1. Mr. Stasa – Willoughby-Eastlake City Schools ©

2. Revoking an Offer  Once an offer has been made, the offeror can revoke (cancel) it before it has been accepted.  The right to withdraw an offer before accepted is revocation.  Revocation is not effective until communicated to the offeree.

3. What do you think?  Melissa offered to sell her baseball cards to Raoul for $1,000. Raoul asked for a week to think it over, and Melissa agreed. Before Raoul accepted, Melissa said, I’ve changed my mind and am not selling my cards anymore.” Raoul responded, “Too late! You promised me the cards and I am now accepting your original offer with money that I now have.”  Is this offer effectively terminated, or does Melissa owe Raoul the money?

4. Time Stated in the Offer  The offeror may state how and when the offer must be accepted.

5. What do you think?  At lunch, Cleo offered to drive Tapanga home after school today if Tapanga was willing to split the cost of gas. Cleo told Tapanga to text her by 7 th period if she was interested. Once 7 th period was over and Cleo never did get a text from Tapanga. Does Cleo owe Tapanga a ride home after school?

6. Rejection by Offeree  When an offeree rejects the offer, the offer is officially terminated and cannot be accepted in the future even if a time limit has not expired.

7. What do you think?  Dekempsy offers to sell Dakota a Dell laptop for $500. Dakota replied, “Sorry. $500 is too much.” A day later, Dakota called Dekempsy and said “I changed my mind, I will buy your laptop for $500.” Dekempsy replied, “I’ve raised the price to $600. Take it or leave it.” Dakota replied, “You promised $500, you can’t raise the price. Hand it over!”  Does Dekempsy owe Dakota the laptop for the original offer of $500?

8. Death or Insanity  If an offeror presents the offeree with an offer and the offeree accepts but later dies or becomes insane, the offer is terminated.

9. Options  If the offeree gives the offeror something of value to keep the offer open for an extended amount of time, this agreement becomes a contract in itself.  An option contract is when the offeree provides the offeror an item of value to keep the offer open.  The offeror cannot revoke (cancel) the offer during an option contract.

10. What do you think?  The Robinsons had placed their house for sale for $150,000. The Jacksons offered the Robinsons $1,000 to keep their offer open for 30 days. A week later a buyer offered the Robinsons $155,000 for the house and the Robinsons accepted. The Jacksons found out the house had been sold and decided to sue the Robinsons for breach of contract.  Are the Robinsons in the wrong?

11. Time for bookwork!  Dust off the red Law books in the back of the room and complete questions 12-15 on page 105.