Offer and Acceptance Offer and Acceptance Both sides

Offer and Acceptance

�Offer and Acceptance- Both sides agree on mutual terms �Genuine Assent- Entering under your own free will (Not being forced) �Consideration- both sides gain something �Capacity- Understanding your actions �Legality- legal agreement �Writing- some contracts must be written to be considered valid

�Agreed on “mutual” terms �Only person offer was made to (Offeree) may accept �If a group, offeree is the person WHO accepts �Terms of the offer must be clear, detailed and complete

� Agreement is “serious” and legal � The terms of the agreements are clear, definite and complete � Communicated to offeree OFFER � Only the offeree can accept � Terms agreed to by offeree match the offer’s terms (Mirror image rule) � Communicated back to offeror (Acceptance) ACCEPTANCE

�Agreements “Courts” will enforce �Social Agreements are not legally enforceable contracts (Taking someone on a date) �Contracts create legal links between individuals, businesses and anyone involved in a legal agreement �All serious agreements are “not” considered contracts “unless” all 6 parts of contract are satisfied

�Since you can never really know what is in the mind of a person, you need a test to determine if you can agree what someone “thought” another person was thinking �This is a legal test to determine what someone meant when they entered a contract

� These are things going on when an offer was made to determine if the person who made the offer was in fact “serious” � If a person looks mad and the circumstances of their offer was made when they were mad, the offer will not be determined as serious. � For example, if a person grabs a $2000 watch and throws it on the ground, then tells a friend “This thing never works, I’d give it to you for free” they are not serious.

�These are things 2 people say to each other to determine if the other person is serious about selling an item and if they can get it for the price they want. �Ex) “I see you want to sell your home. Would you take $200, 000 for it? ” The person responds “No, that is well below what I am asking”. Response “What would you take then? ”

�All important items needed to make the contract terms complete �Names, dates, times, money, description of items �If any key item is missing, the contract is considered too vague or incomplete to be a valid agreement

�“Usually” NOT considered offers, as they would need to make sure they are clear about the number of items for sale and make the customer do something to accept �Ads are considered “invitations” to an offer, as the consumer would need to come in to accept and can still negotiate the price.

�“Only” allowed to be done by the person who the offer is made it (Offeree) �Cannot have a friend or relative say “She will accept, I’ll do it for her” �No person other than the one the offer was made to may accept unless its made to a group

�MUST accept the final offers terms exactly as they were offered (Mirror Image rule) �Must be made within the time frame allowed (If time is agreed) �Only offeree can accept �Acceptance must be communicated back in some way

�Revocation- the offeror takes back offer �Time stated- If time ends, so does offer �Reasonable time ends- If what would be a reasonable time elapses, offer ends �Rejection by Offeree- once the Offeree rejects the offer, they cannot change their mind at a later date and accept �Counteroffer- Any “Change in terms” ends the original offer �Death or Insanity- Either party

Common law �Oversees non- business contracts �Options (Collateral) must be given to keep offer open UCC Law �Oversees business contracts (Retailers) �Firm Offers (Signed written agreements) �Good for 3 months

�“Only” used with common law agreements (Non-Business related) �Based on collateral (Money or property used to keep offer open to buy time to decide) �Part of agreement

�“Only” used with UCC Law based agreements (Retailers or business) �NO collateral is needed �Usually in form of rain check or small written contract �Protected for 3 months or more

�Means the acceptance must match the offer “exactly” as its offered �Any change in the offer’s terms is a counteroffer and therefore ends the original offer

�If the offeree must perform in some way to accept an offer �Ex) If I tell an employee “If you decide to work overtime this weekend, I’ll pay you double-time even though I only need to pay you time and a half”

�Most offers are bilateral �A promise for a promise �Ex) Going to the store and paying for goods at the cash register. I get the goods and the store gets the money

OFFERS �Take effect when received �Can be made in person, mail, etc. . ACCEPTANCES �Take effect when Sent �If mailed, acceptance is based on mail stamp or email through time and date

�Offeror may require way acceptance must be made (For example, in writing through the mail) �Offeror may tell offeree acceptance does not take effect until it is received

An offeror may NOT word a contract offer to trick a person into agreeing by saying nothing �Illegal �Silent acceptance only work when you have a relationship with person or business �Ex) Stocking Pepsi on store shelves �

�Things that are understood without being spoken or agreed to �Its understood that you will pay for goods before leaving a store �Clear offers means the terms are explained in a way both parties understand �I am selling a 2009 GE refrigerator