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Canada (510,626)
MGSC30H3 (54)
J.Rybak (11)
Lecture

Offer and Acceptance.docx

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Department
Management (MGS)
Course
MGSC30H3
Professor
J.Rybak
Semester
Summer

Description
Offer and Acceptance Introduction  Contracts are enforceable when the parties have established all of the elements that make the contract The Elements of a Valid Contract  The requirements are referred to as the elements of a valid contract 1. An intention to create a legal relationship 2. Offer 3. Acceptance 4. Consideration 5. Capacity to contract 6. Legality  Contracts must also be free from any vitiating elements, such as mistake, misrepresentation, or undue influence The Intention to Create a Legal Relationship  Consensus ad idem: agreement as to the subject or object of the contract o Parties must be of one mind and their promises must relation to that subject or object  For a valid contract, there must be intention on the part of the promisor to be bound by the promise made  Presuming that the party intended to be bound by the promise shifts the onus to prove otherwise  Advertisements in newspapers, magazines and other written media are not normally taken as enforceable promises that are binding to advertiser o While an advertiser is not normally bound by the claims set out in an advertisement, if a clear intention to be bound by them is expressed, then the courts will treat the promise as one made with an intention to create a legal relationship o Courts view advertisements, as a mere invitation to do business Offer and Acceptance The Nature of an Offer  Only a promise made with the intention of creating a legal relationship may be enforced  A tentative promise made subject to a condition is not binding on the offering party until the proposal is accepted  A valid acceptance must take place for the parties the be bound by the agreement Communication of an Offer  Must be communicated by offeror to the other party before acceptance may take place  Offer not valid until it is received by the offeree  Offeror is not bound by the offer until such time as it is accepted  No person can agree to an offer which he or she is unaware  Important for the offeror to know when the offeree becomes aware of the offer  If acceptance takes place before the offer is made, the offeror is not bound by the promise  Only the person to whom an offer is made may accept the offer o If an offer is made to public, this rule naturally does not apply Acceptance of an Offer  Acceptance: a statement or act given in response to and in accordance with an offer o the words or conduct must conform to certain established rules before the acceptance will be valid  acceptance of the offer must be communicated to the offeror in the manner requested or implied by the offeror in the offer  If acceptance is specified to be by oral means, the acceptance would be complete when it is communicated by the offeree either by telephone or when the offeree meets the offeror  The acceptance of the offer takes place when the letter of acceptance, properly addressed and the postage paid, is placed in the post-box or post office Electronic Offer and Acceptance  Electronic document is deemed to be s
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