Buslaw07-Offer and Acceptance

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    1. Identify the three requirements of a valid

    offer and judge whether those

    requirements are present in any particular

    offer.2. Differentiate between a public offer and an

    invitation to trade.

    OFFER AND ACCEPTANCE

    Chapter Outcomes:

    Chapter 7

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    3. Explain acceptance of an offer in the case of

    a unilateral contract and a bilateral contract.

    4. Outline the proper procedure for accepting an

    offer that has been made face-to-face, by

    telephone, or over long distance.

    5. Discuss the mirror image rule and explain its

    status under the Uniform Commercial Code.

    OFFER AND ACCEPTANCEChapter 7

    Chapter Outcomes (continued):

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    6. Relate the various means by which an offer

    can be revoked.

    7. Explain what is meant by a firm offer.

    8. Defend the proposition that an option is both

    a contract and an offer, and distinguish an

    option from a simple offer.

    OFFER AND ACCEPTANCEChapter 7

    Chapter Outcomes (continued):

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    Requirements of an Offer

    Serious Intent

    Clarity and Definiteness of Terms

    Communication to the Offeree

    77--11

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    LawLINKS

    Chapter 7Chapter 7

    The Cornell University Legal InformationInstitute maintains a website containing

    the Uniform Commercial Code at

    http://www.law.cornell.edu/ucc/ucc.table.h

    tml

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    77--11

    1. Serious intent is determined by the

    offerees words, but not by his orher actions.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    Words and actions.

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    77--11

    2. A cost-plus contract will always include

    a final price.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    Does not include.

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    77--11

    3. Neither a public offer nor an invitation

    to trade can be considered an offer.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    Both are legal offers.

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    A Question of Ethics

    Suppose, after conducting a survey which

    revealed that most people did not know abouttheir rights under the Postal Reorganization

    Act, a company began a mailing campaign

    that sent unordered merchandise to certain

    targeted groups. Would such a move beethical? Explain.

    77--11

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    LawLINKS

    Chapter 7Chapter 7

    As a federal law, the Postal Reorganization

    Act is a part of the United States Code. TheUnited States Code can be researched by

    subject at

    http://www.law.cornell.edu/uscode/updsubj.

    html

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    77--22

    1. Unilateral contracts do not

    usually require oral or written

    communication of anacceptance.

    Topic Quiz

    TRUE

    Answer the following true/false questions:

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    77--22

    2. The mirror image rule applies only to

    sale of goods contracts.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    All offers.

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    77--22

    3. Silence on the part of the offeree can

    never be considered as an acceptance.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    It can if both parties agree.

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    Revocation of an Offer

    Revocation by Communication

    Automatic RevocationRevocation by Passing of Time

    Revocation by Death or Insanity

    Revocation by Destruction

    Revocation by Subsequent

    Illegality

    77--33

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    77--33

    1. A revocation is the calling back

    of an offer by the offeror.

    Topic Quiz

    TRUE

    Answer the following true/false questions:

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    77--33

    2. When no time limit is set an offer

    remains open indefinitely.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    It revokes automatically after the passing

    of reasonable length of time!

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    77--33

    3. The destruction of the subject

    matter of an offer automatically

    revokes the offer.

    Topic Quiz

    TRUE

    Answer the following true/false questions:

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    Option Contracts andFirm Offers

    An option contract is an agreementthat binds an offeror to a promise to

    hold open an offer for a predetermined

    or reasonable length of time.

    77--44

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    77--44

    1. An option contract is an

    agreement that binds an

    offeror to a promise to hold an

    offer open for a predetermined

    or a reasonable length of time.

    Topic Quiz

    TRUE

    Answer the following true/false questions:

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    77--44

    2. An option contract does not remove the

    possibility of revocation due to theinsanity of the offerer.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    Yes, it does.

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    77--44

    3. Firm offers have been eliminated under

    provisions of the Uniform CommercialCode.

    Topic Quiz

    FALSE

    Answer the following true/false questions:

    Developed as a special rule.

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    77--11 An agreement is reached when an offer made

    by one party is accepted by another party.

    The second major part of mutual assent is the

    acceptance of the offer .

    77--22

    SUMMARY

    77--33 A rejection comes about when an offeree

    expresses or implies refusal to accept an offer.

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    SUMMARY (continued)

    77--44 Some types of offers cannot be revoked by the

    offeror.

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    Chapter 7Chapter 7Key Terms

    acceptance cost-plus contract

    counteroffer firm offer

    current market price contract mirror image ruleinvitation to trade offer

    offeree offeror

    option contract output contract

    public offer rejectionrequirements contract revocation

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    Investigating on the Internet

    Chapter 7Chapter 7

    Access the website sponsored by

    QuickForm Contracts at

    http://www.quickforms.com

    and write a report on how to use theQuickForm website.

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    Endof Presentation