Offer and Acceptance Ch 10
What are the Essentials of an offer?
An offer gives the offeree the power to create a contract by acceptance. To constitute an offer three elements must be present: 1) communication 2) Intent 3) Definiteness
Rejection
An offeror revokes and an offeree rejects. NOT INTERCHANGABLE an offeree may aceept or reject. the offeree does not have to formally reject, can let lapse time. once rejection is received, the offer terminates.
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May be considered an offer where terms are clearly stated and all is required of offeree is specific action. Example: if you limit number of offerees it is a contract. First 5 at the store receive x for x
Rules of offer and acceptance
Offer, revocation, rejection, and counteroffer are effective upon receipt Acceptance is effective upon dispatch. this is true unless offer specifically states otherwise, the offeree responds by some unauthorized means (receive by this time, this date, this method), or If rejection sent first and acceptance after, acceptance is no longer effective upon distpatch, but rather only upon receipt, and only if received prior to the rejection.
Offers made in Jest
Where the offeror claims to have been joking. if a hypothetical reasonable prudent person would believe that the offeror was serious then is an offer
Lapse of time
a contract offer will remain open for a reasonable time unless a specified time is stated. where an offer provides that it will be held open for a specific period of time, the general rule is that the period begins to run on the day the offeree receives it
Acceptance of offer
acceptance of an offer is necessary to create a contract and marks the moment the contract is formed
requirement contract
agreement of a seller to supply a buyer with all of the buyers requirements for certain goods. The code, or UCC, is general terms of output as long as it is in good faith. Common law is exact quantity.
Definiteness
although a statement intended to be an offer under the common law need not cover all possibilities, it must be sufficiently clear on the main terms of subject matter of the contract price quantity quality terms of payment duration *UCC just quantity*
Revocation
an action done by the offeror. Offeror is permitted to revoke an ordinary offer at any time prior to its acceptance by the offeree
Output Contract
an agreement of the buyer to purchase a seller's entire output
Duration of offers
an offer will stay open until it is either accepted, or until one of the following occurrences terminates lapse of time revocation rejection counteroffer death or incompetence of the offeror/offeree destruction of the subject matter to which the offer relates illegality of contract type
Authorized an unathorized means
authorized - any reasonable means to communicate unless the offer stipulates otherwise. If in unauthorized means of communication of an acceptance is received within the same time period it would take to communicate by an authorized means, the authorized means of acceptance is effective upon dispatch
statutory irreconcilability
bid to government that must be open for 30 days
late of defective acceptances
does not create contract
firm offers under the code-
has to be made by merchant, in writing, signed by merchant, has to have assurance of time to aceept offer, if no time listed then reasonable time where longest is 3 months '
Subsequent illegailty
if the performance or subject matter of an offer becomes illegal after the offer is made, but before it is accepted, the offer is terminated
With Reserve
law persumes that the auction is with reserve unless states otherwise. this gives owner the right to pull product off the auction block if price insufficient.
Promises made under extreme conditions
offers made under extreme conditions (like saving ones life) courts do not hold that the victim actually had the intent to make an offer.
Exceptions to general rule of recovation
option contracts, firm offers under the code, statutory irreconcilability, and irrevocable offers of unilateral contracts
stipulated provisions in the offer
sometimes an offer may specify the method of communication that is to be used. in such case, acceptance must be by the specified method in order to be valid
Death of incompetency
terminates offer because a dead person or incompetent person cannot leagally accept offer or enter into a contract; However, optioin offer can be accepted by estate
Destruction of specific subject matter
terminates offer. Example- a car which has been stolen and stripped after an offer was made cannot be sold under orginial offer
counteroffer
terminates the original offer, but a mere inquiry does not
without reserve
the auctioneer may only withdraw goods put up for for bid if no bid is made within a reasonable time
Intent
the courts apply the objective standard for intent. to have legal effect an offer must show intent to enter into a contract. terms do no have to be specific; thus, ads price tags and auctions are not an intentional offer but an invite to make an offer.
irrevocable offers of unilateral contracts-
the offer may not be recoked for a reasonble time once the offeree has begun preformance
Communication
the offeree must know about the offer in order to accept it, and it must be made or authorized by the offeror
Silence as acceptance
usually an offeree's silence will not constitute acceptance. Silience can constitute an acceptance where the parties have agreed to such or where the parties past pattern of behavior has indicated that silence would constitute as an acceptance
option contract
you got something from them to keep the offer