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Business Law Ch 6 Offer and Acceptance, Complete study guide
Terms in this set (58)
In contracts, occurs when a party to whom an offer has been made agrees to the proposal; in commercial paper, drawer's promise to pay the oblige of a draft when the instrument is due.
Offeree can accept offer by giving a promise to the offer instead of performing the contracted-for act
Agreement between two parties that creates an obligation.
Offeree's response to an offer which modifies it
Contractual proposal in writing by a merchant stating how long the offer is to stay open
Mirror image rule
Requires that the terms in the acceptance must exactly match the terms contained in the offer
Proposal by an Offeror to do something, provided the offeree does something in return
Party to whom an offer is made
Party who makes an offer to form a contract
Separate contract arising when the offeree gives the offeror something of value in return for a promise to leave an offer open
Withdrawing an offer before it is accepted
Offer promises something in return for the offeree performance and indicates that this performance is the way acceptance must be made
Explain two ways in which offers can be terminated.
1. Can be terminated if offeree dies
2. Also insanity of a person can terminate an offer
How could an offeree ensure that an offer will stay open for a set period of time?
If they set a firm offer the offer will stay open.
If a time for the offer to expire is not stated, it will expire in a reasonable time under the circumstances.
If an offeree clearly rejects the offer, the offer is termed
When an offeree changes the offeror's terms in important ways, the offeree makes a(n)
Which of the following does not describe an event that will terminate an offer?
death of the offeree
An offeree who rejects an offer can later accept it if the acceptance occurs within a reasonable time after the original offer
False (once terminated you can't accept the ORIGINAL offer)
If an offeree gives the offeror something of value to keep an offer open, the contract thereby created is called a(n)
If either the offeror or offeree is deemed insane, the law will
terminate any offers made
A firm offer is valid for no more than
If a beauty salon hair designer said to a customer, "This price on the cut and dry is good for 30 days," and then wrote it down on a piece of paper and signed it, this would be a _____________.
what elements are required to form a legally enforceable contact
Offer and Acceptance
What are the requirements of an offer
Contractual intent must be present in the offer
The offer must be communicated to the offeree
The essential terms of the offer must be complete and definite
A proper legal description of the real estate
Full terms for payment
Date for delivery of possession
Date for delivery of the deed
unilateral and bilateral (multilateral) contracts
- bilateral usually is the legal shorthand for two or more parties making promises that form the contract
- the offer is the basis of the bargin
- if not valid, there is no contract for courts to enforce
- as a consequence, the law examines would-be offers
- there are three tests that an offer must pass to legally be enforceable
1. contractual intent must be present
2. offer must be communicated to the offeree
3. essential terms of the offer must be complete and define
- law IS NOT concerned with what is actually in the mind of a person making the potential offer
- law IS concerned with the appearance of this action
- if you were joking, but someone thinks you are serious, you HAVE made an offer
- if you are serious, but someone thinks you are joking, you HAVE NOT made an offer
statements made in anger or terror
- yelling that you'll pay someone to stop a thief IS NOT a valid offer
- it DOES NOT have reasoned basis necessary for enforceable offers
- information often is communicated merely to induce someone to initiate bargaining
- such statements are not seen by the law as indicating an intent to contract
- invitations to negotiate ARE NOT offers
- offers would typically come from the party responding to the ad
- most businesses try to sell goods at their advertised prices, but it is not required by law
- statues prohibit false/misleading advertising
- advertisements may be offers
- the ad must be clearly worded in ways that address the problem of numerous people receiving the ad for a limited amount of product
- an ad may become an offer if it asks the offeree to perform an act as a way of accepting
- social arrangements typically do not create legal obligations
- all offers must identify the price, subject matter, and quantity directly or indirectly to be legally effective
- some offers require more information
- most states the essential terms for sale of real estate include
1. proper legal description of the real estate
3. full term for payment
4. date for delivery of possession
5. date for delivered of the deed
- each essential term must be identified
- term might be implied by law/common business practice
- contracts between individuals who regularly deal in the goods, does not have a specific price
- current market price is used
requirements of a legally enforceable contract
* offer and acceptance
* genuine assent
* proper form
Offer and Acceptance
must be an agreement composed of an offer and an acceptance upon which to base the contract. Terms of the offer must be definite and accepted.
the agreement must not be based on ones party deceiving another, an important mistake, or unfair pressure exerted to obtain the offer or acceptance.
what the parties agree to must be legal, an agreement to commit a crime or tort cannot be a legal enforceable contract
what the promise demands and generally must receive in order to make his or her promise legally enforceable against him or her is termed consideration
to have a completely enforceable agreement, the parties must have the legal ability to contract for themselves
some agreement must be placed in writing to be fully enforceable in court
What are the requirements of an effective acceptance?
Acceptance is effective when sent unless the offeror specified the acceptance would be effective when received, or unless one party specified how it should be sent.
What occurs when a party to whom an offer has been made agrees to the proposal?
If an offeror specifies in the offer that the acceptance must be made by fax, an e-mail acceptance will not be effective.
All forms of acceptance take effect only when received.
If the parties to a contract have mutual obligations to perform it, the contract it termed what?
When there is no specified or customary means for communicating acceptances, a faster means than the employed by the offeror to make the offer would be considered effective by the courts
1. come from the person or persons to whom the offer was made
2. match the terms in the offer
3. be communicated to the offer
may be made to the general public
Attempted acceptance of an offer for a contracts for a sale of goods is valid if the modified terms are treated as:
1. party receiving the acceptance is a consumer, not a merchant, the the new terms are proposals and not part of the contract unless agreed to by the original offeror
2. if both parties are merchants, the new terms aren't part of the contact if the original offeror objects or if the terms are material
3. if both parties are merchants, the new terms are part of the contract if the original offeror is silent and the terms are minor
An offeror's attempt to word the offer so that silence would appear to be an acceptance _________
will not work
Most offers can be accepted by
giving a promise instead of performing the contracted- for act
In some offers, the offeror requires that the offeree
indicate acceptance by performing an action specified in the offer
If the person performing the act does not know of the reward __________
that person is not legally entitled to it
The UCC provides that an acceptance of an offer to buy or sell goods may be made _____________
"in any manner and by any medium reasonable in the circumstances" unless otherwise clearly "indicated by the language or circumstances"
When the communication takes time, for example when sent through the surface mail, the question of _______________
when the communication is effective can become very important
The offeror may require the offeree to _________________
use a certain communication method to accept
Most courts say the acceptance is effective when ________
sent by the same means used for the offer, or by faster means.
Oral acceptances are effective at ___________
the moment the words are spoken directly to the offeror
Therefore the effect is similar to instantaneous oral communication, but in a ______________
more durable form that is easier to prove in court
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