1. Agreement Offer and Acceptance Chapter 2

2. Offer  Offer: A promise or commitment to do or refrain from doing some specified thing in the future. Offer must: 1. Indicate a present and serious intent to be bound. 2. Be reasonably certain and definite and contain the material terms of the agreement. 3. Be communicated by the offeror to the offeree.

3. Offer  Intention: Objective intent  Expression of opinion is not an offer.  Preliminary negotiations  Advertisements Auctions  Material Terms Terms which will allow a court to determine the obligations of each party and determine a remedy in the event of a breach.

4. Offer  Communication 1. Offer must be communicated by offeror or offeror’s authorized agent. 2. Offeree must be aware of offer when he/she accepts the offer.

5. Termination of Offer  By action of the parties : Revocation  Option contracts  Detrimental Reliance Rejection Counteroffer

6. Termination  By Operation of Law: Lapse of time Destruction of subject matter Death of incompetence of either party Supervening illegality

7. ACCEPTANCE  Mirror Image Rule  Acceptance must be the mirror image of the offer. (exactly the same as the offer).  Any different or additional terms will be a counteroffer which will terminate the offer resulting in no contract

8. Acceptance  Acceptance is effective when sent “Mailbox Rule”, also known as the “Dispatch Rule” or the “Deposited acceptance Rule.”  Rule does not apply if: Authorized means of communication is not used Dispatch is defective (i.e. insufficient postage) Offer requires receipt Prior rejection sent