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8/9/2019 Buslaw07-Offer and Acceptance
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1. Identify the three requirements of a valid
offer and judge whether those
requirements are present in any particular
offer.2. Differentiate between a public offer and an
invitation to trade.
OFFER AND ACCEPTANCE
Chapter Outcomes:
Chapter 7
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3. Explain acceptance of an offer in the case of
a unilateral contract and a bilateral contract.
4. Outline the proper procedure for accepting an
offer that has been made face-to-face, by
telephone, or over long distance.
5. Discuss the mirror image rule and explain its
status under the Uniform Commercial Code.
OFFER AND ACCEPTANCEChapter 7
Chapter Outcomes (continued):
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6. Relate the various means by which an offer
can be revoked.
7. Explain what is meant by a firm offer.
8. Defend the proposition that an option is both
a contract and an offer, and distinguish an
option from a simple offer.
OFFER AND ACCEPTANCEChapter 7
Chapter Outcomes (continued):
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Requirements of an Offer
Serious Intent
Clarity and Definiteness of Terms
Communication to the Offeree
77--11
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LawLINKS
Chapter 7Chapter 7
The Cornell University Legal InformationInstitute maintains a website containing
the Uniform Commercial Code at
http://www.law.cornell.edu/ucc/ucc.table.h
tml
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77--11
1. Serious intent is determined by the
offerees words, but not by his orher actions.
Topic Quiz
FALSE
Answer the following true/false questions:
Words and actions.
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77--11
2. A cost-plus contract will always include
a final price.
Topic Quiz
FALSE
Answer the following true/false questions:
Does not include.
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77--11
3. Neither a public offer nor an invitation
to trade can be considered an offer.
Topic Quiz
FALSE
Answer the following true/false questions:
Both are legal offers.
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A Question of Ethics
Suppose, after conducting a survey which
revealed that most people did not know abouttheir rights under the Postal Reorganization
Act, a company began a mailing campaign
that sent unordered merchandise to certain
targeted groups. Would such a move beethical? Explain.
77--11
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LawLINKS
Chapter 7Chapter 7
As a federal law, the Postal Reorganization
Act is a part of the United States Code. TheUnited States Code can be researched by
subject at
http://www.law.cornell.edu/uscode/updsubj.
html
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77--22
1. Unilateral contracts do not
usually require oral or written
communication of anacceptance.
Topic Quiz
TRUE
Answer the following true/false questions:
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77--22
2. The mirror image rule applies only to
sale of goods contracts.
Topic Quiz
FALSE
Answer the following true/false questions:
All offers.
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77--22
3. Silence on the part of the offeree can
never be considered as an acceptance.
Topic Quiz
FALSE
Answer the following true/false questions:
It can if both parties agree.
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Revocation of an Offer
Revocation by Communication
Automatic RevocationRevocation by Passing of Time
Revocation by Death or Insanity
Revocation by Destruction
Revocation by Subsequent
Illegality
77--33
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77--33
1. A revocation is the calling back
of an offer by the offeror.
Topic Quiz
TRUE
Answer the following true/false questions:
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77--33
2. When no time limit is set an offer
remains open indefinitely.
Topic Quiz
FALSE
Answer the following true/false questions:
It revokes automatically after the passing
of reasonable length of time!
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77--33
3. The destruction of the subject
matter of an offer automatically
revokes the offer.
Topic Quiz
TRUE
Answer the following true/false questions:
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Option Contracts andFirm Offers
An option contract is an agreementthat binds an offeror to a promise to
hold open an offer for a predetermined
or reasonable length of time.
77--44
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77--44
1. An option contract is an
agreement that binds an
offeror to a promise to hold an
offer open for a predetermined
or a reasonable length of time.
Topic Quiz
TRUE
Answer the following true/false questions:
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77--44
2. An option contract does not remove the
possibility of revocation due to theinsanity of the offerer.
Topic Quiz
FALSE
Answer the following true/false questions:
Yes, it does.
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77--44
3. Firm offers have been eliminated under
provisions of the Uniform CommercialCode.
Topic Quiz
FALSE
Answer the following true/false questions:
Developed as a special rule.
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77--11 An agreement is reached when an offer made
by one party is accepted by another party.
The second major part of mutual assent is the
acceptance of the offer .
77--22
SUMMARY
77--33 A rejection comes about when an offeree
expresses or implies refusal to accept an offer.
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SUMMARY (continued)
77--44 Some types of offers cannot be revoked by the
offeror.
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Chapter 7Chapter 7Key Terms
acceptance cost-plus contract
counteroffer firm offer
current market price contract mirror image ruleinvitation to trade offer
offeree offeror
option contract output contract
public offer rejectionrequirements contract revocation
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Investigating on the Internet
Chapter 7Chapter 7
Access the website sponsored by
QuickForm Contracts at
http://www.quickforms.com
and write a report on how to use theQuickForm website.
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Endof Presentation