public offer
• Can an offer addressed to the public (ads)?
• Different countries treat public offer
  differently.
• Germany/ the United States/ CISG
• 2.Open price term
• If the proposal is not definite enough,such
  as,no definite price terms,can it be taken as an
  offer?
• (How to deal with open price terms in
  different legal systems?)

8

• 3. Firm offers
• How does the UCC define firm offer?
• How does the CISG define firm offer
• 4. To withdraw an offer
• (1)How to withdraw the offer legally?
• (2)Whether an irrevocable offer can be
  withdrawn?
• 5. To revoke an offer
• (1) Suppose an offer has reached the offeree,
  but the offeror still wants to cancel it. How
  should he do?
• (2) Under what circumstances can an offer not
  be revoked?
• 6.To terminate an offer

9
True or False statements

• T or F
• An offer becomes effective when the offeror
  dispatches it towards offeree.
• Before the offer reaches the offeree, it can be
  revoked by the offeror at will.
• An irrevocable offer cannot be withdrawn.
• Even if an offer is irrevocable,it may be
  withdrawn.
• After an offer reaches the offeree, its unlikely
  to make it invalid.