1. Offer and Acceptance Chapter 6 – Contract Law

2. Contract – an agreement between two or more parties that creates obligation

3. Six Requirements 1.Offer and Acceptance Offeror – person who makes the offer Offeree – person to whom the offer is made must accept offer without change

4. 2. Genuine Assent The agreement must not be based on one party deceiving another or on the use of unfair pressure exerted The agreement must not be based on one party deceiving another or on the use of unfair pressure exerted

5. 3. Legality 4. Consideration Agreement must involve both sides receiving something of value Agreement must involve both sides receiving something of value

6. 5. Capacity Parties must be able to contract for themselves rather than being forced to use parents or legal representatives Parties must be able to contract for themselves rather than being forced to use parents or legal representatives 6. Writing **

7. Offer – a proposal by an offeror to do something, provided the offeree does something in return What is an Offer?

8. Requirements of an offer 1.Contractual intent must be present X Jests (jokes) X Anger or Terror X Preliminary Negotiations X Social Agreements

9. Requirements of an offer 2. Offer must be communicated to offeree A person who is not the intended offeree cannot accept the offer!

10. Requirements of an offer 3. Essential terms of the offer must be complete and definite Identify… Identify… - Property - Property - Price - Terms for payment - Dates

11. Termination of Offers 1.Revocation – to withdraw an offer before it is accepted 2.Time Limit 3.Reasonable Length of Time

12. 4. Rejection by Offeree 5. Counteroffer – the offeree changes the offeror’s terms (bargaining) 6. Death or Insanity

13. 7. Destruction of the specific subject matter 8. Options – giving something of value to keep an offer open 9. Firm Offers – a written offer containing terms stating how long an option stays open * applies to merchants * applies to merchants

14. Acceptances An acceptance must… 1.Come from the offeree 2.Match the terms in the offer (mirror image rule) 3.Be communicated to the offeror

15. Mirror Image Rule Requires that the acceptance exactly match the terms contained in the offer

16. Types of Acceptances 1.Silence – contract is formed by no action/communication Ex  AOL Ex  AOL Netflix Netflix

17. 2. Bilateral – requires that the offeree accept by communicating the requested promise 3. Unilateral – offeree’s acceptance by performing their obligation