6 1 1 1 Law for Business 15

6. 2 Chapter 6 Objectives u Discuss the requirements for a valid contract. u Explain the difference between an offer and an invitation to make an offer. u Summarize the rules affecting the duration of an offer. u Define u State a counteroffer. the way to accept an offer made by mail.

6. 3 Requirements of a Valid Offer must be definite Offer must be seriously intended Offer must be communicated to the offeree

6. 4 Duration of the Offer u The offeror may revoke an offer any time prior to its acceptance. u An option cannot be revoked at will. u. A revocation of an offer must be communicated to the offeree prior to the acceptance.

6. 5 Duration of the Offer is terminated by: u Lapse of time specified u Death or insanity of offeror u Rejection of the offer by the offeree u The performance of the contract becomes illegal

6. 6 The Acceptance u. Acceptance is the assent to an offer which results in a contract. u. A counteroffer rejects the original offer, thereby terminating the offer. u. An offeree may make inquiry without rejecting the offer.

6. 7 Manner of Acceptance u. Usually the manner of acceptance is irrelevant. u. An offer may stipulate that acceptance be written and received. u. Persons can avoid problems by including the manner of acceptance in the contract.

6. 8 1. 8 The End! Don’t forget to check out the Cornell University Law School Web site.