Offer and Acceptance Chapter 7 PowerPoint Presentation
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. ID: 753793Embed code:
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Presentations text content in Offer and Acceptance Chapter 7
Offer and Acceptance
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
– no deceiving one another, no unfair pressure.
– Must be legal.
– both sides receiving something of legal value.
– must be capable themselves.
– Some must be in writing to be enforceable in court.Slide4
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
Communicated a serious, definite proposal.Slide6
Persons to whom the offer is madeSlide7
Requirements of an Offer
must appear to intend to create a legal obligation
The terms must be definite and complete.
The offer must be communicated to the
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
“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?
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.
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 SalesSlide12
What’s your Verdict?
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
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
A person who is not the intended
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
Time Stated in the Offer
Reasonable Length of Time
Perishable product…short length of time
Rejection by the
Death or InsanitySlide17
How Offers Can be Kept Open
Separate contract arising when the
something of value in return for a promise to leave the offer open.
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
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
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
C. Acceptance Must be Communicated to the
Silence as Acceptance
– Until you CANCEL your shipment, you are accepting the offer.
performance is the way acceptance is made.
Requires that the
accept by communicating the requested promise to the