1. Chapter 7

2.  An agreement that courts will enforce.  What do you think are some examples of contracts?  What do you think are some examples of agreements that would not be enforceable in court?

3.  Offer and Acceptance  Genuine Assent – no deceiving one another, no unfair pressure.  Legality – Must be legal.  Consideration – both sides receiving something of legal value.  Capacity – must be capable themselves.  Writing – Some must be in writing to be enforceable in court.

4.  Proposal by the OFFEROR to do something, providing the OFFEREE does something in return.  A painter measures the exterior of a home and promises to paint the house within 30 days for $3,000. This is the OFFER. If the home owners agree to the time frame and the $3,000, this is the ACCEPTANCE.

5.  The painter.  Communicated a serious, definite proposal.

6.  The home-owners  Persons to whom the offer is made

7.  The offeror must appear to intend to create a legal obligation  The terms must be definite and complete.  The offer must be communicated to the offeree.

8.  Test of the Reasonable Person  Concerned with the appearance of the person making the offer.  Depends on how a “reasonable person” would take your offer…joking? Serious?  Facts and Circumstances  Words spoken in obvious jest, frenzied terror, or anger would not be offers if a reasonable listener would realize that no offer was intended.

9.  Preliminary Negotiations  “Would you take $800 for that computer?”  “Look Jeff, I’ll give you $800 today for that computer…are you interested?  Which one of the above is an offer?  Social Agreements  Your friend doesn’t show up at the movies at 8:00, like you had planned…can you take them to court for breach of contract?

10.  Complete – not missing any essential info…Price, Subject Matter, Quantity.  Clear  Implied Terms – Implied by law or common business practice.  Advertisements – Ads in newspapers and magazines, on radio or television, or in direct mailings are generally not offers.  Instead they are “invitations to customers to make offers.”

11.  A person who advertises something for sale has a limited stock and cannot be expected to sell to the many thousands who might be interested.  Black Friday Deals  Day after Christmas Sales

12.  Page 112  The “would-be-buyers” were the ones making an offer.

13.  First – the ad must be clearly worded in way to address lots of possible purchasers and minimum products to purchase.  “Car will be sold only to the first person to accept the terms contained in the offer.”  “Subject to stock on hand.”

14.  Second – If it asks the offeree to perform an act as a way of accepting.  Lawn mower will be sold for $20 to “the first person to appear at the main door of a shopping mall on Saturday morning after 6am”

15.  A person who is not the intended offeree cannot accept the offer.  A person cannot accept an offer without knowing it has been made.

16.  Revocation by the Offeror  Time Stated in the Offer  Reasonable Length of Time  Perishable product…short length of time  Rejection by the Offeree  Counteroffer  Death or Insanity

17.  Options  Separate contract arising when the offeree gives the offeror something of value in return for a promise to leave the offer open.  Firm Offers  An offer by a merchant for the sale or purchase of goods stating in a signed writing how long it stays open is a Firm offer.

18.  Occurs when a party to whom an offer has been made agrees to the proposal.

19.  Be made by the person or persons to whom the offer was made.  Match the terms in the offer  Be communicated to the Offeror

20.  Mirror Image Rule  Requires that the terms in the acceptance must exactly match the terms in the offer.  Tax preparation & Realty  Goods

21.  Silence as Acceptance  Proactiv – Until you CANCEL your shipment, you are accepting the offer.  Unilateral Acceptance  Offerees performance is the way acceptance is made.  Bilateral Acceptance  Requires that the offeree accept by communicating the requested promise to the offeror.