OFFER & ACCEPTANCE

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OFFER & ACCEPTANCE. Mr. Calkins Spring 2008. OFFER & ACCEPTANCE. CREATION OF OFFERS TERMINATION OF OFFERS ACCEPTANCES. OFFER & ACCEPTANCE “CREATION OF OFFERS”. CONTRACT— is an agreement between two or more parties that creates obligations. OFFER & ACCEPTANCE “CREATION OF OFFERS”. - PowerPoint PPT Presentation

Text of OFFER & ACCEPTANCE

  • OFFER & ACCEPTANCEMr. CalkinsSpring 2008

  • CREATION OF OFFERSTERMINATION OF OFFERSACCEPTANCESOFFER & ACCEPTANCE

  • CONTRACTis an agreement between two or more parties that creates obligations.

    OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT1) Offer and Acceptancethere must be an offer to contract. The person who makes the offer is the offeror the person who accepts the contract is the offeree.OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT2) Genuine Assentthe agreement must not be made on one party decieving the other.OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT3) LEGALITYthe parties agree to must be legal. An agreement to pay someone to commit a crime cannot be a legal contract.OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT4) CONSIDERATIONan agreement must involve both sides receiving something of legal value as a result of the transaction.OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT5) CAPACITYto have a completely enforceable agreement the parties involved must be able to contract for themselves. Rather than being forced to use parents or legal representation. If one of the parties is under the age of 18 the contract is voidable. OFFER & ACCEPTANCECREATION OF OFFERS

  • 6 MAJOR REQUIREMENTS TO ENFORCE A CONTRACT6) WRITINGsome agreements must be in writing to be fully enforceable in court. OFFER & ACCEPTANCECREATION OF OFFERS

  • CONTRACTUAL INTENT MUST BE PRESENTJESTSthe law is not concerned with what is actually in the mind of a person making an offer. It is more concerned with appearance of the action. If you think you are joking but a reasonable person would assume that you are offering a contract it would be so. On the other hand if a reasonable person would believe that you are joking it would be viewed as such.OFFER & ACCEPTANCECREATION OF OFFERS

  • CONTRACTUAL INTENT MUST BE PRESENTSTATEMENTS MADE IN ANGERa person yelling at someone to offer $100 for someone stealing their purse isnt considered a valid offer. Therefore if someone ran after the thief and expected payment there is not requirement to do so.OFFER & ACCEPTANCECREATION OF OFFERS

  • CONTRACTUAL INTENT MUST BE PRESENTPRELIMINARY NEGOTIATIONSinformation often is communicated to induce someone to begin bargaining. These are not seen as an intent to contract. These are beginning talks in a process that are non-binding until a formal offer has taken place.OFFER & ACCEPTANCECREATION OF OFFERS

  • CONTRACTUAL INTENT MUST BE PRESENTSOCIAL AGREEMENTS if a pair of friends agree to go to a movie it isnt deemed a contract. Neither friend thinks of this as a legal binding agreement. If the date is broken those involved may be offended but may not file a law suit for breach of contract.OFFER & ACCEPTANCECREATION OF OFFERS

  • ESSENTIAL TERMS MUST BE COMPLETE AND DEFINITIVE1) Identity of the specific lot2) Price agreed upon3) Full terms of payment involved.4) Date for delivery of possession.5) Date for delivery of the deed. OFFER & ACCEPTANCECREATION OF OFFERS

  • REQUIREMENTS OF ACCEPTANCECOME FROM THE PERSON OR PERSONS TO WHOM OFFER WAS MADE.MATCH THE TERMS OF OFFER.BE COMMUNICATED TO THE OFFEROR.OFFER & ACCEPTANCEACCEPTANCES

  • ONLY OFFEREES MAY ACCEPT an offer made from one person to another may NOT be accepted by another. In some cases an offer is made to a group in this case the offer may be accepted by another member of the group.OFFER & ACCEPTANCEACCEPTANCES

  • ACCEPTANCE MUST MATCH OFFER the mirror image rule requires that acceptance must exactly match the terms contained in the offer. 1) If a party is a consumer not a merchant then new or changed terms are merely proposal an not part of the contract.2) If both parties are merchants new or changed terms are not part of the contract of the original offer objects. Or in absence of objection terms are material.3) When parties are merchants new or changes terms of the contract if the original offeror is silent and terms are thus minor. OFFER & ACCEPTANCEACCEPTANCES

  • ACCEPTANCE MUST BE COMMUNICATED TO OFFEROR.When parties are merchants new or changes terms of the contract if the original offeror is silent and terms are thus minor. OFFER & ACCEPTANCEACCEPTANCES

  • TERMS THAT OFFERS CAN ENDREVOCATION BY THE OFFERORTIME STATED IN THE OFFERREASONABLE LENGTH OF TIMEREJECTION BY THE OFFEREECOUNTEROFFERDEATH OR INSANITY OF EITHERDESTRUCTION OF THE SUBJECT MATTEROFFER & ACCEPTANCETERMINATION OF OFFERS

