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Law for Business and Personal Us Law for Business and Personal Us © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

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Page 1: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

CHAPTER 6Offer and Acceptance

6-1 Creation of Offers

6-2 Termination of Offers

6-3 Acceptances

Page 2: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 2

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

6-16-1 Creation of Offers

GOALS List the elements required to form a

contract Describe the requirements of an offer

Page 3: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 3

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

FOCUS

What distinguishes a contract from other agreements?

Page 4: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 4

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

WHAT MUST BE IN A CONTRACT?

Offer and acceptance Genuine assent Legality Consideration Capacity Writing

Page 5: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 5

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

What elements are required to form a legally enforceable contract?

Page 6: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 6

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

REQUIREMENTS OF AN OFFER

Contractual intent must be present Jests Statements made in anger or terror Preliminary negotiations Social agreements

Offer must be communicated to the offeree Essential terms must be complete and

definite

Page 7: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 7

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

What are the requirements of an offer?

Page 8: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 8

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

6-26-2 Termination of Offers

GOALS Describe the various ways to end offers Explain how an offeree can ensure an

offer will remain open

Page 9: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 9

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

FOCUS

Can offers to contracts be terminated at different times depending on the subject matter of the offer?

Page 10: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 10

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

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 Destruction of the specific subject matter

Page 11: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 11

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

Explain two ways in which offers can be terminated.

Page 12: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 12

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

HOW CAN AN OFFER BE KEPT OPEN?

Options Firm offers

Page 13: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 13

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

How could an offeree ensure that an offer will stay open for a set period of time?

Page 14: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 14

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

6-36-3 Acceptances

GOALS Discuss the requirements of an

effective acceptance Determine at what point in time an

acceptance is effective

Page 15: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 15

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

FOCUS

Scenario John makes an offer to Paul. Paul is

not interested, but Paul’s friend, who was standing nearby, hears the offer and says she accepts.

Question Has a contract been formed?

Page 16: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 16

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

WHAT IS REQUIRED OF AN ACCEPTANCE?

Only offerees may accept The acceptance must match the offer Acceptance must be communicated to

the offeror Silence, bilateral, unilateral acceptance Modes of contractual communication When acceptances are effective

Page 17: Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Chapter 6Slide 17

Law for Business and Personal UseLaw for Business and Personal Use© Thomson South-Western

What are the requirements of an effective acceptance?