Presentation on theme: "Chapter 7. An agreement that courts will enforce. What do you think are some examples of contracts? What do you think are some examples of agreements."— Presentation transcript:
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?
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.
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.
The painter. Communicated a serious, definite proposal.
The home-owners Persons to whom the offer is made
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.
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.
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?
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.”
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
Page 112 The “would-be-buyers” were the ones making an offer.
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.”
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”
A person who is not the intended offeree cannot accept the offer. A person cannot accept an offer without knowing it has been made.
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
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.
Occurs when a party to whom an offer has been made agrees to the proposal.
Be made by the person or persons to whom the offer was made. Match the terms in the offer Be communicated to the Offeror
Mirror Image Rule Requires that the terms in the acceptance must exactly match the terms in the offer. Tax preparation & Realty Goods
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.