A legally binding offer will include (3)
clearly stated terms
intention to do business
communication of that intention
clearly stated terms: A statement can NOT be too vague to compromise a valid offer; UNLESS (3)
the parties’ previous dealings & the nature of the relevant trade.
statutory implied terms (a store with no price)
Arbitration clauses (parties may purposly state terms vaguely because they might not know or prices change by the day like Gold, Fuel, logwood)
Intention to do business: An offer represents the parties’ ‘last word’ prior to ______.
A statement which does not indicate commitment to be bound by its terms will NOT be interpreted as a__________
Problems arise where a party, who believes that a binding offer has been made, communicates an ___________
acceptance
binding offer.
‘acceptance’.
2 types of statements (can be confused with offers BUT ARE NOT OFFERS)
Invitation to treat- inviting cuustomers to make an offer. (Ads, catalogs, menus, tender, auctions, display of goods)
Negotiation- Lengthy negotiations may lead up to the formation of a contract. Problems may occur where one party assumes that a statement represents the other party’s offer and claims to have accepted it. (Both parties state their offers & terms until both agree)
the offer must be communicated to the offeree
the offeree must know of the offer to be able to legally accept.
tenders
a competitive offer to provide goods or services.
binding for the job to the Gov. (company is d offeror & gov is the offeree)
termination of offers (5)
Death- The death of the offeror terminates the offer if its terms require personal performance. An offer may survive if it can be performed by personal representatives (company like nails, barber)
refusal- if an offer is rejected it ceases to exist.
counter-offer- kills the ORIGINAL offer but starts a new offer.
laspe of time- if a reasonable amount of time passes then the offer dies if not accepted. (time-limit)
revocation- “i take it back” Offerors are entitled to change their minds and withdraw offers at any time right up to the
moment of acceptance.
rules to revocation (3)
revoke only BEFORE acceptance
must notify the revocation (maybe be done by a 3rd party)
revoke using 3rd party is SUFFICIENT notice
option agreement
offeree gives money to the offeror to wait. The money is NOT a deposit & its non-refundable.
“buying time”
ordinary rules of revocation to UNILATERAL OFFERS
notice- A unilateral offer is often made to the world at large. If the offeror decides to
revoke such an offer, it would be impossible to notify everyone who saw it.
Incomplete acceptance- Acceptance of a unilateral offer always involves the performance of an act. If an offeree has begun but not completed the acceptance of a unilateral offer, it would be unjust to allow the offeror to revoke the offer.
