Bài giảng Business Law (13th edition) - Chapter 10: The Agreement: Offer

ContractsIntroduction to ContractsThe Agreement: OfferThe Agreement: AcceptanceConsiderationReality of Consent3McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.ContractsCapacity to ContractIllegalityWritingRights of Third PartiesPerformance & Remedies3McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.The Agreement: OfferPAETRHC10“There is nothing more likely to start disagreement among people or countries than an agreement.” E.B. WhiteLearning ObjectivesRequirements for an offerIntentDefiniteness of TermsSpecial ProblemsTermination of an offer10 - *An offer is a promise conditional on an act, return promise, or forbearance (refraining from doing something) Parties to a contract must have intent to enter binding agreement, terms must be definite, and the offer must be communicated to the offereeRequirements for an Offer10 - *Courts use the objective theory of contracts to determine intent:Would a reasonable person judge the offeror’s words and acts in the context of the circumstances to signify intent?Definiteness requires that the offer cannot be vague about major points Price, quantity, delivery, and time for payment term left open may be filled by inserting presumptions in Code’s rulesDetails10 - *Advertisements for the sale of goods at specified prices generally are not considered offers, but are invitations to offer or negotiateAdvertisements offering rewards for lost property, information, or capture of criminals are treated as offers for unilateral contractsSellers at auctions and advertisements for bids are invitations to offerInvitations to Offer10 - *Termination by Revocation An offer may be terminated by revocation if revoked & communicated to offeree before the offer is accepted, with the exception of:Option contract in which offeror agrees not to revoke offer for a stated time in exchange for some valuable considerationOffers for unilateral contracts (e.g., rewards)Promissory estoppel circumstancesFirm offers for sale of goods 10 - *Test Your KnowledgeTrue=A, False = BCourts apply the subjective theory of contracts when determining whether intent to contract existedThe UCC often creates contractual liability where no contract would result under common lawSales puffery may be deemed to be a valid offer10 - *Test Your KnowledgeMultiple ChoiceAn offer requires: (a) intent and communication to offeree(b) motive(c) definiteness of terms(d) all of the above(e) all of the above except (b)Which is not an invitation to negotiate: (a) Advertisement of sale(b) Offer of Reward(c) Auction10 - *Thought QuestionsWhen you go to a department store and purchase an item, what have you done according to contract law? Is the law sensible about these contracts?10 - *