chapter 6 offer and acceptance. elements of a contract offer and acceptance (agreement) offer and...
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Chapter 6Chapter 6
Offer and AcceptanceOffer and Acceptance
Elements of a ContractElements of a Contract
Offer and Acceptance (Agreement)Offer and Acceptance (Agreement) Genuine AssentGenuine Assent LegalityLegality Consideration Consideration
Something of ValueSomething of Value CapacityCapacity Writing (Form)Writing (Form)
AgreementAgreement
Offer – A promise to do (or not do) Offer – A promise to do (or not do) something provided the offeree does something provided the offeree does (or does not do) something in return.(or does not do) something in return.
Acceptance – Act or promise in Acceptance – Act or promise in response to an offerresponse to an offer
Offer + Acceptance = Agreement
The OfferThe Offer
Offeror – Makes the offerOfferor – Makes the offer Offeree – Receives the offerOfferee – Receives the offer Legal Focus pg 192Legal Focus pg 192
Statements made in anger lack Statements made in anger lack intentintent
Just Joking, excitementJust Joking, excitement Reasonable personReasonable person
The OfferThe Offer
Requirements of the offer:Requirements of the offer:1.1. Contractual Contractual intentintent must be present in the must be present in the
offeroffer
2.2. Must be Must be communicatedcommunicated to the offeree to the offeree
3.3. TermsTerms must be reasonably must be reasonably definitedefinite
The Offer - IntentThe Offer - Intent
Legal Foci Pg 193Legal Foci Pg 193 Nonoffers Nonoffers
1.1. JestsJests
2.2. Statements made in anger or terrorStatements made in anger or terror
3.3. Expressions of OpinionExpressions of Opinion
4.4. Statements of intentionStatements of intention
5.5. Preliminary NegotiationsPreliminary Negotiations1.1. Advertisements, Catalogs, etcAdvertisements, Catalogs, etc
6.6. Social AgreementsSocial Agreements
The Offer - IntentThe Offer - Intent
An agreement to agreeAn agreement to agree Law in action from Chapter 7Law in action from Chapter 7
AuctioneerAuctioneer The audience actually makes the The audience actually makes the
offeroffer Hammer falls – Contract formedHammer falls – Contract formed
The Offer – Definite TermsThe Offer – Definite Terms
Terms – promises, conditions, and Terms – promises, conditions, and descriptions in a contract.descriptions in a contract.
Important Terms (pg 112)Important Terms (pg 112) Subject MatterSubject Matter PartiesParties PricePrice Time for PerformanceTime for Performance
The Offer – Definite TermsThe Offer – Definite Terms
Legal Focus Top of Pg 197Legal Focus Top of Pg 197 mechanicmechanic
Law in Action Pg 196Law in Action Pg 196 fursfurs
Legal Focus Middle of Pg 197Legal Focus Middle of Pg 197 copierscopiers
The Offer - CommunicationThe Offer - Communication
Legal Focus Pg 198Legal Focus Pg 198 Must be communicated Must be communicated to the to the
offereeofferee
Termination of the OfferTermination of the Offer
Termination by the PartiesTermination by the Parties Termination by LawTermination by Law
Termination by the PartiesTermination by the Parties
RevocationRevocation Must be made same way offer wasMust be made same way offer was
RejectionRejection CounterofferCounteroffer
Termination by LawTermination by Law
Time StatedTime Stated Reasonable lengthReasonable length
Death or Insanity of the partiesDeath or Insanity of the parties Destruction of the Subject MatterDestruction of the Subject Matter IllegalityIllegality
Keeping Offers OpenKeeping Offers Open
WYV – pg 114WYV – pg 114 OptionsOptions Firm OffersFirm Offers
MerchantsMerchants In writingIn writing Binding offer for time stated < 3 monthsBinding offer for time stated < 3 months
Requirements of AcceptanceRequirements of Acceptance
Comes from offereeComes from offeree Sometimes the offeree is the general Sometimes the offeree is the general
publicpublic Matches terms of the offerMatches terms of the offer
Mirror image ruleMirror image rule Counteroffers are not acceptancesCounteroffers are not acceptances
Be communicated to the offerorBe communicated to the offeror
Mirror image ruleMirror image rule
Most states only apply to major Most states only apply to major changeschanges
UCC exceptionsUCC exceptions Pg 119Pg 119
Communication of AcceptanceCommunication of Acceptance
SilenceSilence Tricky, trickyTricky, tricky Exception: prior practice, Old Legal Exception: prior practice, Old Legal
FocusFocus BilateralBilateral
Promise for a PromisePromise for a Promise Words or conductWords or conduct
UnilateralUnilateral Promise for an act Promise for an act
Modes of CommunicationModes of Communication
In person or other effective meansIn person or other effective means Phone, text, mail, messenger, email, Phone, text, mail, messenger, email,
fax, etc.fax, etc. Exception: stipulated in offerException: stipulated in offer
Modes of CommunicationModes of Communication
All forms of contractual All forms of contractual communication are effective once communication are effective once received received EXCEPTEXCEPT AcceptanceAcceptance
Effective once sentEffective once sent Same mode as offer or fasterSame mode as offer or faster Mailbox ruleMailbox rule Unless otherwise stipulated in the offerUnless otherwise stipulated in the offer