1. Chapter 6
Offer and Acceptance

2. Elements of a Contract Offer and Acceptance (Agreement) Genuine Assent
Legality
Consideration
Something of Value
Capacity
Writing (Form)

3. Agreement
Offer – A promise to do (or not do) something provided the offeree does (or does not do) something in return.
Acceptance – Act or promise in response to an offer
Offer + Acceptance = Agreement

4. The Offer Offeror – Makes the offer Offeree – Receives the offer
Legal Focus pg 192
Statements made in anger lack intent
Just Joking, excitement
Reasonable person

5. The Offer Requirements of the offer:
Contractual intent must be present in the offer
Must be communicated to the offeree
Terms must be reasonably definite

6. The Offer - Intent Legal Foci Pg 193 Nonoffers Jests
Statements made in anger or terror
Expressions of Opinion
Statements of intention
Preliminary Negotiations
Advertisements, Catalogs, etc
Social Agreements

7. The Offer - Intent An agreement to agree Auctioneer
Law in action from Chapter 7
Auctioneer
The audience actually makes the offer
Hammer falls – Contract formed

8. The Offer – Definite Terms
Terms – promises, conditions, and descriptions in a contract.
Important Terms (pg 112)
Subject Matter
Parties
Price
Time for Performance

9. The Offer – Definite Terms
Legal Focus Top of Pg 197
mechanic
Law in Action Pg 196
furs
Legal Focus Middle of Pg 197
copiers

10. The Offer - Communication
Legal Focus Pg 198
Must be communicated to the offeree

11. Termination of the Offer
Termination by the Parties
Termination by Law

12. Termination by the Parties
Revocation
Must be made same way offer was
Rejection
Counteroffer

13. Termination by Law Time Stated Death or Insanity of the parties
Reasonable length
Death or Insanity of the parties
Destruction of the Subject Matter
Illegality

14. Keeping Offers Open WYV – pg 114 Options Firm Offers Merchants
In writing
Binding offer for time stated < 3 months

15. Requirements of Acceptance
Comes from offeree
Sometimes the offeree is the general public
Matches terms of the offer
Mirror image rule
Counteroffers are not acceptances
Be communicated to the offeror

16. Mirror image rule Most states only apply to major changes
UCC exceptions
Pg 119

17. Communication of Acceptance
Silence
Tricky, tricky
Exception: prior practice, Old Legal Focus
Bilateral
Promise for a Promise
Words or conduct
Unilateral
Promise for an act

18. Modes of Communication
In person or other effective means
Phone, text, mail, messenger, , fax, etc.
Exception: stipulated in offer

19. Modes of Communication
All forms of contractual communication are effective once received EXCEPT
Acceptance
Effective once sent
Same mode as offer or faster
Mailbox rule
Unless otherwise stipulated in the offer