Law for Business and Personal Use © Thomson South-Western CHAPTER 6 Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide Creation of Offers GOALS List the elements required to form a contract Describe the requirements of an offer

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 3 FOCUS What distinguishes a contract from other agreements?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 4 WHAT MUST BE IN A CONTRACT? Offer and acceptance Genuine assent Legality Consideration Capacity Writing

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 5 What elements are required to form a legally enforceable contract?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 6 REQUIREMENTS OF AN OFFER Contractual intent must be present Jests Statements made in anger or terror Preliminary negotiations Social agreements Offer must be communicated to the offeree Essential terms must be complete and definite

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 7 What are the requirements of an offer?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide Termination of Offers GOALS Describe the various ways to end offers Explain how an offeree can ensure an offer will remain open

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 9 FOCUS Can offers to contracts be terminated at different times depending on the subject matter of the offer?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 10 HOW CAN OFFERS BE ENDED? Revocation by the offeror Time stated in the offer Reasonable length of time Rejection by the offeree Counteroffer Death or insanity of either the offeror or offeree Destruction of the specific subject matter

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 11 Explain two ways in which offers can be terminated.

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 12 HOW CAN AN OFFER BE KEPT OPEN? Options Firm offers

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 13 How could an offeree ensure that an offer will stay open for a set period of time?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide Acceptances GOALS Discuss the requirements of an effective acceptance Determine at what point in time an acceptance is effective

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 15 FOCUS Scenario John makes an offer to Paul. Paul is not interested, but Paul’s friend, who was standing nearby, hears the offer and says she accepts. Question Has a contract been formed?

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 16 WHAT IS REQUIRED OF AN ACCEPTANCE? Only offerees may accept The acceptance must match the offer Acceptance must be communicated to the offeror Silence, bilateral, unilateral acceptance Modes of contractual communication When acceptances are effective

Law for Business and Personal Use © Thomson South-Western Chapter 6 Slide 17 What are the requirements of an effective acceptance?