Offer

Question 1

Creation of a Contract

Answer 1

1) Mutual assent?
2) Consideration?
3) Defenses?

Question 2

Mutual Assent - Offer and Acceptance

Answer 2

An agreement on the same bargain at the same time, or a meeting of the minds. Measured objectively - each party is bound to the apparent intention he manifested to the other(s)

Question 3

Offer

Answer 3

A communication from the offeror that creates a reasonable expectation in the offerree that the offeror is willing to enter into a contract on the basis of the offered terms.

Question 4

Communication

Answer 4

a) Expression of promise or commitment?
b) Certainty & Definiteness of terms?
c) Communication to the Offeree?

Question 5

Language

Answer 5

Language shows intent. “I promise” vs “I will consider”

Question 6

Method of Communication

Answer 6

Broader the media (publications), more likely it is a solicitation of an offer. (reward offers are exception)

Question 7

Definite and Certain Terms (QTIPS)

Answer 7

Quantity, Time, Identity of parties, Price, Subject Matter.

Real Estate - identification of land and price
Employment - duration must be specified
Sale of Goods - Quantity must be certain or a seller’s output or a buyer’s requirement

Question 8

Revocation by Offeror

Answer 8

Direct revocation - clearly communicated by words/writing
Indirect revocation - conduct inconsistent with maintaining the offer.
*Offers made to public at large must be revoke in same medium it was made

Question 9

Non-Revocable Offers

Answer 9

1) Option Contract - offer + paid-for commitment to not revoke
2 )Reliance - Detrimental reliance on offer and offeror could reasonably foresee reliance
3) Unilateral - If performance is started, offer cannot be revoke. Preparation not enough. Must be performance or det reliance

Question 10

Firm Offer Rule

Answer 10

1) signed written promise to hold offer for period not exceeding 3 months
2) by a merchant
3) for the sale of goods

Question 11

Rejection by Offeree

Answer 11

Explicitly communicating rejection to offeror or Counter Offer

Question 12

Counter-Offer

Answer 12

Operates as both rejection and new offer

Question 13

Invitation to Counter

Answer 13

Offeror expressly invites counter-offer than a counter-offer does not reject original offer

Question 14

Inquiries

Answer 14

Offeree can ask questions or request different terms as long as inquiries don’t rise to the level of an offer

Question 15

Options Contract

Answer 15

Counter-offer made during option period does not terminate offer

Question 16

Expiration

Answer 16

If offer is terminated, is not accepted within stated deadline or within reasonable time after receipt

Question 17

Death of Offeror

Answer 17

If offeror or offeree dies, the offer is revoked.

*Option and Unilateral Contracts with performance are still valide even after offeror death

Question 18

Frustration of Purpose

Answer 18

Supervening illegality or destruction of subject matter can also terminate the offer