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Offer and Acceptance

Offer and Acceptance. Section 6-1. What is a contract?. A contract is an agreement between 2 or more parties that creates a legal obligation. 6 Requirements to Contracts. Offer and Acceptance Must be a genuine offer and the offer must be accepted without changing the offer

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Offer and Acceptance

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  1. Offer and Acceptance Section 6-1

  2. What is a contract? • A contract is an agreement between 2 or more parties that creates a legal obligation

  3. 6 Requirements to Contracts • Offer and Acceptance • Must be a genuine offer and the offer must be accepted without changing the offer • Person giving the offer is the offeror; person receiving the offer is the offeree. • Genuine Assent • The offer cannot be based on someone tricking someone else or putting unfair pressure on them to accept the offer • Legality • What the 2 people agree to must be legal • Consideration • Both people in the contract must receive something of value • Capacity • Must be 18 to have the capacity to contract • Writing • Some, but not all, agreements must be in writing to be enforced

  4. What is an offer? • An offer is a proposal by an offeror to something, provided the offeree does something in return.

  5. Requirements of an Offer • Contractual intent must be present in the offer. • The offer must be communicated to the offeree. • The essential terms of the offer must be complete and definite.

  6. Requirements of an Offer:#1 Contractual Intent Must be Present • If you are joking but someone thinks you are making an offer, then the law will hold you to the offer. • If you make a statement out of anger or terror, then there is no legal offer. • Ads in the newspaper are often invitations to negotiate, not offers. • Social agreements, or arrangements between friends to do something, are not offers.

  7. Requirements of an Offer:#2 Offer Must be Communicated to 3rd Offeree • A person who is not the intended offeree CANNOT accept the offer. In other words, if it wasn’t meant for you, you can’t accept it. • An public offer for a reward cannot be accepted by someone who did not know about the reward.

  8. Requirements of an Offer:#3 Essential Terms Must be Complete and Definite • Complete: • Identity of the item • Price • Full terms of payment • Date for delivery of possession • Date for delivery of the deed • Definite: • Everything must be specific and clear • Cannot say “My car”, must say “My 2007 Jeep Cherokee”

  9. Review • What are the 6 requirements to contracts? • What are the 3 requirements of an offer? • What is the difference between the offeror and the offeree?

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