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Chapter 10: Mutual Assent - Offers (offer- definite undertaking or…
Chapter 10: Mutual Assent - Offers
offer- definite undertaking or proposal made by one person to another indicating willingness to enter into contract
essentials of an offer
communication - the offer must be communicated to the offeree (can't be accidental must be authorized communication from the offeror)
intent - manifest intent to enter into contract. determined objectively from the words or conduct of the parties
definiteness - offer's terms must be clear enough to provide a court with the basis for giving an appropriate remedy
duration of offers - ways in which an offer can be terminated all effective when they are received
counteroffer - if made, the original offer terminates and offeree becomes offeror
death or incompetency - terminates
rejection - unwilling to accept MUST be communicated
destruction of subject matter - car is crashed, tomatoes rot
revocation - offeror may revoke an offer anytime prior to acceptance with notice to the offeree
option contract - a separate contract which the offer is bound to hold an offer open for a period of time
Ex. College deposit on may 1st holds your spot until tuition is due
Firm offer under the code - UCC provides the merchant is bound to keep an offer to buy or sell goods open for a stated period of time or 3 months
statutory irrevocability - some offers r made irrevocable understaute like to the government
irrevocable under unliateral contracts - if the offeree has begun performance offer may be irrevocable if the offeror was notified of start of performance
subsequent illegality - performance of the offer is ade illegal prior to acceptance
lapse of time - offer will specify the expiration and if not, reasonable amount of time which is decided depending on the object in contract
acceptance of an offer - essential for formation of contract
communication of acceptance
general rule - acceptance must be communicated to the offeror
silemce as acceptance - not considered acceptance unless clearly stated in offer terms that it is a form of acceptance (ex. speak now or forever hold your peace)
effective moment - effective upon dispatch
stipulated provisions in the offer - if the offer specifies ways to communicate acceptance it must be followed or it is considered not acceptance
authorized means - if not specified how acceptance must be given, the offeree should respond the way the offeror presented the offer - any reasonable means of communication ex. not telegram lol
acceptance following a prior rejection - the first communication the offeror receives is the effective one
defective acceptances - does not create a contract but rather a new offer
variant acceptances