Offer Flashcards
Is mental assent to a contract enough for formation?
It can be, but it is not a requirement. If the conduct of the parties’ meet the requirements for a contract then it becomes binding whether the party mentally assented or not.
RS 24: An Offer
The manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.
Objective theory of Contracts
The Reasonable Person Standard
“Would a reasonable third party observer with no investment in the outcome believe that a contract had been created?”
Intent to be bound?
A person must have an external intent to be bound. This external intent is judged on the RPS
Elements of an Offer:
1) manifestation of willingness
2) to enter into a bargain
3) to justify another person in understanding
4) that his assent to a bargain
5) is invited
6) and will conclude it.
Owen v. Tunison
Invitations vs offers
There must be an offer to have an acceptance. An invitation to open negotiations is not an offer.
Quotations of prices as offers?
An offer is not created when giving a quote of a price. This is simply opening the negotiations.
Are advertisements offers?
Exception to the rule?
As a general rule, advertisements are not offers, unless they fulfill all terms of an offer. An advertisement is an invitation to make an offer, which the store can then accept.
When the ad leaves nothing for negotiation and is clear, definite, and explicit.
Recession of an offer test:
1) mistake was material to the contract
2) not the result of neglect of a legal duty
3) mistake would be unconscionable to the party (blacks define: affront to the sense of duty)
4) must restore status quo
5) party of mistake must have given prompt notice to the other party.
6) must offer to restore any value which the mistake had cost under the contract.
