1. HOW A CONTRACT BEGINS Chapter 4.2

2. Requirements of an Offer  Must be seriously intended  Must be definite and certain  Must be communicated to the offeree

3. Requirements of an Acceptance  Unconditional Acceptance  Mirror Image Rule-must not change the terms of the original offer-acceptance should mirror the offer  Counteroffer-up to original offeror(now offeree) to accept counteroffer  Contracts for sale of goods-exception to mirror image rule(clothing, furniture, motor vehicles, applicances)  UCC-Uniform Commercial Code Unified set of statutes that covers the law of sales as well as other areas of commercial law

4. Methods of Acceptance  Offeree uses the same method of communication that the offeror used-contract exists when acceptance is sent  Offeree uses a different method than the offeror- contract exists when acceptance is received(real estate and service contracts)  Sales of goods contracts-acceptance takes place when it is sent-communication must be reasonable  Offer specifies that it must be accepted by an action  Offeror cannot impose silence on the offeree as means of acceptance UNLESS the offeree has previously agreed or the offeree has allowed his/her silence used in the past

5. Termination of an Offer  Revocation-taking back the offer  Two rules Offer can be revoke anytime before accepted Revocation becomes effective when received by or communicated to the offeree  Rejection-refusal of an offer by offeree  Counteroffer-ends the first offer  Expiration of Time-offeror puts a time limit for acceptance- no time limit stated in offer-must be accepted within a reasonable time  Death or Insanity-becomes insane before offer is accepted- death ends an offer, but does not end a contract, except for personal services