Offer and Acceptance Chapter 7
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Offer and Acceptance Chapter 7

7-1: Contract. An agreement that courts will enforce.. What do you think are some examples of contracts?. What do you think are some examples of agreements that would not be enforceable in court?. 6 Elements of a Contract.

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Offer and Acceptance Chapter 7




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Presentation on theme: "Offer and Acceptance Chapter 7"— Presentation transcript:

Slide1

Offer and Acceptance

Chapter 7

Slide2

7-1: Contract

An agreement that courts will enforce.

What do you think are some examples of contracts?

What do you think are some examples of agreements that would not be enforceable in court?

Slide3

6 Elements of a Contract

Offer and Acceptance

Genuine Assent

– no deceiving one another, no unfair pressure.

Legality

– Must be legal.

Consideration

– both sides receiving something of legal value.

Capacity

– must be capable themselves.

Writing

– Some must be in writing to be enforceable in court.

Slide4

Offer

Proposal by the OFFEROR to do something, providing the OFFEREE does something in return.

A painter measures the exterior of a home and promises to paint the house within 30 days for $3,000. This is the OFFER. If the home owners agree to the time frame and the $3,000, this is the ACCEPTANCE.

Slide5

Offerer

The painter.

Communicated a serious, definite proposal.

Slide6

Offeree

The home-owners

Persons to whom the offer is made

Slide7

Requirements of an Offer

The

offeror

must appear to intend to create a legal obligation

The terms must be definite and complete.

The offer must be communicated to the

offeree

.

Slide8

A. Expression of Intent to Create a Legal Obligation

Test of the Reasonable Person

Concerned with the appearance of the person making the offer.

Depends on how a “reasonable person” would take your offer…joking? Serious?

Facts and Circumstances

Words spoken in obvious jest, frenzied terror, or anger would not be offers if a reasonable listener would realize that no offer was intended.

Slide9

Expression of Intent Cntd

Preliminary Negotiations

“Would you take $800 for that computer?”

“Look Jeff, I’ll give you $800 today for that computer…are you interested?

Which one of the above is an offer?

Social Agreements

Your friend doesn’t show up at the movies at 8:00, like you had planned…can you take them to court for breach of contract?

Slide10

B. Offer must be Complete and Clear

Complete – not missing any essential info…Price, Subject Matter, Quantity.

Clear

Implied Terms – Implied by law or common business practice.

Advertisements – Ads in newspapers and magazines, on radio or television, or in direct mailings are generally not offers.

Instead they are “invitations to customers to make offers.”

Slide11

Why would this be?

A person who advertises something for sale has a limited stock and cannot be expected to sell to the many thousands who might be interested.

Black Friday Deals

Day after Christmas Sales

Slide12

What’s your Verdict?

Page 112

The “would-be-buyers” were the ones making an offer.

Slide13

Advertisements may occasionally be Offers

First – the ad must be clearly worded in way to address lots of possible purchasers and minimum products to purchase.

“Car will be sold only to the first person to accept the terms contained in the offer.”

“Subject to stock on hand.”

Slide14

Ads = Offer

Second – If it asks the

offeree

to perform an act as a way of accepting.

Lawn mower will be sold for $20 to “the first person to appear at the main door of a shopping mall on Saturday morning after 6am”

Slide15

C. Offer must be communicated to the

Offeree

A person who is not the intended

offeree

cannot accept the offer.

A person cannot accept an offer without knowing it has been made.

Slide16

7-2: How Offers End

Revocation by the

Offeror

Time Stated in the Offer

Reasonable Length of Time

Perishable product…short length of time

Rejection by the

Offeree

Counteroffer

Death or Insanity

Slide17

How Offers Can be Kept Open

Options

Separate contract arising when the

offeree

gives the

offeror

something of value in return for a promise to leave the offer open.

Firm Offers

An offer by a merchant for the sale or purchase of goods stating in a signed writing how long it stays open is a Firm offer.

Slide18

7-3: ACCEPTANCE

Occurs when a party to whom an offer has been made agrees to the proposal.

Slide19

Requirements of Acceptance

Be made by the person or persons to whom the offer was made.

Match the terms in the offer

Be communicated to the

Offeror

Slide20

B. Acceptance must match the offer

Mirror Image Rule

Requires that the terms in the acceptance must exactly match the terms in the offer.

Tax preparation & Realty

Goods

Slide21

C. Acceptance Must be Communicated to the

Offeror

Silence as Acceptance

Proactiv

– Until you CANCEL your shipment, you are accepting the offer.

Unilateral Acceptance

Offerees

performance is the way acceptance is made.

Bilateral Acceptance

Requires that the

offeree

accept by communicating the requested promise to the

offeror

.