6.2 Termination of Offers

Standards BCS-LEB-4: The student identifies rights and responsibilities of contract negotiations.

Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions Presentation Activity

Scholarship Horatio Alger Association Scholarship Juicy J Scholarship $20,000 October 25th Family Income less $55,000 Juicy J Scholarship Girls Only

Recap An Offer and Acceptance Genuine Assent Legality Consideration 6 Elements to a contract An Offer and Acceptance Genuine Assent Legality Consideration Capacity Writing*

Recap 2 parties in an offer Offeror (Makes the offer) Offeree ( Receives the offer)

Termination of Offers Recap 3 Elements to an Offer Intent must be present Must be Communicated Terms must be complete and definite Termination of Offers

Essential Questions Describe the various ways to end an offer Explain how an offeree can ensure and offer will remain open

Terminating Offers Offers are like love… ….they don’t last forever

7 ways to terminate an offer

7 ways to terminate an offer Revocation Time Stated in an Offer Reasonable Length of Time Rejection by Offeree Counteroffer Death/Insanity Destruction of Specific Subject Matter

Revocation by Offeror Revocation: the right to withdraw an offer before its accepted

Time Stated in the Offer Offeror may state how and when offer may be accepted EXAMPLE? ABC Bank $50,000 loan Accepance Criteria Writing No later than Oct 21 Tim mailed on Oct 20 Bank received Oct 22 Contract????

Reasonable Length of Time When nothing is said in the offer about length Depends on circumstances for reasonable determination CIRCUMSTANCES??? Vs.

Rejection by the Offeree Clear Rejection by Offeree If offeror does not renew offer Offer remains terminated Rejection of offer supercedes time limit EXCEPTION: Options

I refuse your offer; here is my proposal Counteroffer Offer must be accepted as is COUNTEROFFER: Any important changes to the offeror’s terms by the offeree I refuse your offer; here is my proposal

Death/Insanity Either the Offeror or Offeree

Destruction of Specific Matter If the property in the offer is destroyed then the offer is terminated

Assessment Edmodo Give an example of how to reject each offer. Example must be different than examples we discussed in class. Edmodo

Standards BCS-LEB-4: The student identifies rights and responsibilities of contract negotiations.

Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions Presentation Activity

Scholarship FRA Scholarship ($5000) Americanism Essay Contest (Grades 7-12) Theme: The Bill of Rights and Me Family Dollar Scholarship ($10,000) Hispanics http://www.familydollar.com/pages/coke.aspx 3 second prize $5000 scholarships 3.0/Deadline Dec 15th

Essential Questions Describe the various ways to end an offer Explain how an offeree can ensure and offer will remain open

7 ways to terminate an offer Revocation Time Stated in an Offer Reasonable Length of Time Rejection by Offeree Counteroffer Death/Insanity Destruction of Specific Subject Matter

Keeping an Offer Open 2 Ways Options Firm Offers

Options Offeree gives offeror something of value to keep the offer open Offer cannot be rescinded during the option period

Firm Offer Option for merchants Must be specifically outlined in the offer terms UCC makes terms binding for stated time No longer than 3 months

RED FLAG Death and/or Insanity don’t affect options and firm offers

Scenario 1 On May 15th, Melissa offered to sell her collection of baseball cards for $3000 at anytime before the first of next month to her friend and fellow collector, Ralph. While Ralph was trying to raise the money, Melissa had second thoughts. She called Ralph and said, “ I’ve change my mind, I’m not interested in selling the cards.” Ralph responded, “It’s too late, you said the offer would be open for the whole month. This is just the 20th, and I’ve got the money so I accept.”

Was Melissa’s offer terminated before Ralph’s attempted acceptance? The offer is terminated Which of the 7 termination rules applies? Revocation by offeror

Scenario 2 Adam a well-known author nonfiction author, sent a fiction book manuscript entitled The Endtimes Project to Hardcover, Inc., a publisher in New York City. Adam offered to let hardcover publish it if he received an advance of $50,000 and 15 percent of gross sales. Sorrento an editor at hardcover thought the manuscript would be a sure best seller but hardcover did not typically publish books in that subject area. Wanting approval from the editorial board at hardcover before excepting Adam offer Sorrento offered Adam 1,000 to keep his offer open solely to hardcover for 30 days. Adam agreed.

Question 2 Is Adam now legally bound to keep his offer to Hardcover open for the 30 days? With the $1000 Sorento bought an option to acquire Adam’s manuscript for publishing under the terms Adam offered.

ASSESSMENT ON QUIA