Mutual Assent - Offer

Question 1

When is a communication an offer?

Answer 1

Creates a reasonable expectation in offeree

Subjective intent doesn’t matter.

Question 2

Advertisements and offers

Answer 2

Generally not offers. Just invitations to deal.

Question 3

When is an advertisement an offer?

Answer 3

Rareley. Must contain:
1) Promise
2) Certain and definte terms
3) The offeree is cleary identified

may be considered an offer if given in response to a price inquiry.

Question 4

Definite and certain terms generally

Answer 4

An offer must be definite and certain in its terms to be enforced.

Usually must includes:
1) Offerees name
2)offer’s subject matter
3) price

Question 5

Definite and certain terms for land sale offers

Answer 5

include:
1) Price
2) Description of land

Question 6

Definite and certain terms for sale of goods

Answer 6

Generally Must include:
1) Quantity term

BUT “requirement” and “output” contracts (based on need or output of goods) can be okay. Watch out for good faith, or unreasonable increases in demand/supply.

Question 7

Definite and certain terms for employment and other services

Answer 7

Employment: If duration not specified, at will

Other services: nature of the work must be included.

Question 8

Methods of offer termination

Answer 8

1) Lapse of time
2) Revokation
3) Rejection
4) Death

Question 9

Lapse of time termination

Answer 9

Failure to accept within time specified, or if no deadline specified, within a reasonable period

Question 10

Rejection termination Types

Answer 10

1) Express Rejection
2) COunteroffer
3) Conditional Acceptance
4) Revocation

Question 11

Counteroffers vs mere inquiries

Answer 11

Counter offers are rejections. Mere inquiries/bargaining is not.

“Will you take less?”

Question 12

Revocation and when it’s effective

Answer 12

Retraction of offer. Can be direct or indirect.

Effective when recieved.

Question 13

Indirect Revocation requirements

Answer 13

Oferree recieves:
1) correct information
2) From a reliable source
3) of acts of the offeror that would indicate to a reasonable person that the offeror no longer wishes to make the offer

Question 14

Limits on power to revoke

Answer 14

1) OPtion contract
2) Merchant’s Firm Offer (ucc)
3) Forseeable reliance
4) Beginning Performance in Response to True Unilateral K offer

Question 15

What is an option contract

Answer 15

Offeree gives consideration for offeror to not revoke offer for period of time

Question 16

Merchants Firm Offer RUle

Answer 16

UCC
1) Merchant promises
2) IN signed writing
3) to keep offer open for time stated, or reasonable time, up to 3 months.

No consideration needed.

Question 17

What if merchant promises not revoke, but does not state a time period

Answer 17

Court determines reasonable time period, not past 3 months

Question 18

Forseeable reliance

Limitation on Power to revoke

Answer 18

If

1) Reliance based on offer is forseeable
2) Offerree does rely

then offer will be irrevocable as an option K for a reaonable length of time.

Question 19

Performance of True Unilateral Contract Offer and Revocation

Answer 19

OFferor must give the offerree a reasonable time to complete the performance.

Preperations to perform are not sufficient.

Question 20

Death and offers and contracts.

Answer 20

Ends offer.

But not K or irrevokable offer

Question 21

Does the mailbox rule apply to option contracts?

Answer 21

No. Acceptance (of what was being held by option k) effective only on receipet.