Understanding Contracts: An In-depth Look at Offers, Intention, and Definiteness, Slides of Commercial Law

Download Understanding Contracts: An In-depth Look at Offers, Intention, and Definiteness and more Slides Commercial Law in PDF only on Docsity! THE AGREEMENT: OFFER Docsity.com CONTRACT LAW • Introduction to Contracts • The Agreement: Offer • The Agreement: Acceptance • Consideration • Reality of Consent • Capacity to Contract • Illegality • Writing • Rights of Third Parties • Performance & Remedies Docsity.com Learning Objectives • Requirements for an offer • Special Problems • Termination of an offer 10 - 5 Docsity.com Parties to a contract must have … (1) intent to enter binding agreement, (2) terms must be definite, and the (3) offer must be communicated to the offeree OFFER REQUIREMENTS 10 - 6 Docsity.com Courts use the objective theory of contracts: Would a reasonable person judge the offeror’s words and acts in the context of the circumstances to signify intent? Lucy v. Zehmer NOT: obviously joking, haggling, equivocating INTENT 10 - 7 Docsity.com • Advertisements offering rewards for lost property, information, or capture of criminals are treated as offers for unilateral contracts • Sellers at auctions and advertisements for bids are generally treated as making an invitation to offer, so those who bid are making an offer that the seller may accept or reject Rewards, Auctions, and Bids Docsity.com TERMINATION OF THE OFFER ACTION OF THE PARTIES • REVOCATION = any time before acceptance, except: 1. Option Contract 2. Unilateral Contract and offeree begins performance 3. Promissory Estoppel 4. Firm Offer by merchant for the sale of goods in a signed writing (UCC) • REJECTION Smith v. Murrell • COUNTEROFFER OPERATION OF LAW • LAPSE OF TIME • DEATH OR INSANITY OF EITHER PARTY • DESTRUCTION OF THE SUBJECT MATTER • INTERVENING ILLEGALITY Docsity.com