1 / 20

CHAPTER 6 Offer and Acceptance

CHAPTER 6 Offer and Acceptance. 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances. 6-1 Creation of Offers. GOALS List the elements required to form a contract Describe the requirements of an offer. FOCUS. What distinguishes a contract from other agreements?.

Download Presentation

CHAPTER 6 Offer and Acceptance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. CHAPTER 6Offer and Acceptance 6-1 Creation of Offers 6-2 Termination of Offers 6-3 Acceptances

  2. 6-1 Creation of Offers GOALS • List the elements required to form a contract • Describe the requirements of an offer Chapter 6

  3. FOCUS • What distinguishes a contract from other agreements? Chapter 6

  4. WHAT MUST BE IN A CONTRACT? • Offer and acceptance • Genuine assent • Legality • Consideration • Capacity • Writing Chapter 6

  5. What elements are required to form a legally enforceable contract? Chapter 6

  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 Chapter 6

  7. What are the requirements of an offer? Chapter 6

  8. 6-2 Termination of Offers GOALS • Describe the various ways to end offers • Explain how an offeree can ensure an offer will remain open Chapter 6

  9. FOCUS • Can offers to contracts be terminated at different times depending on the subject matter of the offer? Chapter 6

  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 Chapter 6

  11. Explain two ways in which offers can be terminated. Chapter 6

  12. HOW CAN AN OFFER BE KEPT OPEN? • Options—offeree give the offeror something of value in return for a promise to keep the offer open, this agreement is itself a binding contract. The offer may not be withdrawn during the period of the option. • Firm offers—offer made in writing Chapter 6

  13. How could an offeree ensure that an offer will stay open for a set period of time? Chapter 6

  14. 6-3 Acceptances GOALS • Discuss the requirements of an effective acceptance • Determine at what point in time an acceptance is effective Chapter 6

  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? Chapter 6

  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 Chapter 6

  17. WHAT IS REQUIRED OF AN ACCEPTANCE? • Silence—offeree is not obligated to reply to offers made. Offers worded so that silence would appear to be an acceptance will not work. Chapter 6

  18. WHAT IS REQUIRED OF AN ACCEPTANCE? • Bilateral—requires that the offeree accept by communicating the requested promise to the offeror. Ex: Seller promises a load of topsoil for $65. Homeowner verbally accepts Chapter 6

  19. WHAT IS REQUIRED OF AN ACCEPTANCE? • Unilateral—offeree indicates acceptance by performing his/her obligations under the contract. Ex: Publicly posted reward for a lost item You find the item and return it Chapter 6

  20. What are the requirements of an effective acceptance? Chapter 6

More Related