Offer and Acceptance - PowerPoint PPT Presentation

About This Presentation
Title:

Offer and Acceptance

Description:

Capacity - the ability to understand one's actions and the effects ... Minors, intoxicated persons, and insane persons lack capacity, at least to some degree. ... – PowerPoint PPT presentation

Number of Views:2509
Avg rating:3.0/5.0
Slides: 10
Provided by: corsic
Category:

less

Transcript and Presenter's Notes

Title: Offer and Acceptance


1
Chapter 10
  • Offer and Acceptance

2
What is a Contract?
  • Contract - an agreement that is enforceable by
    law
  • Offeror - the person who makes an offer
  • Offeree - person to whom the offer is made

3
Who may enter into contracts?
  • Capacity - the ability to understand ones
    actions and the effects of those actions
  • Legally competent - persons with the capacity to
    contract
  • Minors, intoxicated persons, and insane persons
    lack capacity, at least to some degree.

4
What are the requirements of an offer?
  • Offer - a proposal by an offeror to do or not to
    do some specified thing in the future
  • the offeror must intend to create a legal
    obligation
  • the terms must be definite and complete
  • the offer must be communicated to the offeree

5
How is an offer ended?
  • An offer ends at the time stated in the offer
  • An offer not stating how long it will remain open
    terminates after a reasonable length of time
  • An offer ends if it is rejected by the offeree
  • An offer ends if the offeree makes a counteroffer
  • An offer usually ends if it is revoked or
    modified by the offeror before the offeree has
    accepted
  • An offer is terminated by death or insanity of
    either the offeror of offeree

6
How can an offer be kept open?
  • Option - underlying contract to keep an offer
    open
  • Firm offer - a binding offer stating in writing
    how long it is to be held open

7
What is required for acceptance?
  • Acceptance - occurs when a party to whom an offer
    has been made agrees to the proposal or does what
    is proposed
  • Acceptance must be by the person(s) to whom the
    offer was made
  • Acceptance must be unconditional and must match
    the offer

8
More requirements for acceptance
  • Acceptance must be communicated to the offeror
  • Unilateral contract - only one of the parties
    makes a promise
  • bilateral contract - both parties make promises

9
What is the effect of acceptance?
  • Valid contract - one that is legally effective
    and enforceable in court
  • Void agreement - cannot be enforced in court by
    either party
  • Voidable contract - if a party chooses to
    withdraw from a transaction
  • Unenforceable contract - valid contracts time
    has expired
Write a Comment
User Comments (0)
About PowerShow.com