1. Chapter 6 Offer and Acceptance
9/13/2018
Chapter 6 Offer and Acceptance
6-1 Creation of Offers
6-2 Termination of Offers
6-3 Acceptances
Chapter 6
LAW

2. 6-1 Creation of Offers GOALS
List the elements required to form a contract
Describe the requirements of an offer
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3. WHAT MUST BE IN A CONTRACT?
Offer and acceptance
Genuine assent
Legality
Consideration
Capacity
Writing
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4. What elements are required to form a legally enforceable contract?
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5. 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
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6. What are the requirements of an offer?
Chapter 6

7. 6-2 Termination of Offers
GOALS
Describe the various ways to end offers
Explain how an offeree can ensure an offer will remain open
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8. 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
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9. Explain two ways in which offers can be terminated.
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10. HOW CAN AN OFFER BE KEPT OPEN?
Options
Firm offers
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11. How could an offeree insure that an offer will stay open for a set period of time?
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12. 6-3 Acceptances
GOALS
Discuss the requirements of an effective acceptance
Determine at what point in time an acceptance is effective
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13. 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
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14. What are the requirements of an effective acceptance?
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15. PREVENT LEGAL DIFFICULTIES
When you seek to enter into a contract . . .
When negotiating, assume the worst and include terms in the contract addressing potential problems.
For important contracts, put offers and acceptances in writing. If either an offer or an acceptance is made orally, promptly confirm it in writing.
Obtain and keep a copy of every important document you sign.
Express your intentions in offers and acceptances with clear, complete, and understandable language.
Continued on the next slide
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16. PREVENT LEGAL DIFFICULTIES
Remember that the offeror may specify how and when the offer must be accepted. Otherwise the offeree may use the same means used by the offeror, a faster means, or other reasonable means.
When appropriate, buy an option, if one is available, to keep the offer open for as long as you need.
Remember that for an offeror to withdraw or revoke an offer, the offeree must receive notice. For speed, use the telephone, , or fax machine to withdraw or revoke an offer.
Chapter 6