1 Offer Whethere is an offer An offer

� 1) Offer �Whethere is an offer �An offer is a promise that bargains for a return � 2) Acceptance �Whether the offer was accepted �The offeree may accept the offer in any reasonable way � 3) Consideration �What each promise bargains for and receives in exchange

�A promise is a commitment to do or not do something �Need INTENT to contract �Intent is based on language and circumstance �Counteroffer rejects the offer

�Offer can be accepted by a promise or performance �Promise: contract comes into existence when acceptance is communicated �Performance: the start of performance creates a contract and the offeror is bound to the offer Preparation is not performance �Option: If offeror doesn’t indicate the form of acceptance he/she wants, the offeree may accept by any reasonable means

�Issue: what is the issue? �Rule: what is the rule? �Analysis: how does the rule apply to the facts? �Conclusion: what is your conclusion?

� What each promise bargains for and receives in exchange � Problems: � 1. Gift Promise – a gift does not bargain for anything in return or bargains for very little in return � 2. Unconscionability – “shocks the conscious” at the time of the sale �Inequality of bargaining power – one person is better at bargaining than the other �Unfair and oppressive terms – the contract is so unfair that it shocks the conscious