Buslaw07-Offer and Acceptance

8/9/2019 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


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


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



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77--22

2. The mirror image rule applies only to

sale of goods contracts.

Topic Quiz

FALSE


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


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



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77--33

2. When no time limit is set an offer

remains open indefinitely.

Topic Quiz

FALSE


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



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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



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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


Yes, it does.


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77--44

3. Firm offers have been eliminated under

provisions of the Uniform CommercialCode.

Topic Quiz

FALSE


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

Documents

Buslaw07-Offer and Acceptance