C6. Offers

Question 1

What is an offer?

Answer 1

A specific proposal that leaves nothing for the other party, but the power of acceptance to enter into an agreement

Question 2

A valid offer have what two requirements?

Answer 2

1) It must be clear; and

2) it must be definite

Question 3

Does an advertisements constitute an offer?

Answer 3

If it is not accepted by the seller then no.

Exception: when the ad is clear and definite and leaves nothing open for negotiation, constitutes an offer, acceptance which completes the contract

Question 4

An offer is supposed to create the power of __________. When there is nothing left for the other party to do, but to accept, there has been an ________.

Answer 4

Acceptance; offer

Question 5

When can an offer be revoked at anytime?

Answer 5

When it is unsupported by consideration

Question 6

When does the offerees power of acceptance is terminated?

Answer 6

When the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquire reliable information to that effect

Question 7

When does an offer terminates?

Answer 7

1) Offeror dies: power of acceptance is terminated when either parties dies or becomes incapacitated. An option contract can go past death
2) Time limit: offeror gives a stipulated time, and if no time is fixed then within the reasonable time

Question 8

What is the face to face (conversation rule)?

Answer 8

The power of acceptance terminates after the conversation unless there is evidence of a contrary intent

Question 9

When can offer be revoked by the offeror?

Answer 9

Anytime before it is accepted

1) excludes option contracts
2) can be done indirectly
3) must tell the offeree that you are revoking

Question 10

When can an inference cause an offer to be rejected?

Answer 10

When the offeror is justified in inferring from the words and conduct of the offeree that the offeree intends not to accept the offer or to accept the offer or to take it under further advisement