  • REVOCATION BY THE OFFEROR:After an offer has been made the offeror can generally revoke it anytime before it is accepted by the offeree. This is true even if the offeror promised that the offer would remain open for a particular period. A revocation is not effective until communicated to the offeree.OFFER & ACCEPTANCETERMINATION OF OFFERS

  • TIME STATED IN THE OFFER:In making an offer the offeror may state how and when the offer must be accepted. Example: If Mr. Bigg applied for a loan for $50,000 on Oct. 1. And then GimmeCash Bank offered to lend on specified terms and specified that the acceptance must take place before October 15. Mr. Bigg didnt mail in an acceptance until October 17 which Gimme Cash Bank didnt receive until October 20 the offer had expired.OFFER & ACCEPTANCETERMINATION OF OFFERS

  • OFFER & ACCEPTANCETERMINATION OF OFFERSREASONABLE LENGTH OF TIMEWhen nothing is stated in the offer about how long it will remain open, it ends after a reasonable length of time. What a reasonable length of time depends on the circumstances. Example: If a Produce Wholesaler in New Jersey telephones a customer in Florida offering to sell a truckload of oranges if the offer isnt accepted the contract will terminate. The seller understands that there may be contact with many buyers so that they must respond quickly to assure their product.

  • OFFER & ACCEPTANCETERMINATION OF OFFERSREJECTION BY THE OFFEREEWhen the offeree clearly rejects the offer, the offer is terminated. Unless this offer is renewed by the offeree. Any rejection of the first offer nullifies the offerors obligation at that point.

  • COUNTEROFFERNormally an offeree accepting terms must accept the offer as it was exactly made. However if the offeree changes the terms of the offeror and submits it back to them this is called a counteroffer. In making a counteroffer basically (legally) offeree is saying in effect I refuse your offer but I will accept these exceptions to it that I have stated forth.OFFER & ACCEPTANCETERMINATION OF OFFERS

  • OFFER & ACCEPTANCETERMINATION OF OFFERSDEATH OR INSANITYContracts are agreements made and entered into by the parties subject to their control. If someone dies or insanity happens this eliminates control of it being fulfilled. Therefore civil law intervenes when either party can no longer fulfill their obligation and terminates their offers.

  • OFFER & ACCEPTANCETERMINATION OF OFFERSDESTRUCTION OF SUBJECT MATTERIn the event of the item involved in an offer the offer becomes terminated immediately. Example: Billy-bob agrees to purchase a 1968 Camaro from Jills City Slicker Cars for $3000. The evening prior to picking up the vehicle a storm blows through and a tree is uprooted and lands on the car totalling it. Neither party is held to the terms of the offer based on this.

  • HOW AN OFFER CAN BE KEPT OPENOPTIONSif the offeree gives the offeror something of value in return for a promise to keep the offer open, this agreement itself is a binding, legal agreement.FIRM OFFERS an offer which contains terms stating how long it is to stay open and for how much.OFFER & ACCEPTANCETERMINATION OF OFFERS

  • REQUIRMENT OF AN ACCEPTANCEONLY OFFEREES MAY ACCEPTTHE ACCEPTANCE MUST MATCH THE OFFERACCEPTANCE COMMUNICATED TO OFFEROR OFFER & ACCEPTANCEACCEPTANCE OF OFFERS

  • ONLY OFFEREES MAY ACCEPTAn offer made to another person may not be accepted by another. Sometimes however an offer which is made to a particular group such as an agency the offer may/may not be accepted by the group involved.OFFER & ACCEPTANCEACCEPTANCE OF OFFERS

  • ACCEPTANCE MUST MATCH OFFERThe mirror-image rule states that the acceptance must exactly match the terms contained in the offer. If an attempted acceptance is altered in any way it becomes a counteroffer.OFFER & ACCEPTANCEACCEPTANCE OF OFFERS

  • ACCEPTANCE MUST BE COMMUNICATED TO THE OFFERORSILENCE AS ACCEPTANCEBILATERAL ACCEPTANCEUNILATERAL ACCEPTANCEOFFER & ACCEPTANCEACCEPTANCE OF OFFERS

  • SILENCE AS ACCEPTANCEOne it not obligated to reply to offers made by others. An offerors attempt to word the offer so that silence would appear to be an acceptance will not work. No contract would result from such a case.OFFER & ACCEPTANCEACCEPTANCE OF OFFERS

  • OFFER & ACCEPTANCEACCEPTANCE OF OFFERSBILATERAL ACCEPTANCEMost offers are bilateral meaning the offer implies that it can be accepted by giving a promise instead of performing a contract for an act. These contracts require that the offeree accept by communicating the requested promise to the offeror.

  • OFFER & ACCEPTANCEACCEPTANCE OF OFFERSUNILATERAL ACCEPTANCEThe offeror in a unilateral promises something in return for the offerees performance and indicates that this performance is the way acceptance is to be made.