1. 6.2 Termination of Offers

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

3. Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions
Presentation Activity

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

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

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

7. 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

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

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

10. 7 ways to terminate an offer

11. 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

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

13. 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????

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

15. 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

16. 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

17. Death/Insanity
Either the Offeror or Offeree

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

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

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

21. Agenda Bell Ringer: Scholarship Screenleap Recap Essential Questions
Presentation Activity

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

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

24. 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

25. Keeping an Offer Open
2 Ways
Options
Firm Offers

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Offer cannot be rescinded during the option period

27. 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

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

29. 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.”

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

31. 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.

32. 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.

33. ASSESSMENT
ON QUIA