ACCT 324 Lecture 8: 9/5 Chapter 14
Document Summary
Manifestation of offeror"s intent to be bound. Most people would believe they are serious. Preliminary negotiations and advertisements do not constitute offer. Definite and certain terms (including subject matter, price, quantity, quality, and parties) Communication of offer to offeree (or offeree"s agent) Seller merely expresses intent to receive offers. Auctioneer (representing the seller) may withdraw item from auction at any time before hammer falls . Before hammer falls (signaling acceptance of offer), bidder/offeror may revoke bid. Auction without reserve- not putting a minimum price. Revocation- can revoke at any time before the offer is accepted. Counteroffer- rejects offer and then makes a new offer. Subsequent illegality of subject matter of offer. Lapse of time- can set a deadline for response. Acceptance- representation of offeree"s intent to be bound by terms of offer. Terms of acceptance must be identical to terms of offer ( mirror-image rule) Effective when communicated by offeree to offeror.
