LAW 122 Study Guide - Milkshake, Cheeseburger, Reasonable Person

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Offer
Invitation to treat
Invitation to treat: Is an indication of willingness to receive an offer.
IS NOT AN OFFER
Invitation for others to make offer
Distinction between an offer and an invitation depends on the objective test.
How a reasonable person would interpret a particular statement
Would a reasonable person believe that the person making the statement was prepared to enter
into a contact as soon as an acceptance was received?
Or would it be more reasonable to believe that the person making the statement was simply
prepared to receive and consider offers
Example:
1. if it said ad classified as invitation to treat each response would be an offer you could reject or
accept.
2. If your ad is classified as an offer, you might be held liable to fulfill 10 contracts, even though you
have only two cars to sell.
EXPECTION TO THE RULE
EXAMPLE
1. An advertisement me be considered an offer IF a reasonable peron would read it that way. If I
say indicate that a limited number of items are avaible while supplies last. “ First come first
serve”
Communication of an offer
Statement is not an offer unless it is communicated and received as an offer
Example:
1. Written: if you buy a tv from a department store on credit, you will probably be asked to
complete a lengthy application that contains countless terns and conditions. That is your offer to
the store
2. Verbally: if you go to the restaurant and say : a cheeseburger and a milkshake please.: you are
offering to enter into a contract for the purchase of the meal
3. Inferred conduct alone: If you go to a barber and you sit on the chair and get a trim without
saying ANYTHING, you have offered and the barber has accepted a contract to cut your hair.
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The Life of an offer
Offer doesn’t last for ever. If it is accepted it gives way to a contract, and if it is not accepted , it may
cease to exist in these way:
Revocation
Lapse time
Death or insanity
Rejection
Counter offer
Revocation
Revocation: occurs if the offeror withdraws an offer.
Offeror is MASTER of the offer and can revoke at any time
You can only revoke only when reasonably communicated to the offeree,
Firm Offers
Firm offers: occurs when the offeror promises to hold an offer for acceptance for a certain period
(not binding)
Offeror can revoke at any given tize
Firm offer is NOT contain in a contract and therefore not enforceable in law
Firm offer cannot be revoked if: the offers promise was placed under a seal or if the offeree
paid for the right to accept within a certain period
Example:
1. You may want buy a piece of land in the future BUT you are not prepared to commit
yourself to the transaction just yet, you might try an OPTION from an owner
Option: is a contract in which the offeror is paid in exchange for a binding promise to hold an offer open
for acceptance for a specific period (binding)
1. It would allow you and the offeror at some point of time in the future to create a contract for
the sale of land
2. It would immediately create an entirely separate contact requiring the offeror to wait while you
decide whether to buy the land.
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Document Summary

Invitation to treat: is an indication of willingness to receive an offer. Distinction between an offer and an invitation depends on the objective test. How a reasonable person would interpret a particular statement. Or would it be more reasonable to believe that the person making the statement was simply prepared to receive and consider offers. Example: an advertisement me be considered an offer if a reasonable peron would read it that way. If i say indicate that a limited number of items are avaible while supplies last. Statement is not an offer unless it is communicated and received as an offer. Example: written: if you buy a tv from a department store on credit, you will probably be asked to complete a lengthy application that contains countless terns and conditions. That is your offer to the store: verbally: if you go to the restaurant and say : a cheeseburger and a milkshake please.

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