1. Offer and Acceptance

2.  Offer and Acceptance- Both sides agree on mutual terms  Genuine Assent- Entering under your own free will (Not being forced)  Consideration- both sides gain something  Capacity- Understanding your actions  Legality- legal agreement  Writing- some contracts must be written to be considered valid

3.  Agreed on “mutual” terms  Only person offer was made to (Offeree) may accept  If a group, offeree is the person WHO accepts  Terms of the offer must be clear, detailed and complete

4. OFFERACCEPTANCE  Agreement is “serious” and legal  The terms of the agreements are clear, definite and complete  Communicated to offeree  Only the offeree can accept  Terms agreed to by offeree match the offer’s terms (Mirror image rule)  Communicated back to offeror (Acceptance)

5.  Agreements “Courts” will enforce  Social Agreements are not legally enforceable contracts (Taking someone on a date)  Contracts create legal links between individuals, businesses and anyone involved in a legal agreement  All serious agreements are “not” considered contracts “unless” all 6 parts of contract are satisfied

6.  Since you can never really know what is in the mind of a person, you need a test to determine if you can agree what someone “thought” another person was thinking  This is a legal test to determine what someone meant when they entered a contract

7.  These are the things going on when an offer was made to determine if the person who made the offer was in fact “serious”  If a person looks mad and the circumstances of their offer was made when they were mad, the offer will not be determined as serious.  For example, if a person grabs a $2000 watch and throws it on the ground, then tells a friend “This thing never works, I’d give it to you for free” they are not serious.

8.  These are the things 2 people say to each other to determine if the other person is serious about selling an item and if they can get it for the price they want.  Ex) “I see you want to sell your home. Would you take $200,000 for it?” The person responds “No, that is well below what I am asking”. Response “What would you take then?”

9.  All important items needed to make the contract terms complete  Names, dates, times, money, description of items  If any key item is missing, the contract is considered too vague or incomplete to be a valid agreement

10.  “Usually” NOT considered offers, as they would need to make sure they are clear about the number of items for sale and make the customer do something to accept  Ads are considered “invitations” to an offer, as the consumer would need to come in to accept and can still negotiate the price.

11.  “Only” allowed to be done by the person who the offer is made it (Offeree)  Cannot have a friend or relative say “She will accept, I’ll do it for her”  No person other than the one the offer was made to may accept unless its made to a group

12.  MUST accept the final offers terms exactly as they were offered (Mirror Image rule)  Must be made within the time frame allowed (If time is agreed)  Only offeree can accept  Acceptance must be communicated back in some way

13.  Revocation- the offeror takes back offer  Time stated- If time ends, so does offer  Reasonable time ends- If what would be a reasonable time elapses, offer ends  Rejection by Offeree- once the Offeree rejects the offer, they cannot change their mind at a later date and accept  Counteroffer- Any “Change in terms” ends the original offer  Death or Insanity- Either party

14. Common law  Oversees non- business contracts  Options (Collateral) must be given to keep offer open UCC Law  Oversees business contracts (Retailers)  Firm Offers (Signed written agreements)  Good for 3 months

15.  “Only” used with common law agreements (Non-Business related)  Based on collateral (Money or property used to keep offer open to buy time to decide)  Part of agreement

16.  “Only” used with UCC Law based agreements (Retailers or business)  NO collateral is needed  Usually in form of rain check or small written contract  Protected for 3 months or more

17.  Means the acceptance must match the offer “exactly” as its offered  Any change in the offer’s terms is a counteroffer and therefore ends the original offer

18.  If the offeree must perform in some way to accept an offer  Ex) If I tell an employee “If you decide to work overtime this weekend, I’ll pay you double- time even though I only need to pay you time and a half”

19.  Most offers are bilateral  A promise for a promise  Ex) Going to the store and paying for goods at the cash register. I get the goods and the store gets the money

20. OFFERS  Take effect when received  Can be made in person, mail, email, etc.. ACCEPTANCES  Take effect when Sent  If mailed, acceptance is based on mail stamp or email through time and date

21.  Offeror may require way acceptance must be made (For example, in writing through the mail)  Offeror may tell offeree acceptance does not take effect until it is received

22.  An offeror may NOT word a contract offer to trick a person into agreeing by saying nothing  Illegal  Silent acceptance only work when you have a relationship with person or business  Ex) Stocking Pepsi on store shelves

23.  Things that are understood without being spoken or agreed to  Its understood that you will pay for goods before leaving a store  Clear offers means the terms are explained in a way both parties understand  I am selling a 2009 GE refrigerator