The Offer

Question 1

What must the offeror do to create a valid offer?

Answer 1

To form a valid offer, the offeror must:
1. Manifest an OBJECTIVE WILLINGNESS to enter into an agreement; AND

2. Create a power of acceptance in the offeree (i.e., the offeree can simply say, “i accept” an know that he has concluded the deal)

Question 2

What is the objective test?

Answer 2

The offer is governed by an objective test, which means that outward appearances of words and action are determinative– not subjective hidden intentions

Side note: (If a person makes an offer as a practical joke with his fingers crossed behind his back but his outward words and actions demonstrate willingness to enter the agreement, it is a valid offer. The offeror’s subjective intent is irrelevant).

Question 3

What is the specific offeree rule?

Answer 3

Generally, an offer must be directed to a specific offeree.

Question 4

What are the two exceptions to the specific offeree rule?

Answer 4

There is a limited exception for contest offers and reward offers that promise something to anyone who accomplishes a certain task. (cash reward for lost dog)

Question 5

Generally, are advertisements offers?

Answer 5

An advertisement is usually considered to be an invitation to deal rather than an offer, because advertisements usually fail to confer power of acceptance to the other side.

Question 6

When are advertisements considered offers?

Answer 6

Advertisements that are very specific and leave nothing open to negotiation may constitute offers.