Offer and Acceptance

1
Chapter 6

• Offer and Acceptance

2
Elements of a Contract

• Offer and Acceptance (Agreement)
• Genuine Assent
• Legality
• Consideration
• Something of Value
• Capacity
• Writing (Form)

3
Agreement

• Offer A promise to do (or not do) something
  provided the offeree does (or does not do)
  something in return.
• Acceptance Act or promise in response to an
  offer

Offer Acceptance Agreement
4
The Offer

• Offeror Makes the offer
• Offeree Receives the offer
• Legal Focus pg 192
• Statements made in anger lack intent
• Just Joking, excitement
• Reasonable person

5
The Offer

• Requirements of the offer
• Contractual intent must be present in the offer
• Must be communicated to the offeree
• Terms must be reasonably definite

6
The Offer - Intent

• Legal Foci Pg 193
• Nonoffers
• Jests
• Statements made in anger or terror
• Expressions of Opinion
• Statements of intention
• Preliminary Negotiations
• Advertisements, Catalogs, etc
• Social Agreements

7
The Offer - Intent

• An agreement to agree
• Law in action from Chapter 7
• Auctioneer
• The audience actually makes the offer
• Hammer falls Contract formed

8
The Offer Definite Terms

• Terms promises, conditions, and descriptions in
  a contract.
• Important Terms (pg 112)
• Subject Matter
• Parties
• Price
• Time for Performance

9
The Offer Definite Terms

• Legal Focus Top of Pg 197
• mechanic
• Law in Action Pg 196
• furs
• Legal Focus Middle of Pg 197
• copiers

10
The Offer - Communication

• Legal Focus Pg 198
• Must be communicated to the offeree

11
Termination of the Offer

• Termination by the Parties
• Termination by Law

12
Termination by the Parties

• Revocation
• Must be made same way offer was
• Rejection
• Counteroffer

13
Termination by Law

• Time Stated
• Reasonable length
• Death or Insanity of the parties
• Destruction of the Subject Matter
• Illegality

14
Keeping Offers Open

• WYV pg 114
• Options
• Firm Offers
• Merchants
• In writing
• Binding offer for time stated lt 3 months

15
Requirements of Acceptance

• Comes from offeree
• Sometimes the offeree is the general public
• Matches terms of the offer
• Mirror image rule
• Counteroffers are not acceptances
• Be communicated to the offeror

16
Mirror image rule

• Most states only apply to major changes
• UCC exceptions
• Pg 119

17
Communication of Acceptance

• Silence
• Tricky, tricky
• Exception prior practice, Old Legal Focus
• Bilateral
• Promise for a Promise
• Words or conduct
• Unilateral
• Promise for an act

18
Modes of Communication

• In person or other effective means
• Phone, text, mail, messenger, email, fax, etc.
• Exception stipulated in offer

19
Modes of Communication

• All forms of contractual communication are
  effective once received EXCEPT
• Acceptance
• Effective once sent
• Same mode as offer or faster
• Mailbox rule
• Unless otherwise stipulated in the offer